This project covers Switzerland in general, Economy of Switzerland,Famous Swiss Companies,Present economic condition in Switzerland,Trading partners of Switzerland, Switzerland's trading relations
This project covers Switzerland in general, Economy of Switzerland,Famous Swiss Companies,Present economic condition in Switzerland,Trading partners of Switzerland, Switzerland's trading relations with India.
OBJECTIVES OF THE PROJECT
To know Switzerland in general
To know the economy of Switzerland and to know some famous Swiss
To understand the present economic condition in Switzerland
To know the main trading partners of Switzerland and the imports and exports
made by it.
To see what does Switzerland import and export from India
2. RESEARCH METHODOLOGY
I have completed the project SWITZERLAND using the secondary data like
Internet and various research, Management and news portals. Time constraint
and the maximum limit in the number of pages are the reasons of not preparing
the project report in detail as I wanted it to be but still I have tried to explain in
general, about the economy, trade relations and present economic condition of
Switzerland and also to know some famous Swiss Companies.
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. Bern is the capital city of Switzerland. The currency of Switzerland is Swiss
Franc. 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. Its economic and political stability, transparent legal
4. system, exceptional infrastructure, efficient capital markets, and low corporate tax rates
also make Switzerland one of the world's most competitive economies. The Swiss have
brought their economic practices largely into conformity with the EU's, to enhance their
international competitiveness, but some trade protectionism remains, particularly for its
small agricultural sector. Switzerland maintains diplomatic relations with almost all
countries and historically has served as a neutral intermediary and host to major
international treaty conferences. The country has no major dispute in its bilateral
Switzerland is not a member of the European Union; the Swiss people have consistently
rejected membership since the early 1990s. Only on Sept 10, 2002, the Swiss abandoned
their long-held neutrality to become the 190th member of the UN. Switzerland also is a
member of the following international organizations: World Trade Organization,
Organization for Economic Cooperation and Development, European Free Trade
Association, Bank for International Settlements, Council of Europe, and Organization for
Security and Cooperation in Europe (OSCE).
The Swiss feel a moral obligation to undertake social, economic, and humanitarian
activities that contribute to world peace and prosperity. This is manifested by Swiss
bilateral and multilateral diplomatic activity, assistance to developing countries, and
support for the extension of international law, particularly humanitarian law. Switzerland
(mainly Geneva) is home to many international governmental and nongovernmental
organizations, including the International Committee of the Red Cross (whose flag is
essentially the Swiss flag with colors reversed--the Red Cross historically being a Swiss
organization). One of the first international organizations, the Universal Postal Union, is
5. located in Bern.
Size and Location of Switzerland
Switzerland has an area of 41,285 square kilometres (15,940 square miles). The
productive area - that is, the area without the lakes, rivers, unproductive vegetation and
no vegetation at all - covers 30,753 square km (11,870 square miles).
It measures 220 kilometers (137 miles) from north to south and 350 km (217 miles) from
east to west. Switzerland stands on the route linking northern and southern Europe. It
borders Germany in the north, Austria and the Principality of Liechtenstein in the east,
Italy in the south and France in the west. This means that three important European
cultures meet in Switzerland - that of the German-speaking area, the French and the
Climate and seasons
The diversity of Switzerland is reflected in its climate, despite its small size. The Alps are
an important factor here. They act as a barrier, so the weather in the north is often quite
different from that in the south. It is noticeably milder in winter in the south than in the
north. There are also significant differences in the amount of rainfall.
6. The seasons are clearly defined. In spring (March to May) the trees blossom and the
meadows become green. In summer the temperature rises to 25-30 degrees (77-86
degrees Fahrenheit). In autumn (September to November) the fruits ripen, then the leaves
turn brown and fall. In winter the snow changes the landscape.
Switzerland has 6 per cent of Europe's stock of fresh water. The Rhine, Rhone and Inn all
take their source here, although their waters flow into three seas: the North Sea, the
Mediterranean and the Black Sea.The Rhine Falls, a few kilometers downstream of
Schaffhausen, are the largest in Europe. They are 150 m (450 ft) wide and 23 m (75.4 ft)
high. In addition, Switzerland has over 1,500 lakes. The two largest, Lakes Geneva and
Constance, lie on the border. Lake Geneva is shared with France, and Lake Constance
with Germany and Austria. Lake Geneva, which lies on the course of the Rhone, is the
largest freshwater lake in central Europe. The biggest lake which lies wholly within
Switzerland is Lake Neuchâtel with an area of 218.4 square km (84.3 square miles).
