| |
| Switzerland |
| Economic
Overview |
| Key
Economic Indications |
| Gross
National Product (GNP) |
US$
264,974 million (1992-94 prices) GNP |
| GNP Growth |
GNP per increased in
real terms at an average of 0.5% per year. |
| GNP
per capita |
US$
43,700 per head (1995). |
| Gross Domestic Product
(GDP) |
360.1 (billion Swiss
Fr.) |
| GDP
Growth Rate |
-0.1%
(1990-96 average) |
| GDP Per Capita |
US$ 24,809 |
| |
| National
Accounts (million Swiss Francs at current prices) National Income
and Product |
 |
1992 |
1993 |
1994 |
| Compensation of
employees |
218,100 |
219,990 |
222,300 |
| Operating surplus |
70,225 |
71,095 |
77,100 |
| Domestic factor
income |
288,325 |
291,085 |
299,400 |
| Consumption of fixed capital |
35,500 |
36,210 |
36,660 |
| (GDP) at factor
cost Gross domestic product |
323,825 |
327,295 |
336,060 |
| Indirect taxes |
20,595 |
21,655 |
21,950 |
| Less subsidies |
5,655 |
6,100 |
6,090 |
| GDP in purchasers values |
323,825 |
327,295 |
336,060 |
| Factor income
received from abroad |
27,715 |
30,685 |
30,745 |
Less factor income paid abroad
|
14,285 |
15,130 |
17,190 |
| Gross national
product |
352,195 |
358,405 |
365,475 |
| Less Consumption of fixed capital
|
35,500 |
36,210 |
36,660 |
| National income
in market prices |
316,695 |
322,195 |
328,815 |
| |
| Balance
of Payments (US $mn) |
|
1992 |
1993 |
1994 |
Export of goods f.o.b.
|
79,870 |
75,424 |
82,625 |
| Import of goods
f.o.b. |
-80,155 |
-73,852 |
-79,294 |
| Trade Balance |
-285 |
1,572 |
3,330 |
| Export of services |
21,065 |
21,476 |
22,785 |
| Import of services |
-11,928 |
-11,511 |
-12,691 |
| Balance on
goods, services and income |
17,189 |
20,682 |
21,970 |
| Current transfers received |
2,531 |
2,484 |
2,571 |
| Current transfers
paid |
-5,484 |
5,317 |
6,046 |
| Current Balance |
14,235 |
17,849 |
18,495 |
Capital account
(net)
|
-43 |
-41 |
-45 |
| Direct investment abroad |
-5,671 |
-8,763 |
-10,549 |
| Direct investment
from abroad |
1,249 |
899 |
3,684 |
| Portfolio investment assets |
-9,698 |
-30,337 |
-16,818 |
| Portfolio investment
liabilities |
3,571 |
12,501 |
912 |
| Other investment assets |
-8,496 |
7,401 |
-22,441 |
| Other investment
liabilities |
3,675 |
-769 |
28,743 |
| Net errors and omissions |
5,596 |
1,654 |
-876 |
| Overall Balance |
5,518 |
-399 |
-1,105 |
Inflation: 1.8% (1995)
Employment: 3,772 (1994)
Unemployment Rate: 5.7% (including those who are
partially unemployed)
Economic Affairs
General
Political stability and peaceful industrial relations combined with
low rates of unemployment, inflation and Switzerland’s reputation
as a financial centre has contributed to high levels of prosperity.
According to World Bank, Switzerland’s GNP was the highest in
the world (1993). Following the electorate's reflection of membership
of EEA, Switzerland introduced measures to simulate the economy through
elimination of anti-competitive practices and abolition of regulations
that hinder commerce.
The Economy in Switzerland is divided into three sectors:
 Agriculture
Industry
Services
Agriculture
Less than 10% of the population is employed in the agriculture sector,
which is considered to be the primary sector. This sector is strongly
supported by the Government. Agriculture (including forestry &
fishing) employed 3.8% of the working population in 1994, and provided
an estimated 2.5% GDP in 1990. The principle cash crops are sugar
beat, potatoes and wheat. Dairy products, notably cheese is also important.
Industry
Industry (including mining and quarrying manufacturing, power and
constructions) employs around 40% of the population. It is considered
the secondary sector. The industry sector exports most of its product.
Services
More than 50% of the population are employed in the services sector,
which is considered as the tertiary sector. This sector includes banking,
insurance, tourism etc. Banking is one of the most important businesses
in Switzerland. Swiss markets account for a significant share of international
financial transactions. The insurance sector is also highly developed,
and Swiss companies are represented throughout the world.
Switzerland draws considerable income from tourism, both in summer
and winter. In 1994, this was equivalent to 13.4% of the value of
merchandise exports. This is the 3rd largest earner of export revenue
with annual receipts of about SFr. 12,800 million.
