1. Strong Swiss Franc: The strength of the Swiss franc makes Swiss exports more expensive for international buyers, reducing their competitiveness in the global market.
2. High Labor Costs: Switzerland has high labor costs compared to many other countries, which can make Swiss-made products more expensive for manufacturers.
3. Limited Natural Resources: Switzerland has limited natural resources, so its economy heavily relies on imported raw materials and energy, making it vulnerable to fluctuations in global commodity prices.
4. Small Domestic Market: The domestic market in Switzerland is relatively small compared to other major economies, which means Swiss companies need to rely heavily on exports to grow their businesses. Any downturn in global economic conditions or changes in consumer preferences can significantly affect Swiss exports.
5. Geopolitical Tensions: As a neutral country, Switzerland may be impacted by geopolitical tensions, trade disputes, or economic sanctions, which can disrupt supply chains and affect exports.
6. Regulatory Environment: Switzerland has a complex regulatory environment, including strict quality standards, environmental regulations, and labor laws, which can increase the cost of doing business and limit the flexibility of Swiss companies in responding to market changes.