Probably the best known lake is Lake Lucerne in Central Switzerland (113.7 square km /
44 square miles).
7. Demographic Features of Switzerland
Population in Switzerland
The total population in Switzerland was last recorded at 8.0 million people in 2012 from
5.4 million in 1960, changing 48 percent during the last 50 years. Population in
Switzerland is reported by the Eurostat. Switzerland Population averaged 6.67 Million
from 1960 until 2012, reaching an all time high of 7.95 Million in December of 2012 and
a record low of 5.36 Million in December of 1960. The population of Switzerland
represents 0.11 percent of the world´s total population which arguably means that one
person in every 882 people on the planet is a resident of Switzerland.
Switzerland has four national languages, but they vary greatly in the number of speakers.
German is by far the most widely spoken language in Switzerland: 19 of the country’s 26
cantons are predominantly (Swiss) German-speaking.
French is spoken in the western part of the country, the "Suisse Romande." Four cantons
are French-speaking: Geneva, Jura, Neuchâtel and Vaud. Three cantons are bilingual: in
Bern, Fribourg and Valais both French and German are spoken.
Italian is spoken in Ticino and four southern valleys of Canton Graubünden.
4. Rhaeto-Rumantsch (Rumantsch)
Rumantsch is spoken in the only trilingual canton, Graubünden. The other two languages
spoken there are German and Italian. Rumantsch, like Italian and French, is a language
with Latin roots. It is spoken by just 0.5% of the total Swiss population.
5. Other languages
The many foreigners resident in Switzerland have brought with them their own
languages, which taken as a whole now outnumber both Rumantsch and Italian. The
9. speakers of Serbian/Croatian were the largest foreign language group, with 1.4% of the
population. English was the main language for 1%.
Since Switzerland has no natural resources, education and knowledge have become very
important resources. Therefore Switzerland claims to have one of the world's best
In Switzerland, every child must attend at least the elementary school. The country
provides various schools at different levels. Because the cantons are responsible for the
educational system, the names, the subjects, the starting age of the students and the
duration vary significantly between the cantons. For example, some cantons start to teach
the first foreign language at fourth grade, while others start at seventh grade. This can
turn moving with children between cantons into a nightmare.
In Switzerland, most children go to public schools. Private schools usually are expensive
and people tend to think that students of private schools probably didn't make it at the
public school. Public schools include "Kindergarten", "Volksschule" (elementary
school), "Gymnasium" (secondary school) and "Universitäten" (universities). Most
municipalities provide kindergarten, primary and secondary schools. Most cantons
provide at least one secondary school. There are eleven universities in Switzerland, nine
are run by cantons, two are run by the confederation.
10. After elementary school, kids may either choose to go to secondary school or to start an
apprenticeship. In the later case, after finishing the apprenticeship, it is still possible to
start an academic career at either a secondary school or a so called"Fachhochschule"
(FH) (technical college).
Employed Persons in Switzerland
Employed Persons in Switzerland increased to 4827 Thousand Persons in the first quarter
of 2013 from 4801 Thousand Persons in the fourth quarter of 2012. Employed Persons in
Switzerland is reported by the Swiss Economic Institute (KOF). Switzerland Employed
Persons averaged 3957.62 Thousand Persons from 1975 until 2013, reaching an all time
high of 4827 Thousand Persons in February of 2013 and a record low of 3242 Thousand
Persons in August of 1976. In Switzerland, employed persons are individuals with a
minimum required age who work during a certain time for a business.
11. Unemployment Rate in Switzerland
Unemployment Rate in Switzerland remained unchanged at 3 percent in August of 2013
from 3 percent in July of 2013. Unemployment Rate in Switzerland is reported by the
State Secretariat for Economic Affairs. Switzerland Unemployment Rate averaged 3.35
Percent from 1995 until 2013, reaching an all time high of 5.40 Percent in May of 1997
and a record low of 1.60 Percent in November of 2000. In Switzerland, the
unemployment rate measures the number of people actively looking for a job as a
percentage of the labour force.
