Switzerland is among the most developed nations and is a free market economy. The country was the 15th largest exporter across the globe, accounted for nearly $302 billion in 2018 and was the 13th largest importer globally with nearly $272 billion in 2018. The EU is Switzerland's key partner for trading. Nearly 43% of the country’s exports are destined for EU countries and 78% of the country’s imports reported from the EU. In 2019, nearly 83% of the country’s exports of manufactured goods to the EU were reported as compared to the primary goods which represented 11% of EU exports of goods. The primarily exported manufactured goods include chemicals and machinery. 

However, the country’s will likely decline in 2020 owing to the global crisis of coronavirus, which has increased concerns regarding low industrial output, supply chain disruptions, and decline in profitability. The machinery and equipment manufacturers are suffering from low demand due to shutdown of several industrial operations, including automobile and construction. For instance, OC Schindler Management AG, a manufacturer of escalators, elevators, and moving walkways anticipates a decline in their revenue in the first quarter of 2020. Due to COVID-19 epidemic, Schindler sees its revenue growth for full-year 2020 in local currencies is anticipated to be contained between 0% to -10%. Earlier, the company estimated the revenue for the full year 2020 between 0%-5% in local currencies at risk. 

Depreciation of key foreign currencies against the Swiss franc resulting in the effects of negative currency translation, which is now anticipate being higher as compared to estimated earlier. In 2020, the restructuring costs are expected to reach up to nearly $103 million, enabled by the factory closure in Spain and speed up of efficiency programs in selected countries. By considering the impact of COVID-19, higher restructuring costs and foreign currency headwinds, the company’s net profit in 2020 is expected to be lower than 2019, in the order of magnitude of 20%. Apart from this, the machinery and equipment manufacturers are also facing concerns regarding low demand for their products across industries owing to the lockdown effect in several countries. 

Switzerland government and banks are taking initiatives to reinforce the economy. For instance, on 13th March 2020, the government declared several measures which amounted to nearly $10.3 billion. These measures include compensation to decreased export promotional operations of nearly $4.6 million and nearly $10.3 million as a guarantee to the organizations for covering their additional costs. Other measures include emergency support to compensate salaries of temporary laying off and further effective measures for companies primarily affected worth $1 billion. Additionally, banks are working to lend funds to small business affected by coronavirus pandemic. For instance, Credit Suisse has reported proposing a plan of a $20 billion lending fund, along with UBS Bank. This fund intends to ensure short-term liquidity for SMEs in Switzerland whose operations hit by the COVID-19 outbreak. This, in turn, will help to revive the economy from the crisis.

The study on the impact of COVID-19 on Switzerland economy is classified based on industries, such as energy, healthcare, aviation, machinery and equipment, and others. In healthcare industry, a significant demand for essential medical equipment and medicines has been witnessed due to the COVID-19 pandemic. Medicines, diagnostic equipment, and other medical supplies, including ventilators, are in significant demand to deliver better care to COVID-19 patients. The pharmaceutical and diagnostics equipment companies in the country are focusing on medications and diagnostic tests for the treatment of the condition. 

For instance, on 24th March 2020, F. Hoffmann-La Roche AG initiated a global phase III study and gathers data regarding the potential use of Actemra in severe COVID-19 pneumonia patients. Owing to the support of its global network, the company is able to deliver medicines globally. Due to the declaration of novel clinical trials and a significant rise in the demand for Actemra, the company is urgently working to leverage production capacity to accelerate manufacturing of Actemra. Further, on 12th March 2020, the company received FDA Emergency Use Authorization (EUA) for the cobas SARS-CoV-2 test for detecting novel virus that causes COVID-19 disease.

The operations of some crucial companies getting affected by COVID-19 outbreak include Nestlé S.A., F. Hoffmann-La Roche AG, Novartis International AG, Lonza Group Ltd., and Stimit AG. On 24th March 2020, Nestle declared that they are suspending production temporarily at their plants in India, except for limited important products. The company’s decision is followed by India lockdown amidst the spread of COVID-19. Additionally, on 1st April 2020, Stimit AG, a Swiss startup has been awarded nearly $152,800 for the development of a non-invasive device to activate breathing muscles in the patients’ diaphragm in intensive care who are receiving mechanical ventilation. This is intended to decrease the COVID-19 patients with severe condition spend on ventilators, reduce the damage caused by mechanical ventilation to the lungs. Stimit has developed a prototype and is working to test the device among patients. 

Research Methodology

OMR global recently published a report addressing the impact of COVID-19 on Switzerland economy. The study is incorporated by extensive primary and secondary research conducted by the research team. Secondary research has been conducted to refine the available data. Different approaches have been worked on to derive the market value and market growth rate. In the report, the analysis of the country is provided by analyzing various regional players, laws and policies, consumer behavior and macro-economic factors. Besides, an expected recovery timeline of the industry will also be included with the best- and worst-case scenario which will aid clients to take their future steps in the decision-making process.

Sources Include

• Financial reports of companies involved in the market
• Whitepapers, research-papers, and news blogs
• Company websites and their product catalog
• Government Organizations Reports

The report provides an in-depth analysis on market size, intended quality of the service preferred by consumers. The report will serve as a source for 360-degree analysis of the market thoroughly integrating different models.

The Report Covers

• Comprehensive research methodology of the pre and post-COVID-19 impact on Switzerland economy.
• This report also includes a detailed and extensive market overview with key analyst insights.
• An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
• Analysis of regional regulations and other government policies impacting the Switzerland economy.
• Insights about market determinants which are stimulating the Switzerland economy
• Detailed and extensive market segments with regional distribution of forecasted revenues.
• Extensive profiles and recent developments of market players.