Disinvestment in Switzerland and abroad due to balance sheet reductions at foreign-controlled finance and holding companies - Domestically controlled multinationals increase direct investment abroad - Higher income from direct investment abroad - Stagnating turnover and staff numbers abroad

Swiss direct investment abroad

In 2024, companies domiciled in Switzerland (resident companies) repatriated a total of CHF 11 billion from their non-resident subsidiaries. The reduction was attributable to
foreign-controlled finance and holding companies, which withdrew CHF 52 billion of funds from abroad. This disinvestment, which resulted from corporate restructuring and the liquidation of non-resident subsidiaries, continued the balance sheet reductions observed in past years. By contrast, manufacturing and the rest of the services sector (excluding foreign-controlled finance and holding companies) registered net investment abroad of CHF 41 billion. Most of this investment was by banks (CHF 23 billion), which strengthened the capital base of their non-resident subsidiaries. Investment by companies in the 'Other manufacturing and construction' category (CHF 9 billion) primarily took the form of reinvested earnings. Acquisitions played an important role in investment by the transportation and communications category (CHF 5 billion).

Investment by resident companies exceeded disinvestment in Asia (CHF 8 billion), Central and South America (CHF 6 billion) and the US (CHF 6 billion). Within Europe, resident companies invested mainly in Italy (CHF 7 billion) and the UK (CHF 6 billion). Overall in Europe, however, they reduced their investments by CHF 35 billion. This was predominantly attributable to capital withdrawals from holding company locations, primarily from Hungary (CHF 37 billion), followed by Luxembourg, the Netherlands and Ireland (CHF 20 billion in total).

At the end of 2024, direct investment stocks abroad amounted to CHF 1,340 billion. At CHF 412 billion (31% of the total), finance and holding companies reported the largest capital stocks abroad. They were followed by companies in the chemicals and plastics category at CHF 190 billion (14%) and trade at CHF 187 billion (14%).

Income from direct investment increased significantly, by CHF 11 billion to CHF 108 billion, compared to the previous year (up 12%). This corresponds to an 8.0% rate of return on the capital stocks (2023: 7.4%).

Foreign direct investment in Switzerland

In 2024, non-resident entities again repatriated capital from resident companies. The net disinvestment amounted to CHF 83 billion (2023: CHF 70 billion). The withdrawals were once again largely in the finance and holding companies category (CHF 81 billion). Withdrawals from finance and holding companies have been observed since 2018. In the period 2018-2024, these amounted to approximately CHF 660 billion on a cumulative basis.

Non-resident entities also reduced direct investment in the rest of the services sector. Most of this disinvestment was by companies in the transportation and communications category (CHF 5 billion). The manufacturing sector, by contrast, recorded a net inflow of foreign direct investment. The largest amount of capital was invested in companies in the chemicals and plastics category (CHF 3 billion).

Stocks of foreign direct investment in Switzerland amounted to CHF 926 billion. Of this total, CHF 887 billion (96%) was equity capital and CHF 39 billion (4%) was intragroup loans.

Income from direct investment in Switzerland declined by CHF 10 billion to CHF 92 billion compared to the previous year (down 9%). This corresponds to a 9.9% rate of return on the capital stocks (2023: 10.8%).

Operational data on multinational enterprises

In 2024, the domestically controlled companies surveyed by the SNB had 21,300 non-resident subsidiaries, where they employed 2,484,000 people and generated annual turnover of CHF 868 billion. All operational data was thus roughly on a par with the previous year. The domestically controlled companies surveyed by the SNB that have participations in non-resident enterprises are also significant employers in Switzerland, where staff numbered 561,000.

Remarks

Comprehensive tables on direct investment and operational data for multinational enterprises are available on the SNB's data portal (data.snb.ch) under Topics/International economic affairs/Data/Direct investment. The data can be accessed in the form of charts and configurable tables. Further time series can be found under Topics/International economic affairs/Supplementary data/Direct investment. Information on the methods used in direct investment statistics is available under Topics/International economic affairs/Notes, changes and revisions/Direct investment.

The publication of the Direct Investment report includes a revision of previous years' figures. The period concerned is 2015-2023. At the same time, data has also been harmonised with balance of payments series already published. Two new subtotals for Swiss direct investment abroad have been introduced in this publication: 'Total foreign-controlled enterprises' and 'Total excluding foreign-controlled enterprises'. The new series are presented in a separate section entitled 'New: Swiss direct investment abroad by control'.

The staff numbers at resident parent companies are published by the Swiss Federal Statistical Office (SFSO) as part of their enterprise groups statistics (STAGRE). The SNB publishes the staff numbers of those resident parent companies that are included in its surveys.

The report is available from 12 December 2025 on the SNB website at www.snb.ch, News&Publications/Statistical publications/International economic affairs/Direct Investment. The printed version may be obtained from the SNB from 18 December 2025.