OREANDA-NEWS. RnR Market Research Offers Report by Research on Switzerland Infrastructure Report Q3 2016

BMI View: The growth outlook for Switzerland's infrastructure sector remains muted this quarter, with a limited project pipeline reflecting the overall maturity of the market as well as the government's prudent spending policy. Transport infrastructure, in particular rail infrastructure, will remain the key source of growth as both government and regional funding drive forward a number of domestic and cross-border rail projects. Some upside risk is also presented by the power sector where we expect to see investment in new non-hydropower renewables capacity as nuclear power is phased out of the domestic energy mix. Latest Updates And Structural Trends

- Challenges in the power sector may deter some investors. The full liberalisation of the electricity market was due to take effect from January 2018; however, in May 2016 the Federal Council confirmed it was indefinitely delaying the process amid supply security uncertainty. Leading hydropower producer ALPIQ has also announced plans to divest nearly half of its portfolio in Switzerland due to falling profitability.

-  The transport sector continues to show strong growth, though with several major projects such as the Gotthard Base Tunnel nearing final completion in the coming months, we do expect growth to slow. ? Overall we expect to see the Swiss construction sector grow in real value terms by 0.4% in 2016, followed by average annual growth of 1.7% over the remainder of the forecast period between 2017 and 2025.