National economy of Switzerland - industries, GDP and prosperity level

Switzerland is recognized as one of the most stable countries in the world. The country's policy has historically been oriented towards improving the quality of life of every single citizen. The absence of destructive wars has become an excellent tool for creating a strong and indestructible economic structure. Today, Switzerland is the true banking and financial heart of all Europe. The economy of the country is based on the market relations and the turnover of the foreign capital. Switzerland has created ideal conditions for both small and large entrepreneurs. The state doesn’t interfere in the activities of enterprises at all. The production fully meets all the requests of the average buyer. Successful economic relations exist not only within the country, but also in the international arena.

The basis of the country's economic development is banking. Statistics show that approximately one and a half thousand citizens of the country own at least one financial institution. Despite a large number of banking structures, the quality of their services is considered one of the best in the world. The country has developed a strict system for controlling the security of all personal data of depositors. They are not available to outside parties. That is why many wealthy foreigners seek to keep their capital in Switzerland. The influx of investments guarantees the country a stable economic situation and a gradual development.

Switzerland is famous throughout Europe for almost complete absence of the unemployment. People here are hardworking. The main production sectors of the economy were discovered in the last century. To the date, the most financially profitable industries, besides banks, are represented by watchmaking companies, light and pharmaceutical industry, agriculture, and tourism. The Swiss watch industry has gained the worldwide fame. All production assets are concentrated in Geneva, Tun, Bern, and La Chaux-de-Fonds. About 95 percent of all watches are exported. The largest enterprises are Richemont, Swatch Group, Rolex, and Patek Philippe. Copyright www.orangesmile.com

There are very few minerals in Switzerland. Despite the mountainous terrain of the country, the rocks are poor. Numerous hydroelectric stations, which generate the cheap electricity are in the Alps. They generate about half of the total output. In general, industries that don’t require a large amount of raw materials and highly skilled labor, became more developed. Swiss nuclear power plants are considered to be the most reliable and safe, although the domestic policy of the state restricts the expansion of this type of facilities until 2050. Oil and gas are imported only from abroad.

About 75 percent of all working-age population of Switzerland works in the sphere of tourist services. Hospitality takes its roots from this country. Annually, only about 10 million tourists come to the Alps, and the cost of rest is considered high enough. Therefore, the percentage of the funds brought by the tourism business is quite high. Agriculture of the country is oriented to livestock raising, which makes about 78 percent of all agricultural products. Most of the milk is used to produce various Swiss cheeses. Approximately 60 percent of rural lands have been plowed. Cereals are insignificant, but vineyards have been developing very actively in recent years. At the same time, the entire agricultural complex is not able to meet the needs of the population. The remaining 40 percent is imported from abroad.

The textile industry is one of the most important places in the construction of the economic structure. The leading position in the food industry is taken by the Nestle Corporation. The main assets of the chemical and pharmaceutical industry belong to Novartis and Hoffmann-la-Roche. Swede-Swiss concern ABB is engaged in the manufacture of turbines and electrical engineering. The mechanical engineering is focused on forge-and-press equipment and high-precision metalworking machines. In general, there are very few large enterprises in Switzerland. The economy is based on small single companies and organizations. The transport connection in Switzerland occupies a very important position in the system of European transport interchanges. The country is crossed by many important highways, in spite of the fact that it was necessary to struggle with a mountainous relief, constructing tunnels, viaducts, and bridges to build them.

The foreign trade brings a huge profit to the country. The largest percentage of exports are manufactured goods, medicines, and food. The main trading partners of the country are the USA, Europe, China, and Japan. Switzerland is the seventh country in the world in per capita income. Some of the most prosperous people in Europe live there. The per capita income in 2014 was about 89 thousand dollars. The national income of Switzerland in 2014 was about 734 billion dollars. In recent years, aging of the population is increasing, which causes some imbalance in the retirement sphere. The gold reserves of Switzerland are simply amazing. Each hotel owns at least a hundred ounces of the pure gold.