apparelindia - Apparel Export Promotion Council

Focus Country
Market Focus Report on
Switzerland
The economy of Switzerland is one of the world's most stable economies. Its policy of longterm
monetary security and political stability has made Switzerland a safe haven for investors,
creating an economy that is increasingly dependent on a steady tide of foreign investment.
Because of the country's small size and high labor specialization, industry and trade are the
keys to Switzerland's economic livelihood. Switzerland has achieved one of the highest per capita
incomes in the world with low unemployment rates and a balanced budget. The service sector has
also come to play a significant economic role.
Switzerland's economy is peaceful and prosperous. It is a
modern market economy with low unemployment with highly
skilled labour force, and has per capita GDP, among the highest
in the world. The major sectors contributed to the Switzerland's
economy are highly developed service sector, led by financial
services, and a manufacturing industry that specializes in hightechnology,
knowledge-based production.
The Swiss have brought their economic practices largely
into conformity with the EU's, to enhance their international
competitiveness, but some trade protectionism remains,
particularly for its small agricultural sector.
The fate of the Swiss economy is tightly linked to that of
its neighbours in the euro zone, which purchases half of all
Swiss exports. The global financial crisis of 2008 and resulting
economic downturn in 2009 stalled export demand and put
Switzerland in a recession. The Swiss National Bank (SNB)
during this period effectively implemented a zero-interest rate
policy to boost the economy as well as prevent appreciation of
the franc, and Switzerland's economy recovered in 2010 with
2.7% growth.
Switzerland Trade Agreements and Arrangements
Switzerland has close relations with the European Union on
the political, economic and cultural levels. These relations are
Figure 01
governed by a whole structure of bilateral agreements concluded
over the years between Switzerland and the EC/EU.
Exiting Free Trade Agreements
Negotiations concluded
EFTA Declaration on co-operation
Negotiations in progress/under preparation
Joint Feasibility Study/exploratory contacts
32
APPAREL INDIA