Swiss Company Registration Service
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Swiss Economy Overview
Switzerland has a stable, prosperous and high-tech economy and enjoys great wealth, being ranked as the wealthiest country in the world in per capita in multiple rankings. In 2011 it was ranked as the wealthiest country in the world in per capita terms (with "wealth" being defined to include both financial and non-financial assets), while the 2013 Credit Suisse Global Wealth Report showed that Switzerland was the country with the highest average wealth per adult in 2013. It has the world's nineteenth largest economy by nominal GDP and the thirty-sixth largest by purchasing power parity. It is the twentieth largest exporter, despite its size. Switzerland has the highest European rating in the Index of Economic Freedom 2010, while also providing large coverage through public services. The nominal per capita GDP is higher than those of the larger Western and Central European economies and Japan. If adjusted for purchasing power parity, Switzerland ranks 8th in the world in terms of GDP per capita, according to the World Bank and IMF (ranked 15th according to the CIA Worldfactbook).
The World Economic Forum's Global Competitiveness Report currently ranks Switzerland's economy as the most competitive in the world, while ranked by the European Union as Europe's most innovative country. For much of the 20th century, Switzerland was the wealthiest country in Europe by a considerable margin (by GDP–per capita). In 2007 the gross median household income in Switzerland was an estimated 137,094 USD at Purchasing power parity while the median income was 95,824 USD. Switzerland also has one of the world's largest account balances as a percentage of GDP.
Switzerland is home to several large multinational corporations. The largest Swiss companies by revenue are Glencore, Gunvor, Nestlé, Novartis, Hoffmann-La Roche, ABB, Mercuria Energy Group and Adecco. Also, notable are UBS AG, Zurich Financial Services, Credit Suisse, Barry Callebaut, Swiss Re, Tetra Pak, The Swatch Group and Swiss International Airlines. Switzerland is ranked as having one of the most powerful economies in the world.
Swiss Economy--- Manufacturing sector
Switzerland's most important economic sector is manufacturing. Manufacturing consists largely of the production of specialist chemicals, health and pharmaceutical goods, scientific and precision measuring instruments and musical instruments. The largest exported goods are chemicals (34% of exported goods), machines/electronics (20.9%), and precision instruments/watches (16.9%). Exported services amount to a third of exports. The service sector–especially banking and insurance, tourism, and international organisations–is another important industry for Switzerland.
Swiss Economy---Population
Around 3.8 million people work in Switzerland; about 25% of employees belonged to a trade union in 2004. Switzerland has a more flexible job market than neighbouring countries and the unemployment rate is very low. The unemployment rate increased from a low of 1.7% in June 2000 to a peak of 4.4% in December 2009. Population growth from net immigration is quite high, at 0.52% of population in 2004. The foreign citizen population was 21.8% in 2004, about the same as in Australia. GDP per hour worked is the world's 16th highest, at 49.46 international dollars in 2012.
Swiss Private Sector
Switzerland has an overwhelmingly private sector economy and low tax rates by Western World standards; overall taxation is one of the smallest of developed countries. Switzerland is a relatively easy place to do business, currently ranking 28th of 178 countries in the Ease of Doing Business Index. The slow growth Switzerland experienced in the 1990s and the early 2000s has brought greater support for economic reforms and harmonization with the European Union. According to Credit Suisse, only about 37% of residents own their own homes, one of the lowest rates of home ownership in Europe. Housing and food price levels were 171% and 145% of the EU-25 index in 2007, compared to 113% and 104% in Germany.
The Swiss Federal budget had a size of 62.8 billion Swiss francs in 2010, which is an equivalent 11.35% of the country's GDP in that year; however, the regional (canton) budgets and the budgets of the municipalities are not counted as part of the federal budget and the total rate of government spending is closer to 33.8% of GDP. The main sources of income for the federal government are the value-added tax (33%) and the direct federal tax (29%) and the main expenditure is located in the areas of social welfare and finance & tax. The expenditures of the Swiss Confederation have been growing from 7% of GDP in 1960 to 9.7% in 1990 and to 10.7% in 2010. While the sectors social welfare and finance & tax have been growing from 35% in 1990 to 48.2% in 2010, a significant reduction of expenditures has been occurring in the sectors of agriculture and national defense; from 26.5% in to 12.4% (estimation for the year 2015).
Swiss Economy--- Agricultural sector
Agricultural protectionism—a rare exception to Switzerland's free trade policies—has contributed to high food prices. Product market liberalisation is lagging behind many EU countries according to the OECD. Nevertheless, domestic purchasing power is one of the best in the world. Apart from agriculture, economic and trade barriers between the European Union and Switzerland are minimal and Switzerland has free trade agreements worldwide. Switzerland is a member of the European Free Trade Association (EFTA).
Contact Us
For further queries about investment in Switzerland, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143422, 86-755-82143512, or emailing to anitayao@citilinkia.com