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Swiss economy 2025: rising bankruptcies and a record of new businesses — what is really happening

In a nutshell. In 2025 corporate bankruptcies in Switzerland rose by more than 18% compared with 2024, with even higher peaks in some sectors and cantons. At the same time, new business formations reached a historical record with 55,654 new companies. The paradox is explained by a mix of factors: cyclical difficulties, the end of the effects of COVID measures, and — a key factor often ignored — an amendment to the bankruptcy law that entered into force on 1 January 2025.

The bankruptcy figures in 2025

Dun & Bradstreet data published by kmu.admin.ch show a clear acceleration: corporate bankruptcies were around 9,314 in 2025, up by 18.6% on the 7,856 of 2024. Creditreform, monitoring the first 11 months, reported an even more marked rise, of around 36.4% year on year.

To gauge the scale: construction, catering and retail were the three sectors with the most absolute bankruptcies in 2025. In the second quarter alone, catering recorded a +55% increase compared with the same period of 2024, construction +17.8%, retail +16.8%.

On the geographical front, the cantons with the biggest percentage rises were Valais (+65%) and St. Gallen (+59%). Ticino was among the least exposed cantons, with a slightly negative variation (-2%) — a figure that also reflects the more diversified economic structure and the fabric of Ticino SMEs.

The lesser-known cause: the 2025 amendment to the bankruptcy law

Among the causes of the leap, one is technical and often ignored in public debate, but it has had a very concrete impact: the amendment to the bankruptcy law that came into force on 1 January 2025.

Before that date, tax debts of companies registered in the Commercial Register could only be recovered by the tax authority via debt-enforcement (seizure) procedure. From 2025, they can be directly enforced via bankruptcy proceedings. This exposed many companies with tax arrears to procedures that would not previously have been activated. A significant part of the rise in bankruptcies is attributable to this regulatory change, not only to actual economic difficulties.

It is an important distinction: not all 2025 bankruptcies are the signal of an economic collapse; some are the formalisation of pre-existing debt situations that the new law made it easier to bring to the surface.

The other causes: COVID, business cycle, strong franc

In addition to the regulatory change, other structural and cyclical factors weigh:

• End of COVID measures: companies that survived the pandemic thanks to zero-interest COVID loans now have to repay them (deadline 2028) and face the market without protection. Some of those that were already in difficulty before the pandemic have only emerged now.
• Cyclical difficulties: Swiss growth in 2025 is estimated at around 1.3-1.4% (real GDP, source Pictet/Raiffeisen), not in recession but not vigorous either. Exports held back by the strength of the franc.
• Strong Swiss franc: the EUR/CHF rate has held at levels that penalise exporters, with the franc historically overvalued by parity standards.
• Interest rates and personnel costs: the SNB brought the policy rate back to 0% in September 2025, but personnel costs remained high for SMEs that struggle to find and retain employees.

The paradox: record new companies as bankruptcies rise

While bankruptcies were rising, new business formations reached a historical record in 2025: according to the Institut für Jungunternehmen (IFJ) cited by kmu.admin.ch, new companies registered in the Commercial Register were 55,654, up by 5.1% on the 52,978 of 2024.

The most dynamic sectors for new foundations were crafts (5,829 new companies), consulting (5,733), real estate (5,235) and architecture/engineering (4,284).

How do the two phenomena reconcile? Dun & Bradstreet's answer is clear: it is normal for more companies to be created and for more to fail. When the creation rate is high, the failure rate — which mainly concerns young companies in their first years — tends to follow. It is a signal of economic dynamism, not of crisis. This does not eliminate concern for the specifically affected sectors, but it frames the phenomenon correctly.

In historical perspective, 2025 new formations are 34.7% higher than 10 years ago: Switzerland has become more entrepreneurial, not less.

