Author: MIL-OSI Publisher

 Chisinau, Republic of Moldova – August 20, 2025 – Moldova is strengthening its position on international markets with an export-oriented agenda that will take center stage at Moldova Business Week 2025, the country's largest economic and investment forum. 

South Australia will be the initial focus of a new national program aimed at preventing family violence in multicultural communities.

The ‘Many Voices One Future: A Multicultural Approach to Preventing Family Violence’ was launched this week by the federal Assistant Minister for the Prevention of Family Violence Ged Kearney.

The program is based on eight years of successful work by migrant and refugee settlement agency AMES Australia in building capacity within Victorian migrant and refugee communities to prevent family violence.

The new program comes after an independent review of AMES’ work by consultants Myriad Global found the program was a “significant community-driven model of primary prevention that can set a new benchmark for equity and inclusion in violence prevention”.

And it’s launch comes as the South Australian Government releases the findings of South Australia’s Royal Commission into Domestic, Family and Sexual Violence.

The SA government has accepted seven of the commission’s 136 recommendations but will “examine” the rest and produce further responses.

Royal Commissioner Natasha Stott Despoja found that the domestic, family and sexual violence system in SA is fragmented, it's crisis-driven and it's siloed.

Among the recommendations are that the SA government create a standalone ministerial portfolio for domestic, family and sexual violence, it develop a 5-year statewide domestic, family and sexual violence strategy that includes the 4 pillars of prevention, early intervention, response, and recovery and healing, and it appoint a Lived Experience Advisory Group (or Groups) from the membership of the Lived Experience Advisory Networks to provide advice and expertise to the Minister for Domestic, Family and Sexual Violence.

AMES is investing $350,000 a year in the new national program that will roll out across the country, beginning in South Australia.

It will embed AMES’ existing model embedded in the heart of settlement, education and community life for newly arrived migrants and refugees.

The program will expand AMES’ community-led model, combining evidence-based pedagogy with deep cultural insights.

The model equips community leaders with the knowledge and resources to become advocates within their communities.

Participants in the program will engage in leadership courses tailored to their needs, ranging from 12-week intensive programs to targeted masterclasses aimed at fostering leadership development, critical discussion, self-reflection and a sense of community responsibility.

Launching the program, Assistant Minister Kearney said the program was a step forward in filling the gap in the prevention of violence.

“The program is very much part of what’s needed to tackle the problem of family violence. It is grass roots, community based, and it encourages people to be change agents,” Assistant Minister Kearney said.

AMES CEO Cath Scarth said the ‘Many Voice One Future’ program was an important preventative measure.

“It is like building a fence at the top of a cliff to prevent an ambulance being required at the bottom of the cliff,” Ms Scarth said.

“While tertiary services are important, it makes sense to promote preventative programs so that violence doesn’t happen in the first place,” she said.

Ms Scarth told the launch the program would be delivered in trusted environments such as English classes and community spaces. It would be co-designed by participants and create grassroots leadership and community ownership.

The program would be adaptable to diverse local contexts and responsive to intersectional needs, such as language, faith, migration stress, gender roles or experience of discrimination, she said.

It also aims to build national workforce capacity by building pathways for participants from diverse communities into the family and sexual violence sector.

The program includes in-language delivery in mixed-gender cohort settings. It is characterised by peer-led storytelling and trauma-informed facilitation.

Myriad Global consultant and newly appointed Chair of the Settlement Council of Australia Maria Dimopoulos told the launch the ‘Many Voices, One Future’ program was “a moment that really matters”.

“It is a nationally significant. Community driven model that reaches people in the early stages of settlement,” she said.

“It’s a model that has equity and inclusion at its very core and it’s proven to work. This program creates champions who go to transform conversations, challenge harmful norms and lead change in places that mainstream campaigns simply don’t reach,” Ms Dimopoulos said.

AMES family violence program graduate Manal Shebab said the AMES program had equipped her to start her own not for profit organisation working in family violence in her community.

