| abstract
| - Switzerland has a stable, prosperous and high-tech economy. It 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 (and indeed one of the highest in the world). The Swiss franc remains one of the world's strongest currencies with the lowest inflation rate (rising to an estimated 0.7% for 2011). In fact, Switzerland holds the record as being the country with the lowest rate of inflation for both the 19th and 20th century (i.e. when viewed from both a short and long-run perspective): since 1880 Swiss annual inflation has on average been a mere 2.2%, to be compared to 2.6% in the United States which is the closet contender. Likewise, in an international comparison with 13 other OECD countries since 1880, Switzerland once again comes out on top with an annual average inflation rate of a mere 1.5% (excluding the years of the two world wars and their immediate aftermath). Indeed, even focusing on the period following the creation of the Swiss National Bank and Switzerland is again the best performer, with an average inflation of 2%. If adjusted for purchasing power parity, Switzerland ranks eleventh in the world in terms of GDP per capita, according to the CIA World Factbook (ranking just behind a few oil-producing countries and microstates which act as tax-havens with no robust manufacturing sector). The World Economic Forum's Global Competitiveness Report currently ranks Switzerland's economy as the most competitive in the world. For much of the 20th century, Switzerland was the wealthiest country in Europe by a considerable margin. This trend continues into the 21st century: in 2010, the Global Wealth Report by Credit Suisse Research Institute found that Switzerland has the highest average wealth per adult at $372,692, followed by Norway, Australia and Singapore at $326,530, $320,909 and $255,488 respectively, with wealth defined by the value of financial and non-financial (such as real estate) assets. In 2005 the median household income in Switzerland was an estimated 95,000 SWF, the equivalent of roughly 100,000 USD (as of December 2010) in nominal terms. Switzerland is home to several large multinational corporations. The largest Swiss companies by revenue are Glencore, Nestlé, Novartis, Hoffmann-La Roche, ABB and Adecco. Also notable are UBS AG, Zurich Financial Services, Credit Suisse, Swiss Re, and The Swatch Group. Switzerland is ranked as having one of the most powerful economies in the world. Chemicals, health and pharmaceutical, measuring instruments, musical instruments, real estate, banking and insurance, tourism, and international organisations are important industries in Switzerland. 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 exported goods. Around 3.8 million people work in Switzerland. Switzerland has a more flexible job market than neighboring countries and the unemployment rate is very low. Unemployment rate increased from a low of 1.7% in June 2000 to a peak of 4.4%, as of December 2009. Population growth from net immigration is quite high, at 0.52% of population in 2004. Foreign citizen population is 21.8% as of 2004, about the same as in Australia. GDP per hour worked is the world's 17th highest, at 27.44 international dollars in 2006. [ ]Switzerland has an overwhelmingly private sector economy and low tax rates by the Western World standards; overall taxation is one of the smallest of developed countries. Switzerland is an easy place to do business; Switzerland currently ranks 27th 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 harmonisation 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. 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 Switzia are minimal and Switzerland has free trade agreements worldwide. Switzerland is a member of the European Free Trade Association (EFTA).
|
![[RDF Data]](/fct/images/sw-rdf-blue.png)