Switzerland Economy Profile 2012

The Swiss economy has always been highly integrated into the global economy: its per capita import and export volumes and its import and export rate (as a percentage of GDP) are among the highest in the world. Exports play a particularly important economic role for a small country such as Switzerland.

Switerzland’s main partners in the cross-border trade of goods are the industrialised countries; 87.6% of its imports come from these countries and 76.5% of its exports go to them (status 2008). Trade with the EU plays a particularly important role: it accounts for 78.8% of imports and 60.9% of exports. Switzerland’s most important trading partner is Germany, followed by Italy, France and the United States.
 

• * Number of enterprises: In 2008, some 310,000 private enterprises were counted in Switzerland. That is 11,300 more than in 2005 and 3000 more than in 2001.
• * Size of enterprises: More than 99% of enterprises in Switzerland are SMEs: small and medium-sized enterprises, i.e. enterprises with fewer than 250 employees (calculated as full-time equivalents); about 87% are micro-enterprises, i.e. with fewer than 10 employees. The distribution of enterprises by enterprise size has not changed between 2001 and 2008. The average size of SMEs has also remained largely stable: in 2008, it was 11 employees.
• * The secondary sector under pressure: Production in the secondary sector (excluding construction) fell sharply during the recessionary years 1991 and 1993, and stagnated in 1995 and 1996; towards the end of the 1990s, production increased markedly, but it fell sharply again in 2002 and 2003. After 2004, production figures were again in positive territory. But following the global financial crisis, the course of business of Swiss industry registered a marked decline at the end of 2008. The secondary sector (excluding construction) registered an overall growth in production of 52% between 1990 and 2008.
• * Labour costs: In 2006, labour costs in industry and much of the service sector in Switzerland were, on average, CHF 53.18 (€33.8) per hour of work performed.

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. 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, the government agreed to conform to OECD regulations on administrative assistance in tax matters, including tax evasion. The government has renegotiated its double taxation agreements with numerous countries, including the US, to incorporate the OECD standard. Parliament will vote on the first five negotiated agreements, including the agreement with the US, in March 2010. These agreements, if passed by Parliament, will be subject to public referendum. In 2009, Swiss financial regulators ordered the country's largest bank to reveal at Washington's behest the names of US account-holders suspected of using the bank to commit tax fraud. These steps will have a lasting impact on Switzerland's long history of bank secrecy.