SWITZERLAND / SALARY

Introduction

Switzerland is a country that is found in central Europe. The capital city of Switzerland is Bern. The country has approximately 8.5 million people. Switzerland is also the home of the second-largest united nations headquarters. The country is the third richest landlocked country in the world. Despite being in Europe, Switzerland is not a member of the European Union. Switzerland uses the Swiss franc currency for transactions.  

During the global innovation index for 2015 Switzerland was ranked as number one globally. Switzerland's high economy is mainly as a result of the service sector.  The main industries playing a huge role are the tourism and banking industry. The guide will help you learn about Switzerland's economic sectors, inflation, rate of employment and GDP

GDP

Switzerland's nominal GDP is estimated to be 824 billion us dollars, making it among the best economies in the world, ranking 18th globally. The country has a GDP for Purchasing power parity estimated to be 660 billion us dollars, being ranked at number 35 globally. Switzerland  has experienced a GDP growth of 2.7 percent and 0.9 percent in 2018 and 2019. However, due to the effects of covid 19, the country's GDP contracted by 6 percent in the year 2020. The country is still recovering from the impacts of covid 19 and recorded 3.8 percent GDP growth in the year 2021. The growth is contributed by 73.7% services, 25.6% industry, and 0.7% agriculture. The country has an estimated nominal GDP per capita of 94,696 us dollars ranking 2nd and GDP per capita for Purchasing power parity 75,880 us dollars ranking 5th globally as per 2021 statistics.

Economic sector

Switzerland is a developed country with a high-income economy. The country's development is mainly in three economic sectors.

·       Primary sector

Primary sectors involve mainly agriculture. The industry has a small minority of workers, which contributes to 1.3% of the population. The agricultural sector in Switzerland is primarily for domestic food consumption. About 60% of food consumed in Switzerland is domestically produced. Switzerland's agricultural sector is very protected from the external. High tariffs for external products imposed by the Swiss government. The government of Switzerland uses 5.5% of the country's GDP to support food production in the country. Despite the high protection of domestic producers, the country also exports its products to the producers’ profit.

·       Secondary sector

This is a sector that contains the larger minority of the population. It is categorized as manufacturing. It carries 27.7% of the country's population. Switzerland has a well-developed and globally modest industrial sector and has world class food processing companies such as nestle. It also has machinery and robot manufacturing industries such as Bobst, SA Stadler rail, and ABB. Switzerland is also known for producing world-class military equipment. The country is also competitive globally in chemicals and has pharmaceutical companies such as Roche and Novartis. Switzerland is also famous for making high-end clocks and watches.

·       Tertiary

Tertiary carries the majority of the country's population.  The sector accounts for 71.0% of the country's population. The services sector in Switzerland is mainly in tourism, hospitality, bank, and finance. The Banking and finance sector in Switzerland is estimated to be 11.6% of the country's GDP and accounts for about 5.6% of the country's workforce. 

Employment Sector

1.    Employment

Switzerland had an employment rate of 82.5% in the year 2018. The service sector employs the majority of the workforce, which accounts for 76.9% of the country's population, followed by the manufacturing industry, which accounts for 19.8 % of the country's population. The Agricultural sector accounts for the lowest workforce, 3.3 % of the total workforce in the country. The average gross salary in Switzerland is estimated to be 62,283 us dollars annually.

2.    Unemployment

Switzerland is among  the countries with the lowest unemployment rate in Europe and the world at large. The country's unemployment rate stood at 4.8% in 2020. The largest unemployment group is youth between 15 to 24 years old. 

Exports and Imports

Export

The country’s export is estimated to be 313.5 billion us dollar annually. The country’s exports include watches, chemicals, machinery, metal, agricultural products, among others. The top country's export partners include Germany, United Kingdom, the United states, France, Hong Kong, China, Italy, India, among many other countries.

Imports

Switzerland's imports in the year 2017 were around $ 264.5 billion. The main imports include agricultural products, textiles, vehicles, chemicals, machinery, and metals. The main import partners for Switzerland include China, Germany, Italy, France, United States, and the United Kingdom.

Inflation

There are no enormous changes in Switzerland's inflation. The inflation rate has been constant over the years. The main reason behind the low inflation rate in Switzerland is monetary policy. While you compare Switzerland's inflation with other countries, you can vividly see that the inflation rate is relatively low. It's estimated that Switzerland is likely to have lower inflation than countries than the United Kingdom since it has a tighter monetary policy. Statistics show that the inflation of Switzerland in the year 2019 was at 0.4%, and for the year 2020, the inflation rate was at – 0.4 percent.

Income and Wealth Distribution

Switzerland's highest household average wealth per adult was in 2015, estimated at $561,900 per person. The high average wealth was mainly a result of an increase in the exchange rate of the US Dollar and the Switzerland currency. A few very wealthy people determine Switzerland's high average wealth; however, the median wealth of a Swiss adult was estimated to be five times lower than the average wealth, around 100,900 in 2011.

Conclusion

Switzerland's economy is among the highly ranked economies in the world. One of the main sectors behind the high ranking is the service sector. The main industries boosting Switzerland's economy are the Tourism and the banking industry. Other industries which are part of Switzerland's large free market economy include Pharmaceuticals, insurance, machinery, chemicals, and machinery. Most importantly, Switzerland is among the three countries with a nominal GDP of more than $70,000 and is not a ministate or island.