Switzerland’s Economy by Numbers & Facts

Switzerland punches far above its weight on the global economic stage. Renowned for its political stability, high standard of living, and pristine natural beauty, the country has cultivated a robust and diversified economy.

Many factors contribute to Switzerland’s economic prowess and its strength is reflected in its numbers. Entrepreneurs and businesses seeking to establish themselves in Switzerland will quickly see why this country is so attractive to foreigners—including everyone from individuals and families to Fortune 500 companies.

Switzerland’s Economy At a Glance

Switzerland boasts a robust and diverse economy that reflects its status as a world leader in innovation. The following are a few key pieces of information about Switzerland’s economy:

• Currency: Swiss Franc (CHF)
• Central bank: Swiss National Bank
• Swiss GDP: $884.94 billion in 2023
• Swiss GDP per capita: $99,994.90 in 2023. To put this figure into context, Germany’s GDP per capita was $52,745.80 and France’s was $44,460.80 in the same year.
• Total exports 2022: CHF 278 billion (page 3)
• Total imports 2022: CHF 235 billion (page 3)
• Balance of trade 2022: +CHF 43 billion (page 3)
• Economic Complexity Index (ECI): Rank 2 in 2022

Numbers and Facts that Reveal Switzerland’s Economic Depth

Switzerland’s numbers reveal a strong country that demonstrates resilience in the face of global challenges. The country’s diversified economy, strong financial sector, and innovative industries contribute to its resilience.

1. The Swiss Population Is the Richest in the World

According to 2022 figures, Switzerland made the top rank in the list of wealthiest populations. The average per capita worth in 2023 was $685,000 (CHF 600,000). Switzerland is also home to one of the highest proportions of millionaires in the world as 15.6% of the population owned assets worth more than $1 million in 2022.

That said, according to the OECD, the real GDP growth rate is currently below its potential in 2024. It’s expected to pick up again in 2025.

2. Switzerland Offers Tax-Favourable Conditions

Switzerland is generally a tax-favourable place to live and work. There are three levels of Swiss government: federal, cantonal, and municipal (or “communal”). This means that individuals and businesses are subject to different tax rates depending on their location.

Switzerland is a great place to set up a business partly because of its relatively low corporate income tax (CIT) rate. Federal Swiss Corporation Tax is levied at a flat 8.5% rate. The CIT is tax deductible. This means that direct federal CIT on gross business profits sits at around 7.83%.

Please note:

• Entrepreneurs must also take cantonal and municipal level taxes into account. These vary from place to place. The maximum CIT rate including all three levels of tax ranges between 11.9% and 21%.

• Large globally active companies will now pay at least 15% in tax, as per a tax reform that went into effect on 1 January 2024. The affected companies will need to pay a supplementary tax to bridge the gap between the regular three-level CIT and the new minimum rate.

3. The Swiss Banking Sector Has a Huge Impact on the Economy

In a study published at the end of 2023, BAK Economics predicted that the financial sector accounted for 5.4% of jobs in Switzerland (around 234,600 jobs), and 9.3% of gross value added, contributing CHF 70.9 billion to the Swiss economy. The study estimated that banks and insurers contributed CHF 7.8 billion (7.6%) to public revenues.

Multiplier effects like demand for intermediary services and consumer spending by employees make the importance of the financial sector even more significant. The numbers are predicted to go as high as 10.3% in terms of FTE jobs, 13.3% in gross value added, and 11.7% in tax revenue.

4. Switzerland’s E-Commerce Sector Is Booming

Switzerland’s e-commerce sector is strong, with revenue expected to reach US$13.37bn in 2024. This amount is projected to experience a compound annual growth rate of 10.53% between 2024 and 2029. The International Trade Administration identified media, home electronics, and fashion as particularly strong industries within the e-commerce sector.

Entrepreneurs Find Favourable Conditions to Open Online Businesses

Entrepreneurs will find favourable conditions to start a business in Switzerland as long as they meet the eligibility criteria for setting up a new company. Switzerland is a highly innovative country and is home to a huge number of traditional banks, neobanks, and other FinTech companies like payment processors that can help your vision become a reality.

When setting up a new business, foreign entrepreneurs will need to research the best banks in Switzerland for foreigners and set up a separate merchant account for processing payments. A merchant services provider can help you set up a merchant services account and give you access to a global payment gateway that allows you to accept different currencies and a wide range of payment methods. This is particularly important in Switzerland considering its central European location and close trade links with its neighbours.

5. The EU Is Switzerland’s Key Trading Partner

The European Union is Switzerland’s key trading partner, accounting for 50.1% of Swiss exports and 67.5% of imports in 2021. Switzerland has a highly diverse profile in foreign trade, with top exports ranging from precious metals to pharmaceuticals.

Switzerland’s Biggest Export Is Gold

According to 2022 data, Switzerland’s biggest export was gold, with exports reaching a value of $101 billion. This was followed by vaccines, blood, antisera, toxins, and cultures ($46.7 billion), packaged medications ($45.4 billion), nitrogen heterocyclic compounds ($16.6 billion), and base metal watches ($16.1 billion).

