Switzerland

Switzerland is a landlocked country in Central Europe. Covering an area of 41,290 km², it features a mountainous landscape dominated by the Alps in the south and the Jura in the northwest, with a central region of hills and plains. As of 2023, Switzerland’s population stands at 8.7 million. The main cities include Zurich (420,000 inhabitants), Geneva (204,000), Basel (175,000), and the capital, Bern (134,000 inhabitants).

Economic Overview

Switzerland’s GDP in 2023 is estimated at 870 billion Swiss Francs (CHF), with a growth rate of +1.5% over the previous year. The GDP per capita stands at 100,000 CHF, among the highest globally. Switzerland enjoys one of the most advanced and competitive economies, with leading sectors such as pharmaceuticals, finance, and technology. Swiss exports totaled 355 billion CHF in 2023, with the EU, the United States, and China as primary trading partners. Imports reached 294 billion CHF in the same year, resulting in a trade surplus of 61 billion CHF. Inflation was moderate, at +1.8% in 2023.

Switzerland’s unemployment rate is historically low and stood at 2.1% in 2023, with youth unemployment at 5%. The average gross monthly salary is 6,500 CHF, while the minimum wage varies by canton, averaging 4,000 CHF. Switzerland has a low poverty rate, with 7% of the population considered at risk of poverty or social exclusion.

Forecast

The 2024 forecast projects economic growth of 1.8%, supported by strong domestic demand and financial sector stability. Inflation is expected to remain moderate at around 2%, while unemployment is projected to stay low at approximately 2.0%. The export sector will continue to benefit from the competitiveness of the high-tech and pharmaceutical industries.

Country Risk

Switzerland is considered one of the safest countries globally for investors due to its political stability, strong economy, and transparent legal system. Despite high private debt and increasing housing pressures, country risk remains very low.

Foreign Direct Investment (FDI)

In 2022, foreign direct investment (FDI) in Switzerland reached 85 billion CHF. The most attractive sectors were pharmaceuticals, finance, and technology. Switzerland is also a major foreign investor, with Swiss capital present in numerous global markets.

Geopolitical Analysis

Neutrality and International Relations

Switzerland is renowned for its policy of neutrality, maintained for centuries and formally recognized by major powers in the Treaty of Vienna of 1815. Despite this neutrality, Switzerland is an active member of the United Nations (UN) and hosts important international organizations in Geneva, such as the Red Cross and the World Trade Organization (WTO).

Relations with the European Union

Switzerland is not an EU member but is closely integrated with the bloc through a series of bilateral agreements regulating trade, migration, and cooperation on various issues. About 60% of Swiss trade is with EU countries. However, relations can be tense, especially regarding Switzerland’s financial contributions to European cohesion funds and rules on the free movement of people.

Transatlantic Relations and Relations with China

Switzerland maintains strong economic and diplomatic ties with the United States, one of its main trading partners, especially in the pharmaceutical and financial sectors. At the same time, it has developed close relations with China in recent years, with significant Chinese investments in infrastructure and energy sectors.

Security and Migration Policy

Domestically, Switzerland is considered one of the safest countries in the world, with a low crime rate. Although its migration policy is restrictive, it is seen as fair, with orderly management of migration flows, which saw a net increase in immigration in 2023, particularly from European and African countries.