Traditionally regarded as Swiss economic hub, Zurich has lost its top position to three French speaking cantons – Geneva, Vaud, and Valais – collectively known as the ‘Lake Geneva region’.
According to new government figures, together, the three cantons generated a gross domestic product (GDP) of approximately 190 billion francs in 2024, dethroning Zurich, with revenues of ‘only 167 billion francs.
What happened – any why?
It appears that Zurich’s has recently suffered several setbacks.
Within a month of each other, Vontobel and Cembra banks announced their departure from the city, relocating their respective headquarters to Baar (in the canton of Zug) and Baden (in Aargau)..
In total, these departures represent a loss of 2,160 jobs for Zurich’s financial hub.
‘Second-rate’ destination?
And according to media reports, “a long-established hotelier in the city believes that Zurich has now become nothing more than a ‘second-rate destination.’
The Lake Geneva region – and especially Geneva and Vaud – meanwhile, is thriving.
Together, these two cantons have a combined GDP of more than 168 billion francs, even though their total population is smaller than Zurich’s – approximately 1.4 million versus over 1.6 million.
Zurich seems to be ‘slipping’ in other ways as well.
An analysis by the real estate consultancy Wüest Partner reveals that an increasing number of people living in major urban cantons like Zurich, where rents are among highest in Switzerland, are relocating to ‘cheaper’ neighbouring cantons like Aargau, Schaffhausen, and Thurgau, (The same pattern is observed in Geneva as well, with people moving to neighbouring Vaud).
Zurich, however, loses the most residents – 3,500 per year – while Geneva’s tally is 1,400.
At the same time, almost 19,000 net newcomers from abroad have settled in Zurich, and 10,300 in Geneva.
READ MORE: More and more residents move out of big Swiss cities to neighbouring cantons
