Switzerland Overview

Growth has followed an decreasing trend in 2005. Swiss GDP growth rate was 1.7% in 2004 and 0.8% in 2005. The IMF forecasts a 1.8% growth in 2006. Switzerland is particularly open to international trade and has achieved its best result concerning external trade : exports have risen by 4.5% in 2005. The unemployment rate is lowing (3.8% in 2005, 4.4% in 2004). Switzerland enjoys one of the world's highest standards of living and its economic stability is ensured. However, the Swiss economy is undergoing structural difficulties with a weak growth for a decade .

Agriculture provides 1.6% of the GDP. The sector is based on bovine breeding and dairy products. The Swiss authorities grant numerous direct subsidies to farmers meeting strict ecological criterion such as soil protection. Organic production is in full boom. Mining natural resources are nearly non existent. The industrial sector is characterized by high-tech industries good results and competitiveness: chemistry, pharmaceutics, mechanics and watch-making industries. Switzerland possesses one of the best potentials regarding biotechnologies field. Food-processing holds a significant place especially thanks to Nestlé or Lindt & Sprüngli. Services play a major role in the country's economy. Switzerland is renowned for its bank secrecy and its attracting tax system; it is the largest money market in the world for the value of offshore assets under management.

The European Union is Switzerland's first trade partner and realizes 2/3 of its external trade with the EU. Industrial products trade between Switzerland and EU are ruled by 1972's free trade agreement between EU and Switzerland. On the 1st of June 2002, seven sectoral agreements came into effect between EU and Switzerland. Exports account for 45% of the GDP. The country's main export partners are Germany, the United States and France, and its main import partners are Germany, France and Italy. Switzerland mainly imports machinery, pharmaceutics vehicles and capital goods.