Switzerland Economic Data & Projections

Switzerland Economic Outlook

A resilient and highly developed economy:

Switzerland boasts one of the world's most advanced and stable economies with among the highest GDP per capita levels on the planet, underpinned by strong institutions, a skilled labor force, prudent fiscal policies, an independent monetary framework led by the Swiss National Bank, and close collaboration between academia and industry. The country is home to prestigious institutions such as ETH Zurich and EPFL, which drive advancements in science and technology.

Financial hub and global trade player:

Switzerland is a leading global financial center, with Zurich and Geneva playing crucial roles in international banking, wealth management, and insurance. The country is home to some of the world's largest financial institutions, such as UBS and Credit Suisse (now absorbed by UBS in a government-backed deal in 2023). The financial sector contributes significantly to GDP, though regulatory scrutiny has increased following recent banking turbulence. Beyond finance, Switzerland is a key player in global trade, specializing in high-value exports such as pharmaceuticals, precision machinery, luxury watches, and chemicals. Major Swiss companies, including Roche, Novartis, and Nestlé, dominate their respective industries. The country maintains a robust trade surplus, with the European Union, the United States, and China as primary trading partners.

Challenges and structural headwinds:

Despite its strengths, Switzerland faces several economic challenges. The country's strong currency, the Swiss franc, often appreciates during periods of global uncertainty, making Swiss exports relatively expensive and weighing on manufacturing competitiveness. Additionally, demographic pressures, including an aging population, pose long-term risks to the pension system and healthcare costs. Moreover, Switzerland’s complex relationship with the European Union—its largest trading partner—remains a point of contention, as ongoing negotiations over market access and regulatory alignment create uncertainty for businesses.

Switzerland's economic outlook:

Switzerland’s economy is expected to grow steadily in the coming years, though at a more moderate pace compared to past decades. Growth will be supported by continued innovation, strong financial and pharmaceutical sectors, and resilient domestic demand. However, headwinds such as global economic slowdowns, tighter monetary policy by the Swiss National Bank, and geopolitical uncertainties could dampen momentum.

Switzerland's Macroeconomic Analysis:

Nominal GDP of USD 895 billion in 2023.

GDP per capita of USD 101,504 compared to the global average of USD 10,589.

Average real GDP growth of 1.9% over the last decade.

Sector Analysis

In 2022, services accounted for 72% of overall GDP, manufacturing 18%, other industrial activity 9%, and agriculture 1%. Looking at GDP by expenditure, private consumption accounted for 52% of GDP in 2023, government consumption 11%, fixed investment 25%, and net exports 12%.

International trade

In 2021, manufactured products made up 69% of total merchandise exports, mineral fuels 1%, food 3%, ores and metals 2% and agricultural raw materials 0%, with other categories accounting for 25% of the total. In the same period, manufactured products made up 60% of total merchandise imports, mineral fuels 4%, food 4%, ores and metals 2% and agricultural raw materials 0%, with other goods accounting for 30% of the total. Total exports were worth USD 489 billion in 2023, while total imports were USD 364 billion.