Switzerland is a land locked country and one of the richest countries in the world.
It has a stable economy yet it is not heavily endowed with natural resources.
The country is well known for its high innovative ability.
In 2015, the country was ranked the first in world in Global Innovation Index.
Its great success is attributed to the country’s ability to process
raw materials to produce a valuable final high quality product.
Its political neutrality has also played an important role in providing
a safe conducive environment for economic activities to thrive.
This has also encouraged foreign investment.
The working population in Switzerland is more than 3.8 million people.
The country’s job market is flexible characterized by low unemployment rates.
The country has a highly trained and skilled labor force
The country’s economy is highly prosperous and
one of the most competitive in the world.
Its Per Capita Gross Domestic Product is $27,100.
This value is the highest in Europe.
Major contributors to Switzerland’s stable economy
The three main sectors of Switzerland’s economy are
Industry sector
Agriculture sector
Service sector
Agriculture sector
Agriculture is regarded as the primary sector of the country’s economy.
The sector employs only 10% of the country’s population.
It also receives a lot of support from the government.
Agricultural production is highly subsidized by the
government and the sector enjoys trade protectionism.
Industry sector
Switzerland’s industry is mainly engaged in importing raw materials
and manufacturing them to produce high quality final products.
The finished goods are for domestic consumption and for export.
This sector employs up to 40 % of the country’s population.
The sector generally comprises of trade, handicrafts
and industry and is regarded as the secondary sector.
Some of the industries that earn high revenues for the country include:
Watch industry
Switzerland is popular for production of high quality and stylish watches.
It is also a leading exporter of watches in the world
with its main competitors being Japan and Hong Kong.
The country exports up to 95% of its watch production.
Machinery industry
The country’s machinery, electrical engineering and metals industry (MEM)
is a major contributor of Switzerland’s Gross Domestic Product (GDP).
In 2007, the sector contributed 19.7% of the country’s GDP.
More than 350,000 people in the country are employed in this sector.
Switzerland’s MEM industry is among the leading
exporters of machinery and metals in the world.
Approximately 80% of output in this sector is
for export while the rest is for domestic use.
The country is also a leading producer of textile machinery.
Textile machinery manufacturers that comprise of over 100
companies, haves created employment for over 30,000 people
Contribution of Gems and heavy metals to the Swiss economy
The country exports gems and heavy metals which
contributes revenue of several billion each year.
In 2017 alone, the heavy metals and gems
contributed revenue of up to $ 98.2 billion.
Energy
The country has several sources of energy and it generates electricity.
56% of the electricity is generated in the country is from hydro
electricity sources while 39% is generated from nuclear sources.
The rest (5%) is generated from conventional electricity sources.
Construction Industry
The country’s construction industry is developing at a
high rate and contributes to the GDP of the country.
In 2013, the sector contributed 5.1% of the total Gross Domestic Product.
Pharmaceuticals and chemicals
Switzerland is among the largest producers and exporters
of chemicals and pharmaceuticals in the world.
The main Pharmaceuticals and chemical
industries are located in the city of Basel.
The country’s largest Pharmaceutical industries are Roche and Novartis.
Its products include food flavorings, perfumes and dye-stuffs.
Approximately 85% of these products are for
export while the rest are for local consumption.
Service Sector
The service sector in Switzerland is well established.
It employs 70% of the country’s working population.
The leading industries in this sector are banking, insurance and tourism.
Tourism industry
Switzerland has a well developed tourism sector
receiving tourists from across the globe.
It has a state of the art infrastructure and numerous tourist attractions.
The industry has created employment opportunities
too many Swiss citizens and foreigners as well.
The locals of the country are great travelers and have given much
support to the hospitality and tourism industries in the country.
Banking industry
The country has an elaborate banking system that ensures long term monetary security.
The industry is regulated by Swiss Financial Market Supervisory Authority.
One key feature of Switzerland’s banking system
is it maintains a high degree of secrecy.
The sector also plays a major role in the economic well being of the country.
In 2015, banking contributed 5.12% of Switzerland’s
GDP which is equivalent to CHF 32 billion.
Insurance industry
Switzerland’s insurance industry is also a contributor of the
country’s GDP and has created employment to many Swiss citizens.
Other factors contributing to Switzerland’s economic prosperity include
Switzerland is a democracy and a politically neutral country
A stable political environment Switzerland is a democratic
nation that enjoys a calm and stable political environment.
It avoids forming military or political alliances with other countries and
since its expansion in 1515, the country has maintained political neutrality.
This has greatly favored economic growth and development.
In addition to this, the country has not engaged in any
warfare leading to human and economic destruction.
This has also played a major role in the economic success of Switzerland.
In 1815, the country was recognized for its political
neutrality policy at the Congress of Vienna.
International organizations
Switzerland has fostered good international relations with other countries.
A high number of international organizations
have their headquarters based in the country.
One of the main factors contributing to this is the
political neutrality the company has maintained.
It is also important to note that Red Cross was born in Switzerland.
More than 200 international organizations are hosted in Switzerland.
Some of the international organizations hosted by the country include:
United Nations Human Rights Council (UNHRC)
The headquarter of United Nations Human Rights
Council are based in Geneva, Switzerland
World Health Organization (WHO)
International Labor Organization (ILO)
United Nations High Commissioner for Refugees (UNHCR)
The International Telecommunication Union (ITU)