Swiss economic performance depends on domestic demand and trading conditions in the international market, but the export sector is struggling to regain former volumes and domestic consumption remains sluggish.
Once again Swiss construction costs remain some of the highest in the world with high wages and the strong currency acting as key drivers of cost. Growth in construction in 2017 will be similar to that in 2016 – slow but steady.
There is sufficient liquidity in the economy but investment in construction is relatively subdued and increases in infrastructure investment in roads and rail are not likely before 2018.
Low interest rates have driven up residential construction levels and there has been some price growth. The sector looks to be overheating with supply exceeding household demand for now.
Switzerland remains politically and economically stable and is less affected by regional issues than EU member states. The solid fiscal balance gives plenty of opportunity to invest in high‑quality infrastructure, which has been modest in recent years.