Switzerland: Economic outline
For centuries Switzerland has adhered to a policy of armed neutrality in global affairs, which has given it the access and political stability to become one of the world's wealthiest countries, with an efficient market economy. Its standard of living, industrial productivity and quality of education and healthcare systems are among the highest in Europe. In 2024, real GDP grew by an estimated 1.3%, up from 0.7% in 2023, driven by a strong rebound in private consumption. Export growth was robust, supported by significant recoveries in the chemical and pharmaceutical sectors. Overall growth was mainly driven by the expanding chemical-pharmaceutical industry, while the rest of the manufacturing sector contracted and services experienced below-average growth. GDP is projected to grow by 1.3% in 2025, before accelerating to 1.8% in 2026 (IMF), on the back of improving domestic demand, lower inflation, better financing conditions, and rising employment. However, export growth faces risks from weak external demand, particularly in Germany, and a strong domestic currency.
In 2024, the general government balance improved to 0.7% of GDP, mainly due to strong performance by social security funds, supported by a stable economic environment. The surplus is expected to narrow to 0.4% of GDP in 2025, driven by higher defence spending and a deferred capital injection for the state rail operator, and further to 0.2% in 2026 as costs from the 13th-month pension, approved by public initiative in March 2024, take effect (data IMF). Public finance management remains anchored by the federal debt brake rule, which mandates cyclically adjusted fiscal balances at the federal level each year. Switzerland’s public finances are a key rating strength, with general government debt projected at 31.9% of GDP by the end of 2024. Debt levels are expected to decline to 29.8% of GDP by 2026, supported by nominal economic growth and stable primary surpluses. All public debt is denominated in local currency, with an average maturity of 10.5 years. As per the latest governmental figures, average annual inflation was 1.1% in 2024 (down from 2.1% one year earlier), driven mainly by higher housing rental and electricity prices. In contrast, prices for medicines, gas, and second-hand cars decreased. Domestic product prices rose by 1.9%, while imported product prices fell by 1.5%. The IMF forecasts inflation at 1% this year and in 2026. Switzerland remains high atop the list of preferred tax havens due to its low taxation of foreign corporations and individuals. The flow of overseas wealth to the country has come in for much criticism in past years, due to concerns over tax evasion. However, after signing an agreement on the automatic exchange of information with the European Union, Switzerland put an end to bank secrecy. Since then, Swiss banks have been required to share their clients' information with foreign tax authorities.
Unemployment remained low in 2024 - at 2.4%, although slowly rising from a historic low - and should be stable in the near term. Boosting participation in the labour market, particularly among mothers and older workers, would help reduce labour shortages. Overall, Switzerland is one of the wealthiest countries in the world, with a GDP per capita (PPP) estimated at USD 98,145 in 2024 by the IMF. Nevertheless, according to the latest data available from the Federal Statistical Office, 8.2% of the Swiss population is affected by income poverty.
Main Indicators | 2023 (E) | 2024 (E) | 2025 (E) | 2026 (E) | 2027 (E) |
GDP (billions USD) | 894.81 | 942.27 | 999.60 | 1,045.77 | 1,085.66 |
GDP (Constant Prices, Annual % Change) | 0.7 | 1.3 | 1.3 | 1.8 | 1.2 |
GDP per Capita (USD) | 101,510 | 106,098 | 111,716 | 116,005 | 119,534 |
General Government Balance (in % of GDP) | 0.2 | 0.7 | 0.4 | 0.2 | 0.2 |
General Government Gross Debt (in % of GDP) | 33.3 | 31.9 | 30.8 | 29.8 | 29.0 |
Inflation Rate (%) | 2.1 | 1.3 | 1.0 | 1.0 | 1.0 |
Unemployment Rate (% of the Labour Force) | 2.0 | 2.4 | 2.5 | 2.5 | 2.5 |
Current Account (billions USD) | 61.77 | 77.34 | 76.24 | 83.85 | 82.95 |
Current Account (in % of GDP) | 6.9 | 8.2 | 7.6 | 8.0 | 7.6 |
Source: IMF – World Economic Outlook Database, 2016
Note: (e) Estimated Data
Monetary Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
Swiss Franc (CHF) - Average Annual Exchange Rate For 1 GBP | 1.33 | 1.27 | 1.30 | 1.25 | 1.20 |
Source: World Bank, 2015
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Latest Update: February 2025