Brief Review

Snapshot of the Economy

For the second consecutive year, in 2007, the Swiss economy expanded at 11.2%, the fastest rate in 20 years. However, the world economic crisis did take its toll on Switzerland's economic growth in 2008. The economy grew only 1.9%, and further contraction was expected in 2009.

Exports in 2008 climbed 1.3% in real terms and the prices of exported goods rose 3.3%. The value of imports increased 1.6% to 186.84 billion (CHF). The resulting trade balance surplus in 2008 was 19.82 billion (CHF).

The State Secretariat for Economic Affairs (SECO) in January 2009 projected that the economy would only grow 0.8% this year, but would recover in 2010. Growth for 2010 was forecasted to be only 1%. The Swiss National Bank (SNB) was not so optimistic, projecting negative growth in 2010. SNB released a statement in January 2009 forecasting negative growth of between 0.5% and 1.0% for 2010.

Switzerland was ranked as the second most competitive economy in the World Economic Forum's 2008 Global Competitiveness Report, reflecting the country's sound institutional environment, excellent infrastructure, financial market sophistication, macroeconomic stability, world-class educational attainment, and high levels of technological innovation in research and development, which boosts Switzerland's competitiveness in the global economy.

The country ranks number one in the quality of its scientific research institutions, companies spend generously on research and development (R&D), and intellectual property protection is strong. Business activity benefits from a well-developed institutional framework, supported by the rule of law, an efficient judicial system, and high levels of transparency and accountability within public institutions. Switzerland also ranks highly in the quality of its higher education and training, resulting in a more effective work force.