12. Economy of Switzerland
Switzerland has a highly successful market economy based on international trade and
banking. Its standards of living, worker productivity, quality of education, and health care
are higher than any other European country. Inflation is low, and unemployment is
negligible. The economy is heavily dependent on foreign guest workers, who represent
approximately 20% of the labor force. Agriculture employs less than 5% of the
population, and since only 10% of the land is arable, the primary agricultural products are
cattle and dairy goods (especially cheeses); grains, fruits, and vegetables are also grown,
and there is a large chocolate-processing industry. Mineral resources are scarce, and most
raw materials and many food products must be imported. Tourism adds significantly to
the economy. Electricity is generated chiefly from hydro electrical and nuclear power
sources. Switzerland has a worldwide reputation for the high quality of its export
manufactures, which include machinery, chemicals, watches, textiles, precision
instruments, and diverse high-tech products. Centered in Basel, the chemicalpharmaceutical industry exports around the globe. Due to its central location in Europe
and the stability of its politics and currency, Switzerland has become one of the world's
most important financial centers. The banking, insurance, shipping, and freighting
industries accommodate the enormous amount of international trade going through
Switzerland. Banking has also benefited secrecy laws, which have led wealthy foreigners
to evade taxes by hiding assets with Swiss banks. In recent years, however, that secrecy
13. reduced as a result of pressure from foreign governments seeking to prosecute tax cheats.
Imports include manufactured goods, vehicles, and clothing and textiles. Its most
important trading partners are Germany, Italy, France, the United States, and Great
Britain. As a first world country with a skilled labor force, the majority of Swiss exports
are precision or 'high tech' finished products. Switzerland's largest
specific SITC categories of exports include; medicaments, glycosides and vaccines,
watches, orthopaedic appliances and precious jewellery. Some raw ores or metals are
exported, but the majority of the exports in this category are finished jewellery or other
finished products. Agricultural products that Switzerland is famous for, such as cheese
(0.29%), wine (0.05%) and chocolate (0.39%) all make up only a small portion of Swiss
exports and agricultural products make up only a small portion of all exports.
Switzerland’s main imports include; medicaments, cars, precious jewellery and other
Key Sectors of the Economy
The Swiss have a long tradition of watchmaking, and are the uncontested leader in luxury
watches, with brands like Audemars Piguet, Baume et Mercier, Breitling, Chopard,
Franck Muller, Jaeger-LeCoultre, Longines, Patek Philippe, Piaget, Rado, Rolex, TAG
Heuer, Tissot, or Vacheron Constantin producing most of the world's high-end watches.
14. Vacheron Constantin was founded in Geneva, Switzerland in 1755 and is the oldest
watch manufacturer in the world with an uninterrupted history. Switzerland is one of the
leaders in exports of high-end watches as well as clocks. The most complex watch in the
world is probably the Calibre 89 made by Patek Philippe for its 150th anniversary in
1989. It contains 1728 parts, and four people spent nine years working on it from initial
research and design to final assembly. The quality of Swiss products is the basis of a
successful export economy. The Swiss have a reputation for hard work and a tendency
towards precision.A luxury watch consists of more than 300 parts. A great deal of
thought and meticulous work is put in to fitting the most complex mechanisms into the
smallest casings. The materials used for a watch make up just a fraction of the cost of the
finished product. Switzerland is also known for the world's best selling plastic watch: the
In 2011, the exports of Switzerland reached nearly 19.3 billion CHF. Swiss watch
manufacturers exceeded their previous annual result by 19.2%. The exports of those
watches mainly go to Asia (55%), Europe (29%), America (14%), Africa and Oceania
Banking and Financial Services
Banks and financial institutions play a key role in the Swiss economy. The Swiss franc is
among the world’s most stable currencies. The Swiss capital market is one of the most
15. important in the world, and the two major Swiss banks – UBS and Credit Suisse – are
major forces in the global financial market.In 2009, the Swiss financial sector employed
195,000 people, or 5.8% of the entire Swiss workforce. In addition, the major Swiss
banks employ several thousand staff overseas. The Swiss financial sector also exerts a
major indirect influence on employment in other sectors of the Swiss economy.The Swiss
are also world leaders in offshore private banking. In 2007, they managed close to 27%
of all private offshore funds. Indeed, one third of UBS and Credit Suisse profits are
generated by their offshore banking services.At the end of 2008, there were 327 banks in
Switzerland, including branches of foreign banks. However, the home market is
dominated by two banking goliaths - UBS und Credit Suisse. Together their share of
domestic deposits and loans stands at over 30%, and their total assets are some six times
higher than Switzerland’s Gross Domestic Product (GDP).
