Swiss economy, industry and agriculture
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Switzerland is the world's 20th largest economy. Switzerland is one of the most developed and wealthiest countries in the world.
Economy
It is a highly industrialised country with intensive, highly productive agriculture and virtually no mineral wealth. It is among the world's top ten most competitive economies. The Swiss economy is strongly linked to the rest of the world, above all the European Union (80 - 85 % turnover), through industrial cooperation and foreign trade transactions. More than 50 % of all goods from the northern part of Western Europe move in and out of Switzerland. After growing markedly in 1998-2000, the economy has entered a recessionary phase. In 2002 the gross domestic product rose by 0.5% to CHF 417 billion. Inflation was at the 1% mark. The unemployment rate reached 3%. The economy employs 4 million people (57 % of the population). The industrial sector employs 26 % (including 3% in the mechanical engineering sector, 2% in chemicals and 4% in agriculture and forestry) and the service sector 70% (including 16 % in commerce, 6% in banking and insurance and 6% in the hotel and restaurant business). The policy of neutrality in the two world wars has enabled the Swiss economy to avoid ruin.
The Swiss economy benefits from a highly qualified workforce and a reliable service industry. A well-developed pharmaceutical, mechanical engineering and precision engineering sectors. Transnational concerns in the chemical, pharmaceutical and banking sectors. Banking secrecy attracts foreign capital. The banking sector accounts for 9% of gross domestic product.
The weaknesses of the Swiss economy are its limited resources and small size.
There is no minimum wage in Switzerland. But a minimum wage has been introduced since 2017 in the cantons of Neuchâtel and Jura (2nd highest in the world) at 19 EUR per hour or EUR 3,335 per month, from 1 November 2020 in the canton of Geneva (highest in the world) at 21 EUR per hour or EUR 3,785 per month, and from 1 January 2021 in the canton of Ticino (3rd highest in the world) at 18 EUR per hour or EUR 3,241 per month. The Swiss average wage is €5,485 (gross) and €4,502 (net) per month.
Industry
Industry is dominated by large multinational companies that generally compete successfully on the global market and hold leading market positions: Nestlé (food, pharmaceuticals, cosmetics, baby food), Novartis and Hoffmann-la-Roche (chemical-pharmaceutical products), Alusuisse (aluminum), the Swedish-Swiss ABB Group - Asea Braun Boveri (electrical engineering and turbine construction). Switzerland is often associated with the clock factory of the world. Building on tradition and a strong technical culture, the most prestigious watch and jewellery brands are produced here: Rolex, Chopard, Breguet, Patek Philippe, Vacheron Constantin, and others.
There are virtually no mineral resources in Switzerland. Of industrial importance are rock salt and building materials.
Around 42 % of Switzerland's electricity is generated in nuclear power plants, 50 % in hydroelectric power plants and the remaining 8 % in thermal power plants from imported oil. Most of the hydroelectric power plants are located in the Alps, where over 40 artificial lakes - reservoirs - have been created. By 2050, Switzerland will be completely nature-neutral.
Agriculture
Agriculture has a strong livestock orientation (with an emphasis on meat and dairy production) and is characterized by high yields and labour productivity.
It is characterized by a predominance of small farms. On the whole, agriculture provides 56-57 % of the country's food requirements.
Swiss agriculture is one of the best-funded in the world, even though less than 4 % of the population works in agriculture. Switzerland subsidises more than 70 % of its farming compared to 35 % in the European Union. The Agricultural Programme adopted by the country's parliament in 2007 increases agricultural subsidies by CHF 63 million to CHF 14 billion. In addition, Swiss agriculture is protected by a system of protectionist barriers.
Agricultural production in Switzerland varies greatly regionally. In the foothills of the Alps, in the Alps and in the Jura, cattle and dairy farming predominate, while in central Switzerland cereals, potatoes, beets and carrots are grown, and in eastern Switzerland and the canton of Valais fruit is grown. Viticulture is practised in some regions. Exports are mainly hard cheeses such as Emmental, Gruyere and Sbrinz.
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