Ticking along nicely

Dominic Carman

How Swiss law firms are surviving and thriving in turbulent times

It was a shotgun wedding brokered by the Swiss government over a single weekend – to prevent the collapse of Credit Suisse and potential contagion within the financial system. But two years on from the forced merger between UBS and Credit Suisse, Switzerland appears to be as stable as ever with almost no collateral damage to the economy from the deal: domestic interest rates are at zero, the inflation rate marginally above zero and Switzerland’s GDP growth in 2025 is projected to be around 1.3% to 1.5%, above forecasts of 0.9% to 1% for the Eurozone average. However, things certainly look more challenging internationally, according to the Swiss National Bank (SNB). Published in June, the SNB’s 2025 Financial Stability Report cautioned that trade and geopolitical tensions make Switzerland’s economic outlook very uncertain, concluding that: “Several risk factors could amplify the impact of potential negative shocks on global economic and financial conditions.”

Globally, those risks include public debt at near historical peaks, high valuations of residential real estate and corporate bonds, and the US stock market still appearing. stretched, according to the SNB. Notwithstanding these anticipated risks, most events beyond Swiss borders – including the Ukraine War and Gaza conflict – have yet to make much impact domestically. Consistently recognised for its strength, stability, and innovation, Switzerland still has one of the world’s most competitive and open economies, underpinned by a highly-educated workforce, a very good standard of living, robust infrastructure, an attractive tax environment, and a location at the heart of Europe.