6. The Secondary and Tertiary Sectors Dominate Switzerland’s Economy

Switzerland’s economy is diverse. The products we often associate with the country—watches, pharmaceuticals, and industry—are all part of a diverse secondary sector that continues to boom. Around 25% of the population is employed within the secondary sector. This includes the country’s machinery and metal industries, watchmaking, and the textile industry.

Around 74% of the country’s workforce is employed within the tertiary sector. This includes Switzerland’s famous banking sector, insurance, and tourism.

Switzerland’s primary sector is small, with less than 1% of the population employed in agriculture-based positions. This is despite the country having strong markets for cheese, and also for chocolate and coffee—the latter two being products that are only processed in Switzerland rather than grown there.

7. Switzerland’s Economy Is Dominated by SMEs

It may surprise you to learn that over 99% of Swiss businesses are classed as SMEs, employing fewer than 250 staff members. This is despite Switzerland being a hotspot for Fortune 500 companies.

8. Switzerland Has One of the Lowest VAT Rates in Europe

Switzerland levies an 8.1% VAT rate that is payable on most goods and services. A reduced rate is levied on accommodation, and a 2.6% rate applies to essential everyday items. This is significantly lower than its neighbouring EU countries. The EU mandates a minimum 15% VAT rate, with the average EU VAT rate lying at 21.6% in 2024.

9. Switzerland Is Second on the Index of Economic Freedom

Switzerland is the world’s second freest and Europe’s freest economy according to the Index of Economic Freedom. This makes it one of the world’s four countries that fall in the “free” category according to the 2024 Index.

The freedom of each country’s economy is measured by several factors including property rights, government integrity, judicial effectiveness, tax burden, fiscal health, and financial freedom. Switzerland came in second place behind Singapore.

10. Switzerland Is a Top Coffee Exporter

Switzerland was the world’s second-biggest coffee exporter in 2023, despite not growing any coffee of its own. Switzerland exported an incredible $3,641.66 million in coffee in 2023, coming second only to Brazil.

11. Switzerland’s Currency Is The Swiss Franc

The Swiss Franc (CHF) is Europe’s only remaining Franc. It’s an interesting currency that’s considered a “safe haven.” In other words, the Swiss Franc is expected to either retain or gain value.

Other interesting facts about the Swiss Franc include:

• The Swiss Franc is the legal tender in three regions. Apart from Switzerland, the Swiss Franc is legal tender in Liechtenstein and the Italian enclave of Campione d’Italia.
• Some establishments will accept Euros in Switzerland. The establishment will usually give you your change in CHF.
• Switzerland has six banknotes. The denominations of Swiss Francs are 10, 20, 50, 100, 200, and 1000 CHF. The 1000-CHF note is one of the highest-value notes in the world. Its circulation is an interesting contrast to Europe, where the 500-euro note was withdrawn due to its illicit use in money laundering, tax evasion, and even the financing of terrorism.
• There are seven coins. There are currently seven different coins in circulation: the 5, 10, 20, and 50-centime coins and the 1,2, and 5-franc coins.
• The Swiss Confederation holds the right to mint coins. However, it charges the Swiss National Bank with putting the coins into general circulation.

Cash Is Still Widely Used in Switzerland

Cash is still one of the most popular payment methods in Switzerland, contrasting with Europe, which is seeing a steady move to a cashless society. A study by the Zurich University of Applied Sciences revealed that cash is the second most used in-person payment method in Switzerland in 2024.

Debit cards have 33% of the volume share of total payments in Switzerland, making it the single most popular payment method in the country. This compares to credit cards which have a 13% share of total transactions.

12. Inflation Has Returned to Target Rates

Despite showing resilience through the global financial crisis, the pandemic, and the Russian invasion of Ukraine, Switzerland still faces uncertainty in the face of slowing global growth. With global economic activity slowing, foreign demand and heightened uncertainty are impacting the economy.

Inflation has come down to within the 0-2% target range, but pressures remain and short-term inflation expectations remain at the upper end of this target.

13. The Swiss Economy Is Bolstered by High Spending on R&D

Switzerland spends around 3% of its GDP on research and development (R&D) annually. This works out to approximately CHF 23 billion each year. Around two-thirds of this sum comes from private-sector investment. The emphasis on R&D underlines the country’s commitment to innovation.

The Swiss Economy Is Strong and Stable

Renowned for its stability and prosperity, Switzerland’s economy is underpinned by a strong foundation of innovation and favourable business conditions. Key sectors such as finance, pharmaceuticals, and manufacturing drive the country’s economic growth.

Despite its small size, Switzerland has become a key protagonist on the world economic stage. Its commitment to quality and precision has positioned it as a leader in various industries and made it well-equipped to navigate hurdles and maintain its position as a global economic powerhouse.