Switzerland’s cantonal banks are independent financial institutions. There are 24 cantonal
banks in Switzerland, i.e. one for every canton, with the exception of Solothurn and
Appenzell Ausserrhoden. The cantons either own the bank outright or are the majority
stakeholder. Historically, the role of these banks was to strengthen and support the
economy of their home canton through the provision of low-cost loans. These banks still
operate primarily in their home canton, but are linked together nationally in the Cantonal
16. Private banking
Private banking is a centuries-long tradition in Switzerland. The first recorded private
bank dates back to the 17th century. Private bankers assume unlimited liability for their
business; if they go bankrupt, they can lose their entire private fortune. With the
evolution of the banking market, private bankers are facing ever stiffer competition from
the major banks, which now offer similar services.
Switzerland also has a network of cooperative banks, with 537 branches mainly in
smaller towns and villages. Based on the “Raiffeisen model”, all branches operate
completely independently, and their members not only take part in decision making but
also bear joint responsibility for the fortunes of their branch.
The first Islamic private bank, the Faisal Bank, opened in Geneva in 2006. Targeting
wealthy non-Swiss and Islamic customers, it offers asset management services
compatible with Islamic banking practices. Several Swiss banks now have branches in
the Middle East offering similar services.
International Comparison of Swiss financial services with its competitors
Switzerland is a relatively small country in terms of population, but it is an international
heavyweight when it comes to financial services. The table below provides an overview
of the largest asset managers worldwide.
17. Share of assets under management in international private banking, 2011
Source: Boston Consulting Group,
Singapore and Hong Kong
Protection of privacy in financial matters – banking secrecy
No other aspect of the Swiss banking system is surrounded by so many myths, legends
and mistaken ideas as banking secrecy. For some, Swiss banking secrecy is a Swiss
trademark, as impregnable as a fortress. For others, it is a dubious, even harmful
18. institution that must be fought politically. Both perceptions collide with reality – the first
standpoint is positively exaggerated, while the second is negatively charged. The reality
Banking secrecy forbids Swiss banks providing their parties with information about their
clients, although this protection is not absolute. In some ways, banking secrecy is for
bankers what the Hippocratic Oath is for doctors. In other words, it is there to protect the
client, not the bank. The bank alone cannot lift banking secrecy. However, the client may
relieve the bank of its duty of confidentiality and allow or even require it to disclose
information covered by the banking secrecy law. Bank employees who violate that duty
may be jailed or fined.
In December 2012 the Swiss government finalised its anti-money laundering strategy for
the Swiss financial centre. It states in very clear terms that Switzerland pledges to handle
only declared financial assets. Moreover, with the proposed anonymous source tax,
Switzerland reconciles two legitimate concerns: the right of countries to collect taxes on
the one hand, and the rights of citizens to the protection of their personal privacy in
financial matters on the other.
Banking secrecy is borne out of a long tradition of discretion, on which the reputation of
Swiss bankers was forged. Since 1935 it has been expressly incorporated in Swiss law.
However, banking secrecy is not exclusive to Swiss legislation: it exists in several other
countries with a highly developed banking and finance system, even if it is applied
There has always been a limit to Swiss banking secrecy: neither money launderers nor
terrorists can hide behind it, nor can anyone suspected of corruption or other serious
offences. Numerous provisions of civil law, debt collection and bankruptcy law, criminal
law, administrative criminal law, and mutual assistance in criminal matters provide for
exceptions to banking secrecy. Accordingly, banking secrecy can be lifted against the
client's will on the order of a judicial or supervisory authority.
