Switzerland

Capital: Bern

Local time:
It is %T:%M %A in Geneva, Bern, Lausanne

Exchange rate on :

GDP growth rate: 1.8% in 2012

FDI stock: 278 155 million USD in 2007

Country risk: See the country risk analysis from Switzerland provided by Ducroire.

Economic trends

Switzerland has a highly successful market-based economy. Its standard of living, its industrial productivity, the quality of its education system, and its health-care system are amongst the highest in Europe.

In 2006 and in 2007, GDP growth rate was rather high. However, the sharp decline of economic activity is expected to continue until 2010, due to the decrease in global trade. Furthermore, the country, which based a big part of its economic development on financial services, is highly dependent on healthy stock markets. A slow recovery during 2010 should be sustained by the gradual improvement of exports, especially towards East Asia.
The unemployment rate is less than half of the average in European Union countries, however it should nevertheless increase slightly during the coming years (it is expected to reach 5% in 2010). As for inflation, it remains under control. The economy is heavily dependent on foreign workers, who account for approximately 25% of the labour force.

Taking into account the low use of capabilities and the deflation risk, the guiding interest rates are expected to remain near zero. New budget recovery measures will reduce the deflation risk. In order to avoid unemployment taking root, the country should improve regional incentives by rapidly finding jobs for the unemployed, and ensuring there are enough training opportunities.

Main branches of industry

Agriculture contributes less than 2% to the GDP and employs less than 5% of the active population (only 10% of the land is suitable for cultivation). The primary agricultural products are livestock and dairy products. Swiss authorities grant numerous direct subsidies to farmers in order to meet strict ecological criteria such as soil protection. Organic farming is booming. There are hadly any mineral resources on Swiss soil.
Electricity is generated chiefly from hydraulic and nuclear power. Switzerland is renouned worldwide for the high quality of its manufactured products which include watches, motors, generators, turbines, and diverse high-technology products. Located in Basel, the chemical and pharmaceutical industry exports all over the world.
Well developed and globally competitive sectors like banking, insurance, freight and transport, substantially contribute to the development of international trade across Switzerland. Tourism, which adds significantly to the economy, helps to balance Switzerland's trade deficit.

International trade

The share of foreign trade in the country’s GDP is more than 80%. The European Union (EU) is Switzerland's major trade partner, accounting for two-thirds of its total foreign trade. On 1st of June 2002, agreements were signed between the EU and Switzerland regarding seven main trade sectors. Exports account for half of the country’s GDP. Switzerland's two main clients of are the United States and the European Union.

Learn more

For more information on Switzerland

The Country Profiles of the Foreign and Commonwealth Office

Countries information of the UK Trade and Investment Website

For more international news

Business News of the British Chamber

For more advices

The business advices of the Foreign and Commonwealth Office

Are You Ready to Export? - The online test of the UK Trade and Investment Website