ONE OF THE WORLD’S WEALTHIEST

One Of The World's WEALTHIEST COUNTRIES

For centuries Switzerland has adhered to a policy of armed neutrality in global affairs, which has given it the access and political stability to become one of the world's wealthiest countries, with an efficient market economy

Its standard of living, industrial productivity and quality of 7.5% of the population suffers from income poverty, but education and health care systems are among the highest only 0.9% experienced it for four years or more. in Europe. Economic growth slowed to 0.9% in 2019 (IMF estimates), due to a global economic slowdown, especially an MAIN SECTORS OF INDUSTRY economic downturn in Germany, its biggest trading partner, and Switzerland is one of the most competitive economies in weak domestic consumption. The biggest risks for the Swiss the world due to its strong added value services, its special economy stem from Italy’s fiscal policy, a significant cooling ized industries and a motivated and highly skilled workforce of the European economy and the possibility of a global trade of 4.9 million people out of a 8.5 million population. Agricul war, which could impact Switzerland’s externally-oriented ture represents 0.6% of GDP and employs 3% of the active economy, appreciating the franc and eroding competitive population. The primary agricultural products are livestock and ness in less-productive sectors. According to the updated dairy products, though the country is also home to over 9,000

IMF forecasts from 14 th April 2020, due to the outbreak of the wineries. Swiss authorities grant numerous direct subsidies

COVID-19, GDP growth is expected to fall to -6% in 2020 and to farmers in order to meet strict ecological criteria, such as pick up to 3.8% in 2021, subject to the post-pandemic global soil protection. The country has hardly any mineral resources. economic recovery. Despite the small size of the overall

Public debt continues to drop (38.6% Switzerland is one of the most agricultural industry, organic farming of GDP in 2019) and is expected to follow a declining trend in the coming years. competitive economies in the has experienced considerable growth (14.5% of farm land, according to Federal

However, budget surplus decreased world due to its strong added Statistical Office), but with big cantonal slightly to 1% in 2019 and is expected to drop to 0.4% in 2020 and 2021. Price inflation is estimated by IMF at 0.4% value services, its specialized industries and a motivated differences. Industry employs 20.1% of the workforce and constitutes 25% of GDP. in 2019 and should remain modest over and highly skilled workforce of Switzerland is renowned worldwide for the next two years (-0.4% and 0.6% respectively), which are well below the 4.9 million people out of the high quality of its manufactured products, which include watches, mo

Swiss National Bank objective of 2% a 8.5 million population tors, generators, turbines and diverse and influenced by the outbreak of the high-technology products. The strong

COVID-19. Household consumption is gradually picking up industry sector is driven by large exporting groups. Basel, in (1.2% in 2019 and 1.5% in 2020, according to OECD estimates). particular, is home to a very dynamic and powerful chemical

Switzerland remains high atop the list of preferred tax havens and pharmaceutical industry. Electricity is generated chiefly due to its low taxation of foreign corporations and individuals. from hydraulic and nuclear power. Hydroelectric resources

The flow of overseas wealth to the country has come in for provide almost two-thirds of the country’s energy. much criticism in past years, due to concerns over tax eva The service sector represents 71.3% of GDP and employs sion, and in 2018, the Tax Justice Network, an international 76.8% of the workforce. The banking sector alone represents group campaigning for transparency, chose Switzerland as 9.1% of the GDP and is in a moderately good shape despite con the capital of bank secrecy in the world. However, after signing siderable headwinds. Well-developed and globally competitive an agreement on the automatic exchange of information with sectors, such as banking, insurance, freight and transport, have the European Union, Switzerland put an end to bank secrecy in contributed to the development of international trade across 2019. Since then, Swiss banks are required to share their clients’ Switzerland. Tourism, which adds significantly to the economy information with foreign tax authorities. Finally, Switzerland is (more than 21 million foreign visitors in 2018, according to Swiss one of the most environmental friendly countries in the world, Tourism Federation), helps to balance Switzerland’s trade deficit. and pledged to phase out nuclear power by 2034 and reduce energy consumption by 35%.

A weakening of the Swiss franc helped boost economic growth, creating more jobs. The Swiss unemployment rate fell to 2.3% in 2019 and is expected to maintain the similar low level in the coming years - 2.7% in 2020 and 2.6% in 2021 - despite the negative economic impact of the COVID-19 pandemic (April 2020 World Economic Outlook IMF). Ac cording to the State Secretariat for Economic Affairs (SECO), all of Switzerland’s French-speaking cantons saw unemployment decline, however the large difference with

German-speaking Switzerland remained (3.6% vs 2.2%).