Swiss Industrial Outlook Remains Bleak Amid Global Trade Tensions

The Swiss engineering and technical sector is facing another challenging year due to weak global demand and escalating trade conflicts. Sales and exports saw significant declines in 2024, with potential tariffs from the U.S. adding to concerns. Swissmem urges for relaxed export restrictions and new trade deals.

The Swiss engineering and technical sectors are bracing for another challenging year as global demand remains sluggish and trade tensions escalate. According to Swissmem, a leading industry group, 2024 saw a 4.6% drop in sales and a 3.1% decline in exports, with the outlook for recovery still grim.

The downturn is largely attributed to weak demand in Europe, though markets in the United States and India saw growth. Swissmem has warned of potential additional challenges if the U.S imposes further tariffs, which could provoke retaliatory measures from the European Union, severely affecting Swiss exports.

Despite being a significant contributor to Switzerland's GDP, the domestic industry is grappling with uncertainties. Swissmem has advocated for new trade deals and easing restrictions on arms exports to bolster the economy, emphasizing the importance of a robust defense industry for national security.