EY Study: Investment in Switzerland Plummets by 24 Percent
Foreign investment projects in Switzerland fell to their lowest level in years in 2025. The latest EY study reveals who is still investing—and why German companies have cut their projects in half.
The number of foreign direct investments in Switzerland fell significantly in 2025. According to EY’s new European Attractiveness Survey, investments in Switzerland declined by 24 percent—from 111 to 84 announced investment projects. This reflects a trend in Switzerland similar to that seen across Europe as a whole, where the number of projects fell by 7 percent to 5,026, reaching its lowest level in 11 years. The last time investment levels were this low was in 2014.
Investment Climate in Europe Under Pressure
The downward trend in foreign direct investment in Europe continues. Despite a 17 percent decline to 852 projects, France remained in the lead, ahead of the United Kingdom (730 projects, down 14 percent) and Germany (548 projects, down 10 percent). Contrary to the general downward trend, some locations recorded growth: Turkey increased by 20 percent to 383 projects, Poland by 10 percent to 285, and Spain by 7 percent to 376. The Netherlands grew by 8 percent to 159 projects. Switzerland and Austria rank 13th and 14th in Europe—both with significant declines.
André Bieri, Markets Leader for Switzerland and Liechtenstein at EY, explains the ongoing decline in investment in Europe as follows: «Protectionist measures in the U.S.—such as large-scale subsidy programs or tariffs designed to benefit domestic production—are primarily holding back investment in EU manufacturing sites. At the same time, there is uncertainty stemming from geopolitical developments. This includes, in particular, the risk of a recession in the U.S., which could spill over into Europe.»
The U.S. Remains the Largest Investor; German Projects Are Cut in Half
U.S. corporations slightly reduced their investments in Switzerland in 2025 from 27 to 25 projects (a 7 percent decrease), but in doing so created 158 new jobs—more than in the previous year (131). The U.S. thus remained the largest single investor in Switzerland. Bieri puts the relatively low number of projects into perspective: «This figure may seem small at first glance. However, it’s important to bear in mind that jobs created in Switzerland typically involve very high value-added work—especially compared to other European countries, where many of the newly created positions are in routine roles.»
German investment in Switzerland has been hit the hardest: It fell by half, from 14 to seven projects (a 50 percent decline), and the number of new jobs created dropped from 123 to 14. France and the United Kingdom surpassed Germany, each with nine projects. Next came China with four projects, followed by Belgium and Japan with three projects each.
Commenting on Switzerland’s status as an investment destination, Bieri says: «Despite declining investment, Switzerland continues to serve as a gateway to Europe for U.S. companies, which is why investment from the U.S. remains high. Switzerland continues to offer its well-known location advantages, combined with legal certainty and an attractive tax system. An established environment for research and development, as well as for new technologies and the corresponding talent, are further factors that set our country apart.»
Swiss companies are investing less abroad
Swiss companies also reduced their investments in other European countries in 2025: The number of projects fell by 13 percent to 214, creating 7,583 new jobs in the target countries (2024: 11,872). Switzerland thus remains in sixth place among the largest source countries of investment in Europe—behind the United States (943 projects), Germany (484), the United Kingdom (360), France (295), and China (261).
In 2025, Swiss companies invested primarily in France (35 projects, 1,260 new jobs) and Germany (34 projects, 851 jobs). Spain, Poland, and Turkey followed with 17 projects each, and Italy with 15. However, investments in France and Germany declined significantly compared to the previous year—by 39 and 28 percent, respectively.
The Defense Sector as a Growth Segment
The defense sector has seen a sharp increase: The number of foreign investment projects in this sector rose by more than 80 percent across Europe—from 58 to 107 projects. The top destination countries were the United Kingdom (20 projects), France (14), and Ukraine (12). The main drivers were U.S. companies, which expanded their projects from nine to 28. German companies were the second-largest group of investors in the defense sector. In total, defense investments created just under 7,000 new jobs across Europe (2024: approximately 3,150).
For more information on the EY study and the results for Switzerland, visit https://www.ey.com/ch.