“The training gave me a deep understanding of the complexities and nuances surrounding family violence particularly in the intersection of culture and faith. It also gave me the confidence to start my own not-for-profit organisation Sisters4Sisters in 2018.

“Since its inception, I’ve been an unapologetic advocate for change, challenging rigid ideologies, running awareness and preventions campaigns and creatively partnering with libraries, neighbourhood houses, Islamic societies.

“We saw a gap in resources addressing how to work with faith leaders, across all faiths, so we created a toolkit on preventing and address family violence,” Ms Shebab said.

“The AMES program has really enriched my world and practice, where I can go out and advocate and see a rippling effect because of the program,” she said.

Ms Shebbab said it was important to tailor programs specifically for diverse communities because every community has its different beliefs and practices as well as varying experiences and understandings of gender roles and family structures. Some of these can be really harmful and lead to family violence, she said.

Fellow graduate Arun Thomas said the program had challenged him in the best way possible.

“I learned that violence doesn’t begin with physical harm. It begins with gender inequality, disrespect, silence, and unchecked power,” Mr Thomas said.

“Leadership is not just about what you say, it’s what you’re willing to question and do. As a nurse and migrant, I’ve worked in homes, hospitals, and humanitarian settings. I thought I understood care. But this experience taught me that care without courage is incomplete.

“We must speak up, especially when it’s uncomfortable. I was deeply moved by the stories shared; stories of resilience, strength, and systems that still fail too many women. My commitment moving forward is simple: I will stop assuming intent is enough.

“I will start using every space I’m in – clinical, board, corporate, community – to question inequality and amplify underrepresented voices,” he said.

Recent research by the University of Wollongong found around a third of refugee women in Australia had experienced domestic violence, and many face multiple barriers in seeking help.

These barriers include fear of retribution, concerns about the consequences of disclosure, not wanting to break up the family and economic insecurity.

Refugee and migrant women face additional challenges, such as language barriers, lack of knowledge about Australian laws and services, visa insecurity and complex relationships with communities, the research found.

Chișinău, August 19, 2025 – Invest Moldova Agency, in partnership with the Public Property Agency (APP), has launched the 2025 Privatization Guide  – a practical, investor-oriented tool designed to streamline access to strategic state-owned assets in Moldova.

The guide provides a clear, structured overview of Moldova's privatization process, including applicable legislation, transaction methods, procedural steps, and post-acquisition responsibilities. Presented in an accessible Q&A format, the document serves as a reliable reference for investors interested in participating in transparent and competitive tenders for state assets.

“This guide is Moldova's invitation to investors around the world to engage confidently with our market. By offering clarity and predictability, we aim to accelerate private investment into strategic sectors of our economy,” said Natalia Bejan, Director of Invest Moldova Agency.

To further support investor engagement, a separate Handbook for Public Auctions is also available. This complementary publication focuses specifically on the public auction mechanism, detailing the bidding process from start to finish — including eligibility criteria, evaluation procedures, and submission guidelines.

Among the upcoming privatization offers are Zarea Hotel and the Glass Factory, two emblematic assets now open for acquisition. These listings mark the beginning of a new chapter in Moldova's investment landscape — focused on creation of high added value, and openness to international investors.

“We are committed to a transparent and investor-friendly approach to privatization. These tools are designed to make the process clear, professional, and attractive to both foreign and domestic capital.”

said Roman Cojuhari, Director General of the Public Property Agency.

Both the 2025 Privatization Guide and the Handbook for Public Auctions are available in English and can be accessed free of charge on the official website of the Invest Moldova Agency:
https://invest.gov.md/publications

·       Co-hosted by ATIDI, MUFG and NEXI, the event was held under the theme “Unlocking Japanese Private Sector Investment in Africa”

·       The discussions highlighted Africa's investment-readiness and the growing momentum for strategic, impactful Japanese-African cooperation.

