Switzerland is slipping down the rankings

Switzerland has slipped to third place in the 2026 IMD ranking. The slump in economic performance strikes at the heart of the country’s competitiveness: as growth slows and foreign trade comes under pressure, the demands on investment, land and regulation also increase.

Switzerland has slipped from first to third place in the IMD World Competitiveness Ranking 2026. It is now overtaken by Singapore and Hong Kong. The decisive factor is not a broad decline across all factors, but the sharp drop in economic performance: in this sub-category, Switzerland has fallen from 13th to 37th place.

For the property and business sectors, this is more than just a symbolic figure. Those who develop land, market locations or allocate capital for the long term do not look solely at administrative efficiency and infrastructure. What matters is whether a country can translate growth into productive demand, export strength and business dynamism. It is precisely here that the findings for Switzerland become uncomfortably concrete.

Strong on institutions, weaker on output
The IMD continues to award Switzerland top marks for the efficiency of its government and administration, as well as for its infrastructure. Companies, too, remain solidly positioned in international comparison. The setback comes, of all places, where a country’s economic attractiveness must be demonstrated: in actual performance. This is in keeping with a year in which the Swiss economy, whilst not having collapsed, has remained well below average. According to available forecasts, growth of just 0.9 per cent is expected for 2026.

This also shifts the outlook for Switzerland as a business location. High institutional quality alone is not enough when access to foreign markets becomes more difficult and global fragmentation intensifies. The IMD therefore links Switzerland’s decline to the question of how resilient a small, open economic area remains under more protectionist conditions.

Implications for projects and capital
For the property sector, the impact is secondary but very real. Weaker growth does not automatically slow the market, but it does shift priorities. Investors are placing greater emphasis on income security, flexibility of use and regulatory predictability. Developers and property owners are increasingly reliant on densification, repurposing and business relocations meeting a robust demand trajectory. If the external economy loses momentum, the domestic market becomes more important, and with it the question of how competitive and business-friendly Switzerland remains internally.

The country’s position must be underpinned more broadly
From the perspective of the ranking, the pressure to act therefore lies less with Switzerland’s traditional strengths than with their economic implementation. The report highlights broader market access abroad, reliable business-friendly regulation, greater competition in the domestic market, and sustainable public finances and social security systems. For Switzerland as a business location, this is a sobering message: sound procedures and good infrastructure remain an advantage, but they carry less weight if sluggish growth becomes a structural issue.