Geneva's economy is projected to grow by 2% in 2025, primarily driven by the pharmaceuticals and services sectors.
While these sectors have shown resilience, other manufacturing industries are under pressure. The heavy reliance on key sectors makes Geneva vulnerable to global economic fluctuations. The current geopolitical climate poses risks to the region's economic stability, particularly in terms of raw material supply chains.
Despite these uncertainties, the fundamentals of Geneva's economy remain robust, with healthy profit margins and full order books reported by companies. However, rising raw material prices could lead to inflationary pressures.
Diversification is seen as essential to mitigate risks associated with external shocks. The pharmaceutical and services sectors are expected to lead economic growth, but the concentration of economic activity in a few industries raises concerns about long-term sustainability. Stakeholders are urged to consider strategies that promote diversification and reduce reliance on a narrow range of sectors.
In summary, while Geneva's economy is poised for growth in 2025, caution is necessary due to the interplay of global dynamics and local vulnerabilities.