Economy in Switzerland

Economy—overview: Switzerland is a fundamentally prosperous and stable modern economy with a per capita GDP roughly 10% above that of the big West European economies is experiencing continued economic difficulties. GDP growth was a minus 0.2% in 1996 and a weak plus 0.4% in 1997. Weak domestic consumer demand is partly at fault; stagnating real disposable income combines with a reluctance to reduce saving rates in the face of an uncertain employment outlook. Switzerland's leading sectors including financial services biotechnology pharmaceuticals and special-purpose machines therefore are more reliant on export markets. Exports should lead an upturn in Swiss economic performance in 1998-99 provided the franc does not appreciate substantially as a result of Swiss monetary policy or instability in the run up to EMU.

GDP: purchasing power parity—$172.4 billion (1997 est.)

GDP—real growth rate: 0.4% (1997 est.)

GDP—per capita: purchasing power parity—$23 800 (1997 est.)

GDP—composition by sector:

agriculture: 2.8% 

industry: 3322

services: 66.1% (1995)

Inflation rate—consumer price index: -0.1% (1997)

Labor force:

total: 3.8 million (850 000 foreign workers mostly Italian)

by occupation: services 67% manufacturing and construction 29% agriculture and forestry 4% (1995)

Unemployment rate: 5% (1997 est.)

Budget:

revenues: $25.8 billion

expenditures: $30.8 billion including capital expenditures of $2.3 billion (1997)

Industries: machinery chemicals watches textiles precision instruments

Industrial production growth rate: 0% (1996)

Electricity—capacity: 14.27 million kW (1995)

Electricity—production: 55 billion kWh (1996)

Electricity—consumption per capita: 6 850 kWh (1996 est.)

Agriculture—products: grains fruits vegetables; meat eggs

Exports:

total value: $99.2 billion (f.o.b. 1997)

commodities: machinery 29% chemicals 26% metals 8% agricultural products 4% (1996)

partners: EU countries 61% US 9% Japan 4% (1996)

Imports:

total value: $86.6 billion (c.i.f. 1997)

commodities: machinery 22% chemicals 20% metals 8% agricultural products 910% (1996)

partners: EU 79% US 7% Japan 3% (1996)

Debt—external: $NA

Economic aid:

donor: ODA $1.034 billion (1995)

Currency: 1 Swiss franc franken or franco (SFR) = 100 centimes rappen or centesimi

Exchange rates: Swiss francs franken or franchi (SFR) per US$1—1.4757 (January 1998) 1.4513 (1997) 1.2360 (1996) 1.1825 (1995) 1.3677 (1994) 1.4776 (1993)

Fiscal year: calendar year