Switzerland: Economy Overview

02 February 2010
by Ina Dimireva -- last modified 02 February 2010

Switzerland is a peaceful, prosperous, and modern market economy with low unemployment, a highly skilled labor force, and a per capita GDP among the highest in the world.

Economy Overview

Switzerland's economy benefits from a highly developed service sector, led by financial services, and a manufacturing industry that specializes in high-technology, knowledge-based production. In recent years the Swiss have brought their economic practices largely into conformity with the EU's, in order to enhance their international competitiveness, but some trade protectionism remains, particularly for its small agricultural sector. The global financial crisis and resulting economic downturn put Switzerland in a recession in 2009 as global export demand stalled. The Swiss National Bank during this period effectively implemented a zero-interest rate policy in a bid to boost the economy and prevent appreciation of the franc. Switzerland's economy will probably experience modest GDP growth in 2010, when Bern is scheduled to implement a third fiscal stimulus program, but its prized banking sector has recently faced significant challenges. The country's largest banks suffered sizable losses in 2008-09, leading its largest bank to accept a government rescue deal in late 2008. Switzerland has also come under increasing pressure from individual neighboring countries, the EU, the US, and international institutions to reform its banking secrecy laws. Consequently, its government is negotiating measures that would improve transparency within its banking sector and increase cooperation with foreign tax authorities. In 2009 Swiss financial regulators ordered the country's largest bank to reveal at Washington's behest the names of US accountholders suspected of using the bank to commit tax fraud. Bern also has recently signed dual taxation agreements with more than ten countries to improve information exchange. These steps will have a lasting impact on Switzerland's long history of bank secrecy.

GDP (purchasing power parity):

$316.1 billion (2009 est.)
country comparison to the world: 38
$321.9 billion (2008 est.)
$316.2 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate):

$484.1 billion (2009 est.)

GDP - real growth rate:

-1.8% (2009 est.)
country comparison to the world: 141
1.8% (2008 est.)
3.6% (2007 est.)

GDP - per capita (PPP):

$41,600 (2009 est.)
country comparison to the world: 18
$42,500 (2008 est.)
$41,900 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector:

agriculture: 1.5%
industry: 34%
services: 64.5% (2003 est.)

Labor force:

4.08 million (2009 est.)
country comparison to the world: 87

Labor force - by occupation:

agriculture: 3.9%
industry: 22.8%
services: 73.2% (2005)

Unemployment rate:

3.7% (2009 est.)
country comparison to the world: 36
2.768% (2007 est.)

Investment (gross fixed):

21.1% of GDP (2009 est.)
country comparison to the world: 76

Budget:

revenues: $166.4 billion
expenditures: $172.6 billion (2009 est.)

Inflation rate (consumer prices):

-0.6% (2009 est.)
country comparison to the world: 13
2.4% (2008 est.)

Commercial bank prime lending rate:

3.34% (31 December 2008)
country comparison to the world: 143
3.15% (31 September 2007)

Stock of domestic credit:

$864.4 billion (31 December 2008)
country comparison to the world: 13
$855.4 billion (31 December 2007)

Agriculture - products:

grains, fruits, vegetables; meat, egg

Industries:

machinery, chemicals, watches, textiles, precision instruments, tourism, banking, and insurance

Industrial production growth rate:

6.5% (2009 est.)
country comparison to the world: 13

Oil - production:

3,244 billion bbl/day (2008 est.)
country comparison to the world: 100

Natural gas - production:

0 cu m (2008 est.)
country comparison to the world: 127

Current account balance:

$79.18 billion (2009 est.)
country comparison to the world: 4
$41.21 billion (2008 est.)

Exports:

$190.1 billion (2008 est.)
country comparison to the world: 19
$241.3 billion (2007 est.)

Exports - commodities:

machinery, chemicals, metals, watches, agricultural products

Exports - partners:

Germany 19.8%, US 9.6%, Italy 8.7%, France 8.6%, UK 5.2% (2008)

Imports:

$177.2 billion (2009 est.)
country comparison to the world: 19
$227.4 billion (2008 est.)

Imports - commodities:

machinery, chemicals, vehicles, metals; agricultural products, textiles

Imports - partners:

Germany 33.3%, Italy 11%, France 9.4%, US 5.8%, Netherlands 4.6%, Austria 4% (2008)

Debt - external:

$1.339 trillion (31 December 2009 est.)
country comparison to the world: 10
$1.305 trillion (31 December 2008 est.)

Stock of direct foreign investment - at home:

$395.6 billion (31 December 2009 est.)
country comparison to the world: 11
$405.1 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad:

$731.6 billion (31 December 2009 est.)
country comparison to the world: 7
$726.3 billion (31 December 2008 est.)

Exchange rates:

Swiss francs (CHF) per US dollar - 1.1081 (2009), 1.0774 (2008), 1.1973 (2007), 1.2539 (2006), 1.2452 (2005)

Source: CIA - The World Factbook