Furthermore, in March 2009, the Swiss government decided to withdraw its reservations
to Article 26 of the OECD Model Convention with respect to administrative assistance on
tax matters. Consequently, Swiss banks may supply information on a case-by-case basis
to a foreign tax authority in response to a specific and substantiated request. However, the
financial privacy of citizens who have not acted unlawfully will remain intact.
Switzerland is among the world's leading producers of chemicals and pharmaceuticals.
The chemical industry focuses on dye-stuffs, perfume essences and food flavourings. The
chemical and pharmaceutical industries export 85% of their output. The chemical
industry is present in Switzerland for over 150 years. From the beginning, a small
domestic market and the lack of chemical raw materials induced a focus on the
production and world-wide marketing of specialized chemicals with high added value.
Despite all changes which took place during the course of the years, this basic orientation
has continued to be the key to success for the Swiss chemical and pharmaceutical
20. industry, which today emphasizes heavily life-science products as well as high-value
specialty chemicals. The Swiss chemical and pharmaceutical industry operates nearly
exclusively in the field of specialties. Today 90 % of the Swiss chemical industry's
overall product portfolio are specialties; a remarkable portion compared to international
average. Producing more than 30'000 products, it is exceptionally differentiated. The
global annual demand for some of these specialties often is below a few metric tons and
The following major product groups can be distinguished in terms of areas of application:
• Pharmaceuticals and diagnostics
• Fine chemicals
• Flavours and fragrances
• Crop protection agents
• Specialty chemicals for industrial-technical purposes
• Pigments, paints and lacquers.
This strategy of concentration on specialties is the Swiss chemical and pharmaceutical
industry's key to success. With their high-grade specialised products Swiss companies
have established a world-wide presence, and often a market leadership .Research and
development for new products and processes are the lifeblood of the Swiss chemical and
pharmaceutical industry. Using scientific findings and methodologies, the Swiss
21. companies continuously develop new products and processes which satisfy existing and
future requirements of customers. The necessary, significant investment into research can
only be made if the companies can rely on future returns. Research expenditures are
funded by the profits made from the sale of today's products. The most important
ingredients for this innovation process are the scientific and technological know-how and
the skills of the workforce. Their work is decisive for the success of a research or
development project. Novartis, Roche, Merck Serono, Clariant etc. are some of the
leading companies in this space. The Swiss chemical and pharmaceutical companies are
present on all world markets as suppliers of speciality product.
Leading export nation (bn EUR)
22. Strong dependency on export
Pharma Sales into regions
Total exports and domestic sales 2011: 78.5 bn CHF
The Swiss chemical and pharmaceutical industry is highly dependent on foreign
23. Worldwide sales
World-wide sales of the "top ten" Swiss chemical and pharmaceutical companies
Total 2011: 149.2 bn CHF
Shipping and logistics
Four per cent of Switzerland's Gross Domestic Product comes from the shipping and
logistics sector. It employs some 130,000 people in Switzerland alone.
The International Federation of Freight Forwarders Associations is based in Zurich.
Surprising as it may seem for a landlocked country, Switzerland has a merchant navy,
with around 30 ships transporting goods of all kinds apart from arms, operating under
contract anywhere in the world. Their port of registration is Basel. The fleet - the most
modern in the world - accounts for about 0.1% of world tonnage. Five companies sail
ships under the Swiss flag. However, although there were once hundreds of Swiss
working on these ships, nowadays very few of the sailors are Swiss nationals.
With increasing globalisation efficient transport is becoming more and more important.
Switzerland is home of two of the world's major logistics companies, Panalpina and
Kühne and Nagel as well as numerous small firms. Basel is the centre of the sector.Their
task is to ensure that their customers' goods and production elements are delivered to the
right place at the right time, as modern manufacturers sub-contract work abroad. These
manufacturers strive to cut costs as far as possible, and therefore need items delivered
just when they are needed, according to the so-called "just in time" principle. Items
delivered too soon incur warehousing costs; delivered too late leads to a break in
production. Switzerland is one of the few countries in the world which
trains professionals for the logistics industry, rather than expecting them to learn on
25. Famous Swiss Companies
Some of the world's most famous companies are Swiss, such as Adecco (human resources),
Credit Suisse (banking), Lindt & Sprüngli (chocolate), Logitech (electronics), Mövenpick (hotels),
Nestlé (food), Novartis (pharmaceuticals), Richemont (luxury goods), Schindler (lifts/elevators),
Securitas (security), Swatch (watches) and UBS (banking).