The Swiss business cycle in 2025-2026

The macro picture is one of moderate stability, not of crisis:

• Real GDP 2025: growth estimated at around 1.3-1.4% (Pictet, Raiffeisen).
• Inflation: 0.7% on average in 2025, contained thanks to the strength of the franc.
• SNB rate: brought to 0% in September 2025, after progressive cuts in 2024-2025.
• 2026 prospects: weak growth, with downside risks linked to US tariffs on Swiss exports and to geopolitical uncertainty.

We are not in recession, but not in robust expansion either. For SMEs operating in exposed sectors (exporters, construction, catering), the context calls for attention.

What an SME can do to protect itself

The measures recommended by BDO and kmu.admin.ch for SMEs that want to reduce insolvency risk:

Liquidity and receivables:

• Recover receivables promptly: do not hesitate to contact debtors and activate collection procedures.
• Constantly monitor cash flows with 30-60-90 day forecasts.

Controlling and accounting:

• Identify loss-making activities or products/services that cost more than they yield.
• Keep up-to-date accounts that allow seeing the financial situation in real time, not at year-end.

Relations with creditors:

• Promptly communicate difficulties to suppliers and banks: those who are transparent find more willingness to negotiate.
• Request staggered invoicing, extensions or renegotiations when needed, before the situation becomes critical.

Legal aspects:

• In case of over-indebtedness, Swiss law requires notification to the judge without delay. Delaying exposes the entrepreneur to civil and, in serious cases, criminal liability. The composition moratorium is a tool that can give the restructuring breathing space — but it must be requested before collapse, not after.

The role of the fiduciary: financial early warning

For an SME, having a fiduciary alongside is not just a compliance matter: it is the most effective way to have a financial early-warning system. Up-to-date accounting, regularly analysed, allows you to see deterioration signals in advance — falling margins, lengthening collection times, rising payables to suppliers — before they become emergencies.

The time to act is when the situation is still manageable. Acting after a liquidity crisis has exploded is much more costly and leaves fewer options.

How we help

Fidav supports SMEs in Ticino and Switzerland with accounting and management control that give real visibility on financial health, not just the year-end balance sheet. We keep margins, liquidity and risk indicators under control, and when something is off, we say so before it becomes a problem.

Read more on our accounting and financial administration and on corporate and strategic advisory for support in more complex situations.

Want a financial health check on your company? Chat with us on WhatsApp at +41 79 741 02 89 or call +41 91 640 40 20.

FAQ (visible on page + FAQPage schema above)

How many bankruptcies were there in Switzerland in 2025? According to Dun & Bradstreet data cited by kmu.admin.ch, corporate bankruptcies in Switzerland were around 9,314 in 2025, up by 18.6% on the 7,856 of 2024. In the first 11 months of 2025 the increase was even more marked, around 36%. The main causes are a new bankruptcy law since 1 January 2025, cyclical difficulties and the end of the effects of COVID measures.

Which sectors had the most bankruptcies in Switzerland in 2025? The most affected sectors in 2025 were construction, catering (+55% in Q2) and retail. Among cantons, Valais (+65%) and St. Gallen (+59%) recorded the most marked increases. Ticino was among the least affected cantons, with a slightly negative variation.

Why did bankruptcies rise precisely in 2025? A specific cause is the amendment to the bankruptcy law that came into force on 1 January 2025: from that date, tax debts of companies registered in the Commercial Register can be directly enforced via bankruptcy proceedings, rather than only via debt-enforcement (seizure). This exposed many companies with pre-existing tax debts to procedures that would not previously have been initiated.

How is the Swiss business cycle in 2025-2026? Switzerland recorded real GDP growth of around 1.3-1.4% in 2025, with inflation contained at 0.7% on average. The SNB brought the policy rate to 0% in September 2025. The 2026 outlook indicates weak growth, with risks linked to US tariffs and geopolitical uncertainty.

What can an SME do to reduce insolvency risk? The most effective measures are: proactively manage liquidity, keep precise controlling, maintain transparent communication with creditors in case of difficulty, and rely on a fiduciary partner that detects deterioration signals in advance. Swiss law requires notification of over-indebtedness to the judge without delay: delays expose to civil and criminal liability.