·       The event also showcased the launch of Safaricom Telecommunications Ethiopia Plc, a major investment that stands as the single largest FDI in Ethiopia and one of the most significant Japanese-backed projects on the continent.

Tokyo, Japan, 19 August 2025 – In an effort to deepen economic ties between Japan and Africa, the African Trade & Investment Development Insurance (ATIDI), Mitsubishi UFJ Financial Group (MUFG), and Nippon Export and Investment Insurance (NEXI) co-hosted a high-level side event on the margins of the Ninth Tokyo International Conference on African Development (TICAD9), taking place in Yokohama, Japan. The event brought together senior government officials, investors, development finance institutions and private sector stakeholders, including leading Japanese companies, to explore actionable strategies for mobilizing more sustainable Japanese investment into Africa.

Japanese companies have been increasingly exploring Africa's high-growth markets across sectors such as infrastructure, telecommunications, manufacturing and energy. MUFG, as Japan's largest financial institution, has taken a strategic interest in Africa, participating in major infrastructure financings and supporting Japanese clients expanding into the region. NEXI, Japan's official export credit agency, became a shareholder of ATIDI in 2023, contributing USD15.1 million to ATIDI's capital base, reinforcing its long-term commitment to de-risking Japanese investments in Africa.

Under the theme “Unlocking Japanese Private Sector Investment in Africa”, the event featured two high-impact sessions. The first highlighted lessons learned from Japanese investments in Africa to date and discussed opportunities for more direct Japanese investment in Africa, with a focus on the landmark liberalization of Ethiopia's telecom sector. The session showcased the launch of Safaricom Telecommunications Ethiopia Plc (STE), a major investment that stands as the single largest FDI in Ethiopia and one of the most significant Japanese-backed projects on the continent. Through this flagship project the session shared insights into how foreign direct investment (FDI) plays a catalytic role in advancing large-scale infrastructure projects in Africa.

“Unlocking Africa's vast potential requires bold partnerships and innovative risk solutions. This collaboration with MUFG and NEXI demonstrates how strategic alliances can drive transformational investment. By mitigating risk and building investor confidence, we are not only enabling landmark projects like Safaricom Ethiopia but also paving the way for a new era of Japanese private sector engagement across the continent,” said Manuel Moses. Chief Executive Officer, ATIDI.

ATIDI played a pivotal role in enabling this milestone by issuing a 10-year Political Risk Insurance (PRI) policy to Sumitomo Corporation, a key Japanese investor in the STE consortium. The policy covers key political risks such as expropriation, currency inconvertibility and breach of contract, backed by NEXI's reinsurance support. This innovative risk solution exemplifies the growing synergy between ATIDI and NEXI in empowering Japanese companies to seize high-potential opportunities in Africa with greater confidence.

“Our collaboration with partners including ATIDI and MUFG has enabled us to provide diverse support for Japanese companies' businesses with Africa. We have been working closely with ATIDI which led to our reinsurance support for the remarkable telecommunications project in Ethiopia, our investment to ATIDI, and services tailored to Japanese companies such as the Japan Desk. NEXI has also strengthened our partnership with financial institutions in Japan to support Africa at times of an unexpected crisis, Covid-19. We are pleased to share our experiences in the event and will continue to engage in public-private partnerships to support Africa's further development,” said Atsuo Kuroda, Chairman and CEO, NEXI

The second session shifted the focus to unlocking institutional and private capital from Japan to power Africa's development agenda. Speakers delved into how de-risking mechanisms, blended finance models and public-private partnerships can drive large-scale investment in sectors such as infrastructure, energy and digital transformation. MUFG shared its experience in structuring cross-border investments, while ATIDI showcased its expanding range of risk mitigation instruments tailored to the needs of investors across the continent.