Also there were 48 Swiss companies on the 2013 Forbes Global 2000 list. The Forbes
Global 2000 is an annual list of the world's 2000 largest publicly listed corporations.
In the list, collectively, the Swiss companies had a combined market value of $1.389 trillion,
with $4.588 trillion in assets; generating $1.022 trillion in revenues and $61 billion in profits.
Some of the Companies were Nestle(32nd), Novartis(57th), Zurich Insurance Group(75th) ,
Roche Holding(93rd) and Credit Suisse Group(132nd) to name a few.
Nestle : Nestle SA is a Switzerland-based holding company of the Nestle Group (founded
in 1866) and is principally engaged in the development and production of food and
beverage. The Group manages its Food and Beverages business through three geographic
zones (Zone Europe, Zone Americas and Zone Asia, Oceania and Africa) and globally
for Nestle Waters, Nestle Nutrition and Other Food and Beverages (Others). The
Others segment includes activities of Nestle Professional, Nespresso, Nestle Health
Science and the Joint Ventures in both Food and Beverages and Pharmaceutical
activities. The Group's products are diversified into seven product groups: Powdered and
Liquid Beverages; Water; Milk products and Ice Cream; Nutrition and HealthCare;
26. Prepared dishes and cooking aids; Confectionery and PetCare. In addition, the Group
manages a number of brands diversified into specific product groups like Baby foods,
bottled water, coffee, drinks, food service, sport nutrition and weight management,
Novartis : Novartis AG founded in1970 provides healthcare solutions. The Company is a
multinational group of companies specializing in the research, development,
manufacturing and marketing of a range of healthcare products led by pharmaceuticals.
Its portfolio includes medicines, eye care, cost-saving generic pharmaceuticals,
preventive vaccines and diagnostic tools, over-the-counter and animal health products.
The Company has five segments: Pharmaceuticals, which include patent-protected
prescription medicines; Alcon, which include surgical, ophthalmic pharmaceutical and
vision care products; Sandoz, which include generic pharmaceuticals; vaccines and
diagnostics, which include human vaccines and blood-testing diagnostics, and consumer
health, which include over-the-counter medicines (OTC) and Animal Health.
Zurich Insurance Group Limited: Zurich Insurance Group Limited is a Switzerlandbased holding company engaged in the insurance sector which was founded in the year
1872. The Company provides a range of general and life insurance products and services
for individuals, small business, mid-sized and large-sized companies, and multinational
corporations. The Company offers its products and services through three business
segments, namely General Insurance, Global life and Farmers. The General Insurance
27. segment offers motor, home and commercial products and services for individuals, as
well as small and large business. The Global life segment offers life insurance, savings,
investment and pensions solutions. The Farmers segment includes farmers management
services, which provides non-claims management services to the farmers exchange, as
well as Farmers Re business, which includes reinsurance assumed from the Farmers
Exchange by the Company's group. Furthermore, the Company provides reinsurance and
insurance business considered as non-core business.
Roche Holding: Roche Holding AG is a Swiss pharmaceuticals and diagnostics holding
company founded in 1896. It belongs to the Roche Group that operates through
subsidiaries and associated companies around the world. It discovers, develops and
provides diagnostic and therapeutic products and services from early detection and
prevention of diseases to diagnosis, treatment and treatment monitoring. The Company
has two divisions: Pharmaceuticals and Diagnostics. Pharmaceuticals are divided into
two sub-divisions: Roche Pharmaceuticals and Chugai. It operates in the United States,
Western Europe, Japan, CEMAI (Central and Eastern Europe, Middle East, Africa,
Central Asia, Indian Subcontinent), Latin America, Asia-Pacific and Other regions.
