Economy: thriving year for Geneva businesses

The past year was flourishing for most companies established in Geneva. This is what the survey published by the Geneva Chamber of Commerce, Industry and Services (CCIG) reveals, which the “Tribune de Genève” was able to consult first. The satisfaction level of its members stands at 3.3 points out of 5, a slight increase compared to previous years.

“The year 2023 is a great year,” rejoices Vincent Subilia, general director of the CCIG. Although some dark spots call for vigilance, the Geneva economy is generally doing well.”

Nearly 531 companies (or 24% of the companies surveyed) responded to the umbrella organization’s questionnaire, with a slight prevalence from trading and industry circles. Nearly half of them judge that the past year was good or very good. The highest satisfaction rates are found in the hotel and catering sectors, as well as transport and logistics.

Good profitability

The very good results in banking, chemicals and watchmaking mask the difficulties of some companies in these sectors. As for trading, which nevertheless recorded record figures, 44% of companies consider the past year to have been very difficult or difficult. “These are sectors subject to international fluctuations, which were significant in 2023.”

“On the pharma side, we can assume that this is a post-Covid effect,” analyzes Mario Marchesini, project manager for the political department of the CCIG. This is verified in the profitability rates of companies, where trading and pharmaceuticals are suffering: 33% of companies in this sector show a drop of more than 10% in their profitability.

On the commitments side, we note a nice improvement. Nearly 34% of respondents increased their workforce in 2023. Here, contrasts emerge: the major watchmaking houses recruited heavily, while their subcontractors eased off at the end of the year. This is also the case in the health sector. “Nearly 50% of companies active in this field have hired staff,” rejoices Mario Marchesini. But they can sometimes face recruitment difficulties.”

Companies optimistic about the future

The future looks even brighter. Almost half of CCIG members believe that their profitability will increase further in 2024; 34% of them also plan to hire staff in the coming months.

For its 2024 study, the CCIG also questioned companies on their needs in terms of layout and mobility. “The cross-border territorial vision, which will serve as the basis for the next cantonal master plan, will soon be published. We wanted to bring a perspective focused on economic needs,” explains Nathalie Hardyn, director of the political department.

What comes out of it? First, that very few companies are thinking of moving anytime soon. Only 13% of them plan to relocate their offices. Of these, 79% wish to go elsewhere in the canton. “It’s good news, Geneva remains an attractive place,” smiles Vincent Subilia.

Be careful, however: among the eight companies in the survey considering moving abroad are two companies with between 100 and 500 employees. “Everyone knows to what extent these types of large companies have a key importance for state revenue,” underlines the director. It would be a shame to lose such key taxpayers and employers.”

Mobility influences choices

Another interesting point emerges from this chapter of the study. “The mobility offer is very important for Geneva companies,” explains Mario Marchesini. 77% believe that good public transport access is important when choosing a location.” Then come the quality of the roads, the rail service and the proximity to the airport.

In short, the Geneva economy is doing well and businesses do not seem ready to leave. “It’s true,” recognizes Vincent Subilia. Thanks to various reforms, the corporate tax has become relatively balanced. But this is not the case for that on natural persons, which remains too high. However, the latter also weighs in the choice of companies, in particular traders. They have high salaries and contribute significantly to tax revenues.”

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