“As part of our continued commitment to fostering sustainable development across Africa and unlocking new investment opportunities for Japanese corporate clients, we are proud to collaborate with ATIDI and NEXI on this pivotal event. Together, we aim to explore practical pathways for increasing Japanese private sector engagement on the continent. This initiative supports the objectives of TICAD 9, with a shared focus on advancing quality infrastructure, driving the energy transition, and enhancing public-private partnerships,” said Ankit Khandelwal, Director, Head of Africa for sovereigns, development finance institutions (DFIs) and blended finance, MUFG.

Since joining ATIDI, NEXI has worked to expand its support for Japanese firms operating in African markets, with a growing pipeline of co-insured projects.

ATIDI and MUFG MOU

In parallel, during the TICAD meeting, ATIDI and MUFG signed a Memorandum of Understanding (MoU) which will promote collaboration in providing innovative risk mitigation solutions for Japanese investors in Africa. As MUFG looks to bring international and Japanese liquidity to Africa through their work with sovereigns, DFI and blended finance, ATIDI will support with insurance and guarantees to encourage investment, supporting development across the African continent. ATIDI's robust portfolio already covers 72 policies across several African countries, supporting transactions valued at over USD5.4 billion, with MUFG arranged financing exposures totalling approximately USD1.86 billion.

As Africa charts a path toward inclusive and sustainable growth and in line with TICAD9's theme – “Co-create Innovative Solutions with Africa”- the side event offered a timely opportunity to reflect on how to deepen economic ties between Japan and the continent. Through innovation, strategic partnerships and shared vision, ATIDI, MUFG and NEXI are committed to transforming African potential in to lasting prosperity, creating a resilient future powered by investment, collaboration and opportunity.

Notes:

About ATIDI

ATIDI was founded in 2001 by African States to cover trade and investment risks of companies doing business in Africa. The organization notably provides Political Risk, Credit Insurance and Surety Insurance. Since inception, ATIDI has supported USD88 billion worth of investments and cross border trade into Africa. It is rated A/Stable by Standard & Poor's and A2/Stable by Moody's, which reflects the organization's robust financial position and strong risk management practices. In recognition of its growing impact, ATIDI was named the Development Finance Institution (DFI) of the Year at the 2025 African Banker Awards.

For more on ATIDI, visit: www.atidi.africa

Media registration link: https://www.atidi.africa/media-kit/

About MUFG

Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world's leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,000 locations in more than 40 countries. The Group has about 150,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world's most trusted financial group” through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG's shares trade on the Tokyo, Nagoya, and New York stock exchanges.

For more information, visit https://www.mufg.jp/english.

About NEXI

NEXI is an export credit agency, established and fully owned by the Japanese government. We provide insurance as a risk mitigation tool for Japanese companies' cross-border trade, investment, and financing. We promote the overseas expansion of Japanese businesses by covering risk that are not available by commercial insurance. As of March 2025, NEXI's outstanding commitment to Africa is 1.5 trillion yen, and we provide insurance cover for approximately 30% of exports from Japan to Africa. In 2023, we became a member of ATIDI and we continue to strengthen our partnership to further support Africa's social economic development agendas.

More information is available on our website: NEXI Nippon Export and Investment Insurance: https://www.nexi.go.jp/en/index.html

A new national program aimed at preventing family violence in multicultural communities was launched this week by the federal Assistant Minister for the Prevention of Family Violence Ged Kearney.

The ‘Many Voices One Future: A Multicultural Approach to Preventing Family Violence’ program is based on eight years of successful work by migrant and refugee settlement agency AMES Australia in building capacity within Victorian migrant and refugee communities to prevent family violence.

The new program comes after an independent review of AMES’ work by consultants Myriad Global found the program was a “significant community-driven model of primary prevention that can set a new benchmark for equity and inclusion in violence prevention”.

AMES is investing $350,000 a year in the new national program that will roll out across the country, beginning in South Australia.

It will embed AMES’ existing model embedded in the heart of settlement, education and community life for newly arrived migrants and refugees.

