Switzerland’s appeal to multinationals is eroding, study says

Switzerland remains one of the world’s most competitive countries, but the advantages that draw multinational companies are beginning to lose their shine, according to a report due to be published this week.

McKinsey and the Swiss-American Chamber of Commerce point to slow regulation, a less attractive tax environment and high energy costs. Their assessment comes as multinational companies increasingly consider other economic hubs for investment.

“Switzerland is well positioned, but this must not be considered a given carved in stone,” Michael Steinmann, managing partner of McKinsey Switzerland, told Le Temps. “When multinationals increasingly favour other economic hubs for their investments, that is an alarm signal that must be taken seriously.”

The report does not yet show that Switzerland has lost ground. Between 2020 and 2025, the country maintained a 20% share of major corporate relocation flows in Europe. That means one in five multinationals relocated part of its activities to a Swiss canton during the period. The two organisations nevertheless are calling for action as competition from other locations intensifies.

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Switzerland is well positioned, but this must not be considered a given carved in stone. When multinationals increasingly favour other economic hubs for their investments, that is an alarm signal that must be taken seriously.