Diagnostics include five business areas: Applied Science, Diabetes Care, Molecular
Diagnostics, Tissue Diagnosis and Professional Diagnostics. It operates in five
geographical regions: Europe, Middle East and Africa (EMEA); North America; AsiaPacific; Latin America, and Japan.
28. Swiss Re: Swiss Re AG is a Switzerland-based holding company of Swiss Re Group (the
Group) founded in 1863. The company provides wholesale reinsurance and insurance
products, insurance-based capital market instruments, and supplementary risk
management services to Property & Casualty, as well as for Life & Health clients and
brokers worldwide. It diversifies its activities into Property & Casualty, offering
traditional reinsurance and insurance products for corporate clients, Life & Health,
offering reinsurance to life insurance companies worldwide and acquires closed life and
health books of business which it administers through Admin Re, and Asset Management
(included in other business segments), engaged it management of the assets that the
Group generates and setting of the Group's investment strategy.
Credit Suisse Group: Credit Suisse Group AG (Credit Suisse) is a global financial
services company founded in 1982. The Company operates in three segments: Private
Banking, Investment Banking and Asset Management. In Private Banking, it offers
advice and a range of financial solutions to private, corporate and institutional clients.
Investment Banking provides a range of financial products and services, with a focus on
businesses that are client-driven, flow-based and capital-efficient. Asset Management
offers products across a range of asset classes, including alternative investments such as
hedge funds, private equity, real estate and credit, and multi-asset class solutions, which
includes equities and fixed income products.
29. UBS: UBS AG founded in 1998 is a client-focused financial services company that offers
a combination of wealth management, asset management and investment banking
services on a global and regional basis. UBS AG is the parent company of the UBS
Group (Group).The operational structure of the Company consists of the Corporate
Center and four business divisions: Wealth Management & Swiss Bank, Wealth
Management Americas, Global Asset Management and the Investment Bank.
30. Present Economic Condition in Switzerland
GDP Annual Growth Rate of Switzerland
The Gross Domestic Product (GDP) in Switzerland expanded 2.50 percent in the second
quarter of 2013 over the same quarter of the previous year. GDP Annual Growth Rate in
Switzerland is reported by the State Secretariat for Economic Affairs. Switzerland GDP
Annual Growth Rate averaged 1.68 Percent from 1981 until 2013, reaching an all time
high of 7.30 Percent in March of 1990 and a record low of -3.70 Percent in June of 2009.
In Switzerland, the annual growth rate in GDP measures the change in the value of the
goods and services produced by the country economy during the period of a year.
31. Inflation Rate of Switzerland
The inflation rate in Switzerland was recorded at 0 percent in August of 2013. Inflation
Rate in Switzerland is reported by the Federal Statistics Office of Switzerland.
Switzerland Inflation Rate averaged 2.63 Percent from 1956 until 2013, reaching an all
time high of 11.92 Percent in December of 1973 and a record low of -1.37 Percent in
June of 1959. In Switzerland, the inflation rate measures a broad rise or fall in prices that
consumers pay for a standard basket of goods.
32. Current Account to GDP of Switzerland
Switzerland recorded a Current Account surplus of 13.50 percent of the country's Gross
Domestic Product in 2012. Current Account to GDP in Switzerland is reported by the
Swiss Federal Statistical Office. Switzerland Current Account to GDP averaged 7.59
Percent from 1980 until 2012, reaching an all time high of 15.60 Percent in December of
2010 and a record low of -0.60 Percent in December of 1980. The Current account
balance as a percent of GDP provides an indication on the level of international
competitiveness of a country. Usually, countries recording a strong current account
surplus have an economy heavily dependent on exports revenues, with high savings
ratings but weak domestic demand. On the other hand, countries recording a current
account deficit have strong imports, a low saving rates and high personal consumption
rates as a percentage of disposable incomes.
The quality of Swiss products is the basis of a successful export economy. The Swiss
have a reputation for hard work and a tendency towards precision.