The program will expand AMES’ community-led model, combining evidence-based pedagogy with deep cultural insights.

The model equips community leaders with the knowledge and resources to become advocates within their communities.

Participants in the program will engage in leadership courses tailored to their needs, ranging from 12-week intensive programs to targeted masterclasses aimed at fostering leadership development, critical discussion, self-reflection and a sense of community responsibility.

Launching the program, Assistant Minister Kearney said the program was a step forward in filling the gap in the prevention of violence.

“The program is very much part of what’s needed to tackle the problem of family violence. It is grass roots, community based, and it encourages people to be change agents,” Assistant Minister Kearney said.

AMES CEO Cath Scarth said the ‘Many Voice One Future’ program was an important preventative measure.

“It is like building a fence at the top of a cliff to prevent an ambulance being required at the bottom of the cliff,” Ms Scarth said.

“While tertiary services are important, it makes sense to promote preventative programs so that violence doesn’t happen in the first place,” she said.

Ms Scarth told the launch the program would be delivered in trusted environments such as English classes and community spaces. It would be co-designed by participants and create grassroots leadership and community ownership.

The program would be adaptable to diverse local contexts and responsive to intersectional needs, such as language, faith, migration stress, gender roles or experience of discrimination, she said.

It also aims to build national workforce capacity by building pathways for participants from diverse communities into the family and sexual violence sector.

The program includes in-language delivery in mixed-gender cohort settings. It is characterised by peer-led storytelling and trauma-informed facilitation.

Myriad Global consultant and newly appointed Chair of the Settlement Council of Australia Maria Dimopoulos told the launch the ‘Many Voices, One Future’ program was “a moment that really matters”.

“It is a nationally significant. Community driven model that reaches people in the early stages of settlement,” she said.

“It’s a model that has equity and inclusion at its very core and it’s proven to work. This program creates champions who go to transform conversations, challenge harmful norms and lead change in places that mainstream campaigns simply don’t reach,” Ms Dimopoulos said.

AMES family violence program graduate Manal Shebab said the AMES program had equipped her to start her own not for profit organisation working in family violence in her community.

“The training gave me a deep understanding of the complexities and nuances surrounding family violence particularly in the intersection of culture and faith. It also gave me the confidence to start my own not-for-profit organisation Sisters4Sisters in 2018.  

“Since its inception, I’ve been an unapologetic advocate for change, challenging rigid ideologies, running awareness and preventions campaigns and creatively partnering with libraries, neighbourhood houses, Islamic societies.

“We saw a gap in resources addressing how to work with faith leaders, across all faiths, so we created a toolkit on preventing and address family violence,” Ms Shebab said.

“The AMES program has really enriched my world and practice, where I can go out and advocate and see a rippling effect because of the program,” she said.

Ms Shebbab said it was important to tailor programs specifically for diverse communities because every community has its different beliefs and practices as well as varying experiences and understandings of gender roles and family structures. Some of these can be really harmful and lead to family violence, she said.  

Fellow graduate Arun Thomas said the program had challenged him in the best way possible.

“I learned that violence doesn’t begin with physical harm. It begins with gender inequality, disrespect, silence, and unchecked power,” Mr Thomas said.

“Leadership is not just about what you say, it’s what you’re willing to question and do. As a nurse and migrant, I’ve worked in homes, hospitals, and humanitarian settings. I thought I understood care. But this experience taught me that care without courage is incomplete.

“We must speak up, especially when it’s uncomfortable. I was deeply moved by the stories shared; stories of resilience, strength, and systems that still fail too many women. My commitment moving forward is simple: I will stop assuming intent is enough.

“I will start using every space I’m in – clinical, board, corporate, community – to question inequality and amplify underrepresented voices,” he said.

Recent research by the University of Wollongong found around a third of refugee women in Australia had experienced domestic violence, and many face multiple barriers in seeking help.

These barriers include fear of retribution, concerns about the consequences of disclosure, not wanting to break up the family and economic insecurity.

