Introduction to Its Economy

Switzerland is a country in central Europe, about two times the size of New Jersey.   There’s a population of about 8,179,294.  German, French, and Italian are the official languages, but the majority of the people speak German.  It’s a federal government, and the country is made up of twenty-six cantons.  The president is Johann Schneider-Ammann and the vice president is Doris Leutard.

(Central Intelligence Agency, The World Factbook: Switzerland)

Switzerland is not in the European Union (EU) or the European Economic Area (EEA).  That’s why the currency is the Swiss franc and not the euro.  But Switzerland is a part of the EU single market so its citizens can work and live in the UK just like EEA members, and is still part of the free trade agreement.

(My Switzerland, Currency)

Switzerland has maintained its neutrality and became an official member of the United Nations (UN) in 2002 and has overall strong ties with its neighbors.

(Central Intelligence Agency, The World Factbook: Switzerland)

About ⅔ of Switzerland is made up of mountains, forests, and lakes.  The service sector is the most important part of the economy, which includes banking and tourism.  Farming is also very important for their economy, but the Swiss still need to rely on imported goods.

(Information about Switzerland, Information about the Economy of Switzerland)

They have a strong market economy, strong human capital, and one of the highest per capita GDP’s in the world.  Switzerland is one of the most competitive economies because of it’s economically and politically stable, efficient capital markets, has a clear legal system, strong infrastructure, and low business tax rates.  In July of 2016, Switzerland’s GDP growth rate was 0.6%, and in 2015 the GDP was 664.74 billion dollars, and makes up a little more than one-percent of the world’s economy.

(Trading Economics, Switzerland GDP Growth Rate)

(Trading Economics, Switzerland GDP)