Foreign investment hits record level in Switzerland
Foreign direct investments in Switzerland grew 52.9 percent to a record CHF 59 billion in 2007, says the Swiss National Bank.GENEVA – Foreign direct investments in Switzerland grew 52.9 percent to a record CHF 59 billion in 2007, latest data released Thursday by the Swiss National Bank show.
The growth was driven by foreign acquisitions which contributed CHF 24 billion and reinvested earnings which more than doubled to CHF 35 billion, the SNB said in a statement.
During the same period, direct investments made by Swiss companies abroad fell 37.3 percent to CHF 59.6 billion.
"The major reason for the decline was the strong drop in acquisitions abroad on the part of manufacturing," said the SNB.
Income from direct investment made by Swiss firms abroad also fell 13.3 percent to CHF 60 billion, "attributable to bank losses," said the SNB.
The two biggest Swiss banks UBS and Credit Suisse have lost billions of Swiss francs owing to the United States subprime home-loan crisis.
UBS posted its first full-year loss of CHF 4.4 billion for 2007 while Credit Suisse had to write down CHF 4.12 billion of assets during the period.
[AFP / Expatica]