Refugee and migrant women face additional challenges, such as language barriers, lack of knowledge about Australian laws and services, visa insecurity and complex relationships with communities, the research found.

Central Darfur, 20 August 2025 – Médecins Sans Frontières/Doctors Without Borders (MSF) has been forced to reduce its teams and suspend all activities at the MSF supported hospital in Central Darfur state, Sudan, following a violent armed assault inside the facility on the night of 16 August. 

The world’s first dedicated independent accreditation has been launched for the Business Process Outsourcing (BPO) sector which will bring more transparency and support for organisations searching for a South African-based BPO partner.

Developed by GBPO Solutions, and driven through its founder and industry expert David Neale, the GBPO Solutions Accreditation provides companies procuring BPO support, such as contact centre services in the utilities, retail, financial services and telecommunications sectors, with the confidence they are partnering with a transparent and trusted organisation.  

The accreditation provides assurances to potential partners that the BPO’s proposition has been independently validated, covering critical areas such as their people, processes, policies and technology, even down to their certifications and continuity planning.

South Africa has grown to be a central hub for global BPO operations in recent years.

David Neale, CEO of GBPO Solutions said: “The global BPO market has been thriving now for several years and that has attracted a variety of new entrants, especially through offshore models.

“However, having spent over 20 years in the sector, it’s clear that the route to finding a BPO partner hasn’t changed since the turn of the century. It’s a stale model and doesn’t provide those looking for a trusted BPO partner with the full confidence they are making the right decision with who their ideal partner may be beyond the sales pitch.

“The Accreditation is here to completely change that approach, and ensure BPOs meet meticulous standards and deliver full transparency. It provides something that the sector has never had – an independent validation which outsourcing companies can proudly stand behind.

“Ultimately, we see that the best and most successful partnerships are those which are built over the long-term, and where there is a track record of excellence around compliance and standards. We look forward to embedding the new accreditation further into the sector over the coming months and years.”

Mr Neale added that a number of well-known global BPO providers have already been through the GBPO Solutions Accreditation process, with more looking to achieve the industry kitemark. Those BPOs already accredited as members include; TP, Ant, Outworks, Cadence, Quantanite and Bourne Global.

The GBPO website is available through www.gbposolutions.com  

August 18 2025 – Global stock markets are primed for a sharp advance if talks at the White House between President Donald Trump and Ukrainian President Volodymyr Zelenskiy yield even modest progress.

This is the bullish prediction from Nigel Green, CEO of deVere Group, one of the world's largest independent financial advisory and asset management organizations, as European leaders, including German Chancellor Friedrich Merz, French President Emmanuel Macron and British Prime Minister Keir Starmer, head with Ukraine's Volodymyr Zelenskiy to Washington to meet Donald Trump at the White House to discuss a peace deal.

The lack of fresh sanctions following Trump's Alaska summit with Vladimir Putin has steadied sentiment, but a constructive signal in Washington could be the trigger for a decisive risk rally.

European futures rose 0.2% Monday and S&P 500 contracts added 0.1%, tracking earlier gains in Asia, where Indian equities posted their strongest move in more than three months and Shanghai indices touched decade highs.

Treasuries edged higher, pushing the 10-year yield to 4.30%. Gold firmed 0.4%, crude oil stabilised as disruption concerns eased, and cryptocurrencies slipped.

Nigel Green, chief executive of deVere Group, says: “Equities are set up for a powerful move.

“Investors have priced in confrontation, not cooperation. If Washington produces even a hint of forward motion, the S&P 500 can punch higher, Europe's indices will accelerate, and emerging market currencies will surge as safe-haven demand unwinds.”

He continues: “The market is wired for disappointment, which creates outsized upside if that disappointment is avoided.

“The sheer weight of cash on the sidelines means any sign of progress will not just spark a rally, it could reshape asset allocation across the board.”

