Swiss Medtech Surpasses National Economic Growth Rate, but Momentum Slows

The Swiss medtech industry has seen significant growth over the past two years, outpacing the country's overall economic growth rate. According to a recent study, the sector generated CHF 26 billion in sales and grew by an average of 5.5 percent annually over the past two years, which is twice the rate of the Swiss economy as a whole.

The industry employs close to 72,000 people, accounting for around 10 percent of industrial value added in Switzerland. Exports reach around CHF 12 billion and generate a trade surplus of CHF 5.5 billion, making it the third largest after pharmaceuticals and watchmaking.

However, the study notes that there are signs of slowing momentum in the sector. Net job creation over two years was only around 200 positions, which is significantly lower than the ten-year average of 1,500. Moreover, some 43 percent of companies report no investment plans, with a sharp decline in planned funding for production and R&D.

The study also highlights that more than half of companies rate Switzerland's attractiveness as a location less favorably than five years ago. Domestic political stability and legal certainty are the leading positive location factors, while the strong Swiss franc, trade agreements and tariffs, wage costs, and administrative requirements are seen as burdens.