A significant number of Swiss nationals abroad maintain bank accounts, own property or hold pension entitlements in Switzerland – strong financial and emotional ties that keep them closely connected to their roots. Naturally, they continue to monitor developments and market trends in Switzerland with keen interest.
The community of Swiss nationals living abroad is experiencing steady growth. At present, approximately 830,000 individuals holding a Swiss passport reside outside the country, equating to one in every nine Swiss citizens. Some return temporarily to their homeland before relocating to a third country, reflecting a broader trend of increasing global mobility (Graphic 1).
Despite geographical distance, a shared sense of identity unites this diverse group. Family ties, lifelong friendships, cherished memories, cultural traditions and language serve as enduring connections to their roots. For many, Switzerland also remains a pivotal financial hub. The reliability of its payment systems, the necessity of managing pensions or mortgages, and the country’s renowned stability make it a cornerstone for financial security. These factors underscore Switzerland’s enduring relevance in the lives of its citizens, no matter where in the world they may reside.
This close financial connection to Switzerland explains the keen interest in events that impact the Swiss market. Recent examples include the U.S. trade tariffs and the zero interest rate policy implemented by the Swiss National Bank since mid-year.
Graphic 1: 826,700 Swiss Nationals Abroad in 2024
Percentage Distribution by continent of residence
Source: Zürcher Kantonalbank, BFS – Swiss Nationals Abroad as of 31 December 2024
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Focus on current economics
Initially expected in October, it was not until mid-November that Switzerland and the United States reached a joint agreement to reduce the exorbitant tariffs of 39% on Swiss goods to levels comparable with key competitor nations – capped at a maximum of 15%. However, despite this agreement, any sense of euphoria would be misplaced, as the deal comes at a significant cost for Switzerland. The country has committed to making direct investments in the U.S. amounting to USD 200 billion by the end of 2028, with pharmaceutical companies expected to shoulder the largest share of this commitment.
The details of the agreement remain unclear, including the timeline for implementing the new tariff rates and which products will be exempt. To date, exemptions have primarily applied to pharmaceutical products and gold. The U.S. government, however, is pursuing a distinct strategy for medications: it aims to bring the largest pharmaceutical companies to the negotiating table to enforce lower drug prices. The terms for these negotiations will be dictated solely by the U.S. administration.
While U.S. import tariffs of 15% are significantly lower than the 39% implemented in August, they remain five times higher than the 3% rate seen at the start of 2025. As a result, Swiss industrial companies continue to operate at a slower pace, which is likely to have a dampening effect on economic growth. However, there is also positive news to report. Over 90% of all Swiss goods and service exports are not subject to U.S. import tariffs. Additionally, three-quarters of Switzerland’s economic value creation is generated in the services sector. While the tariffs may act as a drag on growth, the overall economic impact is expected to remain limited.
Despite the challenges posed by tariffs, the long-term outlook for the Swiss stock market remains robust, according to experts at Zürcher Kantonalbank. Beyond its political and economic stability, Switzerland is renowned for its strong democratic institutions, its capacity for innovation, and its attractive tax system – all of which continue to underpin confidence in the country’s economic resilience.
175 Years of the Swiss Franc1
Switzerland’s political and economic stability is reflected in the strength of its currency, the Swiss franc. Often referred to as a “safe haven” currency, the franc is particularly sought after during times of crisis. According to Ernst Baltensperger, emeritus professor of economics at the University of St. Gallen, the franc’s current strength can only be understood by looking at its history.
Its history can be briefly summarized: In the first half of the 19th century, around thirty different coins were in circulation, including those from neighbouring countries. These coins often had inconsistent metal content, which did not always correspond to their face value. The robust Swiss franc we know today was still a distant prospect.
The second half of the 19th century was marked by social tensions stemming from industrialisation, which also triggered a wave of emigration. By the end of the First World War, the Swiss franc was no longer tied to its value in precious metals. Over the course of the 20th century, it evolved into the globally sought-after currency it is today, a trusted asset for investors worldwide and a financial anchor closely monitored by Swiss citizens living abroad.
How to Navigate Uncertainty
Fluctuations in financial markets often unsettle investors, frequently leading to hasty sell-offs. The Swiss Performance Index (SPI) (see Graphic 2) has weathered significant challenges since 1987, including a real estate bubble, an IT bubble, a global financial crisis, and, most recently, a pandemic. However, it has consistently managed to recover from all setbacks over time.
Grafik 2: Steady growth in Switzerland despite crises
Swiss Stock Market Index (SPI), December 1987 to September 2025
Source: Zürcher Kantonalbank, LESG Datastream
A similar trend can be observed in stock indices of other countries and regions. This is why, especially during turbulent times, it is crucial to maintain a well-diversified portfolio, stay calm, and adhere to a long-term investment strategy.
History demonstrates that Switzerland has consistently found ways to overcome challenges, even in difficult periods – a resilience that ensures it remains an attractive option for Swiss nationals living abroad.