Overall, the important areas for Swiss exports are micro-technology, high technology,
biotechnology, the pharmaceuticals industry and banking and insurance know-how.Swiss
products can command high prices in world markets because consumers are ready to pay
for high quality. In Switzerland, a higher percentage of people work in research and
development than in other industrialized countries. Switzerland has virtually no mineral
resources and a restricted surface area. It depends for its wealth on foreign trade. The
relatively small size of its domestic market - a total population of just over 7,785,800 - is
another factor which has encouraged Swiss manufacturers to look abroad: they need
foreign markets in order to make investment in research and development worthwhile.
Switzerland imports bulky raw materials and exports high-quality goods. Swiss
companies are extremely competitive in world markets. In some branches, more than
90% of goods and services are exported. The best-known export items are watches,
chocolate and cheese, but in fact mechanical and electrical engineering and chemicals
together account for over half Swiss export revenues.
Main Imports: Machinery and transport equipments, medicinal and pharmaceutical
products, other chemicals, manufactured goods
34. Main Exports: Chemicals, clocks and watches, food, instruments, jewelry, machinery,
pharmaceuticals, precious metals, textiles, Rolex.
35. Switzerland's main trading partners are European Union members. They are:
Imports Partners: Germany (27.7%), U.S. (10.6%), Italy (10.3%), France (8.4%),
Russia (4.4%), U.K. (4%)
Exports Partners: Germany (21.2%), U.S. (8.7%), France (8.2%), Italy (7.9%), Austria
Swiss economic policy has always been based on free trade, with low import
duties and virtually no import quotas - the only exception being for agricultural produce.
Even here many of the restrictions are being eased as a result of recent agreements with
Home to the World Economic Forum
Switzerland is the home of the World Economic Forum (WEF), an international
organisation which brings together world leaders from the realms of politics and
business, to discuss and shape future policies. The WEF, which has its headquarters in
Geneva, was founded in 1971 by a German-born professor of business, Klaus Schwab.
It is best known to the general public for the annual meeting it holds at the end of January
in the Swiss resort of Davos, where world economic and social problems are debated.
This is attended by presidents and prime ministers, the heads of major economic
organisations, representatives of NGOs, intellectuals and even show business
36. personalities.The WEF describes its agenda as improving the state of the world. Among
its recent achievements it cites the "Resilient Dynamism" (2013).
Trade relations between Switzerland and India
Major items which Switzerland exports to India
Swiss exports to India consist of machinery and equipment (electrical and mechanical),
precision instruments, pharmaceutical products dyes and chemicals, fertilizers, watches
etc. Indian stands at 14th position worldwide in terms of countries importing from
Switzerland with a contribution of 1.2% in Switzerland’s exports. Switzerland stands at
3rd position in terms of countries exporting to India after China and UAE.
Almost 90% of Switzerland’s exports comprise of Gold, precious stones and other
jewellery items. Excluding Gold, Switzerland has provided parts for nuclear reactors for
the purpose of power generation. Given that nuclear power is poised for accelerated
growth in India, Swiss suppliers of equipments and parts have a good opportunity to do
business with India.
Major items which Switzerland imports from India
The main items which Switzerland imports from India are textiles and garments, organic
chemicals, precious stones and jewellery, dyestuffs, machinery and parts, leather
products, shoes and shoe uppers, cotton, plastics, coffee, tea, and hand-knotted carpets.
Switzerland stands at 44th position worldwide in terms of countries importing from India.
37. India stands at 22ndposition worldwide in terms of countries exporting to Switzerland
with a contribution of just 0.5% in Switzerland’s imports.
Thus, one will be able to see that Switzerland is a prosperous, welfare oriented and a
peace loving nation. It is focusing on its export oriented sectors for its growth. That can
be very well seen in the present economic environment where it is having Current
Account Surplus which only a few economies in the world are capable to achieve
especially in this tough international market. It has always ensured that it does not lose its
competitive advantage in the international market in the areas of Watch Making,
Pharmaceutical, Banking and Financial Sectors in order to sustain or perhaps even
further increase its exports. It has always looked to maintain its distinct identity in these
sectors. That is why Switzerland enjoys the goodwill and is respected by various
So, a developing country like India can take inspiration from this small country if it
has to increase its exports which will also enable India to take control of its Current
Account Deficit and at the same time increase its Foreign Exchange Reserves. Like
Switzerland, even India should look to focus on its strengths and encourage exports in