Fund positioning highlights the risk of being caught off guard. Flows into European equities remain subdued, while defensive cash levels are elevated. A political breakthrough, however limited, would force managers to “re-enter risk quickly, fuelling momentum.”

Nigel Green notes: “Gold and Treasuries would lose traction as havens are sold. Oil would settle into a narrower range without sanctions risk. The dollar would soften as appetite returns for higher-yielding currencies. Bitcoin, which dipped at the start of the week, would likely catch a second wind.

“Risk sentiment and digital assets have been moving in tandem. Confidence in dialogue would push Bitcoin back onto an upward trajectory.”

The timing is critical, coming ahead of the Federal Reserve's Jackson Hole retreat.

Chair Jerome Powell is expected to outline the case for a September rate cut following weaker US data, but with monetary policy largely priced in, the geopolitical stage could dictate near-term market direction.

Nigel Green adds: “Markets are not waiting for perfect solutions, they're waiting for a signal that diplomacy is alive.

“Such a single signal can reset risk, reframe valuations, and redirect flows across equities, bonds, commodities and crypto.”

He concludes: “If the White House meeting alters the tone, even subtly, it won't just drive a temporary rally.

“It'll mark the start of a broader repositioning by global investors who have been frozen on the sidelines. This week's talks carry the potential to change the trajectory of markets well beyond the next few days.”

deVere Group is one of the world's largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of offices around the world, more than 80,000 clients, and $14bn under advisement.

In July, private-sector businesses in Switzerland expect nominal wages to grow by an average of 1.3 per cent in a year's time. If this is the case, wages are likely to rise by less than 1 per cent after allowing for inflation. These are the findings of a KOF survey of around 8,000 firms on their wage forecasts for the next twelve months.

In July, KOF surveyed around 8,000 companies in the private sector about their wage expectations as part of its quarterly Business Tendency Surveys. Some 4,500 firms took part in the survey. Their forecasts for nominal wage growth have fallen continuously over the past three years. In July of last year, for example, expected nominal wage growth was still 1.6 per cent. This is 0.3 percentage points more than in the latest survey.

On the one hand, this decline is likely to reflect the decreasing shortage of skilled workers in the Swiss labour market. On the other hand, it probably also reflects the sharp fall in consumer price inflation in Switzerland in recent months. If inflation falls over the course of the year, there is less need to adjust wages the following year in line with past inflation. As these figures were collected before 1 August, however, this decline is not due to the high industrial tariffs that the United States is now imposing on Swiss firms. These tariffs are likely to have further reduced wage growth forecasts – particularly in industrial companies that are heavily focused on the US.

Firms expect to see little real wage growth

Nominal wage growth is less important for the purchasing power of wage earners than real wage growth – i.e. the growth in wages after allowing for consumer price inflation over the same period. The Business Tendency Surveys also asked the companies surveyed what inflation they were expecting over the next twelve months. If their forecasts of a price increase of around 1 per cent were correct, nominal wage growth would only be enough for a meagre rise of 0.2 per cent in real wages. The situation would be somewhat better for the wallets of wage earners if the inflation rate of 0.5 per cent forecast by KOF were to materialise. At this level, nominal wage growth of 1.3 per cent would result in real wage growth of 0.8 per cent in a year's time.

The majority of businesses expect to see wage growth of between 0.5 per cent and 2 per cent

Compared with previous surveys, there are only fairly minor differences between the firms surveyed. Most of the survey respondents expect to see company wage growth of between 0.5 per cent and 2 per cent. The differences in wage expectations between sectors were also greater in previous surveys. Businesses in wholesale (0.9 per cent), manufacturing (1.1 per cent) and retail (1.1 per cent) expect to see comparatively low nominal wage growth. Firms in hospitality (1.5 per cent) and construction (1.7 per cent) are forecasting relatively high wage growth. The construction industry is the only sector surveyed in which companies expect to see higher nominal and real wage growth than they did a year ago.