Switzerland has a very stable economy due to its strong ties to neighboring European countries through foreign trade and exports. Over 50% of Switzerland's exports are purchased by countries in the Eurozone, mainly Germany. While agriculture and small manufacturing make small contributions to GDP, the dominant industries are banking, insurance, and tourism, which employ a large portion of the workforce and contribute significantly to economic growth. However, the removal of currency controls linking the Swiss franc to the euro in 2015 hurt export-reliant industries like manufacturing and tourism by strengthening the franc, though it avoided an economic recession.

1. HOW STABLE IS THE
SWISS ECONOMY?
ETIENNE KISS-BORLASE
- A 2017 REPORT -

2. Switzerland is located right in the
heart of Europe and as such, the
European Union is very crucial to the
country’s foreign trade. This means
that its highly dependent on the
economic climate of the neighboring
countries. More than 50% of
Switzerland’s exports are purchased
by countries within the Eurozone,
with Germany claiming the largest
(20%) exports share. The country also
boasts of a very low unemployment
rate, which was put at 4.6% towards
the end of 2016. It is no wonder
many of the citizens enjoy an above
average lifestyle.
INTRODUCTION

3. THE AGRICULTURAL & SERVICE
SECTOR IN SWITZERLAND
The country is not particularly known for its agriculture probably
because it is home to many meadows and scenic mountains.
Nevertheless, the sector generates up to 100 billion CHF every year,
which contributes about 1% to the GDP. It also helps preserve the
country’s iconic landscape while contributing 60% of the local food
supply. Unfortunately, the quantities of employees as well as farms keep
declining, and the sector has largely become dependent on government
subsidies.
This sector is led by the tourism, insurance and banking industries. With
the banks employing up to 5.8% of the workforce and contributing 6%
to the GDP, they certainly make up a considerable part of the service
sector. UBS and Credit Suisse are the most prominent banks in the
country, with the former owning assets worth $1.738 billion in 2015. With
more than 4000 apprenticeships available in 2016, the banking industry
has built a name for itself as one that invests in the Swiss youth.

4. THE MANUFACTURING SECTOR
IN SWITZERLAND
Switzerland is home to globally recognized corporations including
Swatch, Rolex and Nestle. Despite that, many of the businesses are small
medium-sized enterprises with a workforce of less than 250. These
businesses employ up to 70% of the population that’s not employed by
the government. And while a large percentage of the workforce is
employed in the mechanical and engineering, the largest
manufacturing industries in the country, the sector has suffered plenty
as a result of the removal of the currency cap on the Swiss franc. This
move has also made it more difficult for corporations to export to the
Eurozone. Other major sectors include energy, pharmaceutical and
chemical industries as well as watch-making.
The move by the Swiss National Bank to remove its cap of 1.20 CHF on
the exchange rate with the euro on 15th January, 2015 didn’t just hurt
the manufacturing sector. The tourism industry suffered a major blow as
it deterred travelers in the Eurozone from visiting Switzerland. On the
upside, the Swiss franc became stronger and the country was able to
avoid recession.

5. THE END
ETIENNEKISS-BORLASE.NET