Switzerland’s economy is one of the world’s most advanced and highly developed free-market economies. The economy of Switzerland ranked third in the 2020 Global Competitiveness Report, as was also ranked first in the world in the 2020 Global Innovation Index.
Switzerland also boasts one of the world’s highest GDPs per capita and a highly skilled labor force. The economy relies on financial services, precision manufacturing, metals, pharmaceuticals, chemicals, and electronics.
About two third of the area of Switzerland is covered with forests, lakes, and mountains. Since Switzerland has no mineral resources, it must import, process, and resell them as products.
Farming is also an important part of the economy. But the production of the Swiss farmers does not fulfill the needs of all people, so Switzerland must rely on imported goods from other countries. The country is a federal republic that is composed of 26 cantons, with federal authorities based in Bern. Switzerland is completely landlocked, and is bordered by Italy, France, Germany, Austria, and Liechtenstein. It is geographically divided into 3 regions – the Swiss Plateau, the Alps, and the Jura – spanning a total area of 41,285 km2 (15,940 sq mi) and land area of 39,997 km2 (15,443 sq mi).
The Swiss population of approximately 8.5 million is concentrated mostly on the plateau, where the largest cities and economic centres are, among them Zürich, Geneva, Basel, and Lausanne.
These cities are home to several offices of international organizations such as the WTO, the WHO, the ILO, the seat of the International Olympic Committee, the headquarters of FIFA, the UN’s second-largest office, as well as the main building of the Bank for International Settlements. The main international airports of Switzerland are also located in these cities.
Small and Medium-Sized Companies
Small and medium-sized enterprises play a fundamental role in the Swiss economy. SMEs form the huge majority of enterprises and account for two-thirds of the jobs in the country. They make a major contribution to national creativity, growth, and prosperity. SMEs are dominant, representing more than 99 % of the country’s economy, with approximately 330,000 companies in Switzerland employing fewer than 250 employees.