Investment and Investment Policies
No restrictions
on Investment
Other than some exceptions, such as postal services, the railways,
radio and television, there are no legal restrictions to prevent foreign
investors from acquiring Swiss Companies. The creation of new financial
companies does however require prior authorization from the Federal
Bonding Commission. The purchase of real estate by foreigners is also
strictly regulated.
Company Law
Company law is an integrate part of the Swiss code of obligations.
Switzerland recognizes the following forms of company: the general
partnership, limited partnership, the co-operative society etc. The
most common forms are the corporation and the private limited company.
The Corporation
The minimum authorised share capital, which may be divided into registered
and /or bearer shares with a minimum share value of Swiss Fr. 10 each
must amount to Swiss Fr. 100,000 at the time of incorporation. Although
only 29% need to be paid up capital. At the time of its formation,
there should be a minimum of three shareholders. They are required
to draw up a public deed before a notary public. The Corporation must
be inscribed in the Register of Commerce. The body inscribed in the
Register of Commerce must audit the accounts.
The
Private Limited Company
The authorized capital which may be divided into quotas, maybe a minimum
of Swiss Fr. 20,000 or a maximum of Swiss Fr. 2 mn. The quota holders
are held personally liable for the company’s commitments even
in excess of their quota holdings and up to the full amount of the
authorized capital.
The Branch
If the annual sales of the branch of a foreign company exceed the
sum of Swiss Fr. 100,000, the branch must be inscribed in the Register
of Commerce at its place of domicile. The Manager of a branch could
be a foreigner but should be living in Switzerland.
Swiss
Direct Investment Board
Swiss.Fr/m State at the end of year Personnel abroad
|
1994 |
1995 |
1996 |
Industrialised
Countries
|
118,579 |
132,520 |
1,120,566 |
European Union
|
66,589 |
78,234 |
709,768 |
| EFTA |
6,293 |
717 |
14,751 |
| Central and Eastern Europe |
994 |
1,887 |
61,597 |
| Other European
countries |
547 |
579 |
6,673 |
North America
|
36,967 |
43,990 |
245,971 |
| Other industrialised
countries |
7,190 |
7,115 |
81,806 |
| Newly industrialised countries |
12,188 |
12,477 |
197,204 |
| Asia |
4,846 |
4,647 |
85,784 |
Latin America
|
7,342 |
7,830 |
111,420 |
| Developing
Countries |
16,890 |
19,310 |
120,021 |
| Africa |
1,152 |
1,178 |
24,364 |
| Asia, Oceania |
1,300 |
1,609 |
62,393 |
| Latin America |
14,438 |
16,524 |
33,264 |
| Total |
147,656 |
164,308 |
1,437,791 |
| |
Foreign
Direct Investment in Switzerland
Sw.Fr/m state at the end of year |
|
1993 |
1994 |
1995 |
Industrialised
Countries
|
55,946 |
62,667 |
64,668 |
European
Union
|
34,925 |
39,333 |
44,809 |
| EFTA |
3,344 |
3,726 |
21 |
| Central
and Eastern Europe |
94 |
74 |
116 |
| Other European countries |
68 |
78 |
79 |
North
America
|
13,975 |
15,856 |
16,382 |
| Other industrialised
countries |
3,540 |
3,600 |
3,262 |
| Newly
industrialised countries |
73 |
47 |
65 |
| Developing
Countries |
1,258 |
1,114 |
929 |
| Middle
East |
663 |
598 |
554 |
| Other developing countries |
595 |
51 |
375 |
| Total |
52,277 |
63,827 |
65,662 |
Bi-lateral, Multi-lateral and Regional Agreements
In May 1992, Switzerland applied for membership of the EC (Now EU).
People of Switzerland rejected the membership of the European Economic
Area (EEA). Although Switzerland is not a signatory to EEA it has
been accorded with most of the benefits in order to maintain status
quo.
Free Trade Agreements within EFTA-EU
Switzerland is a founder member of the EFTA (European Free Trade Association).
The dismantling of tariffs by EFTA, in parallel with the European
Economic Community (EEC), resulted in the elimination of custom duties
between the EU, the EFTA countries, and Switzerland.
Most favoured Nation Status
Switzerland accords ‘most favoured nation’ status to all
countries that are members of the World Trade Organization (WTO) and
to any region or nation with which the confederation has signed a
bilateral or multilateral trade agreement. Preferential rates are
accorded to the developing nations.
World Trade Organization
Switzerland formally adhered to the WTO (former GATT). Most of the
existing non-tariff measures were replaced by customs duties.
Other Free Trade Agreements
With the framework of EFTA, Switzerland has concluded various free
trade agreements with the countries of Eastern and Central Europe,
Poland, the Czech Republic, Slovak Republic, Hungary, Romania, Bulgaria,
Lithuania, Latvia and Estonia. It has also signed bilateral agreements
for the protection of investments with some countries as well as double
taxation agreements with a number of them.
Free trade agreements have been signed with countries of South East
Asia, Europe and Israel.
Bilateral trade agreements, double taxation agreements and agreements
for the mutual protection of investments have been signed with a number
of other countries. |
