Economic overview: Switzerland, a fundamentally prosperous and stable modern economy with a per capita GDP roughly 10% above that of the big West European economies, is experiencing short-term difficulties. After recovering slowly in 1994-95 from recession, the Swiss economy remains weak, mainly because of the strong Swiss franc and weak growth in Swiss export market, especially in other European countries. Over the near term, growth may average barely 1%, with more than one-half of this increase resulting from growth in inventories. Weak domestic consumer demand is the principal culprit; stagnation in real disposable income is combining with a reluctance to reduce saving rates in the face of an uncertain employment outlook. Switzerland's leading sectors, including financial services, biotechnology, pharmaceuticals, and special-purpose machines, will therefore be more reliant on export markets at the same time they are being squeezed by the strong franc. Consequently, growth in machinery and equipment investment, for example, is expected to taper off. On the other side, import growth has been fueled by the strong franc; there are growing indications that Swiss manufacturers are substituting imported inputs for domestic ones.
GDP: purchasing power parity - $158.5 billion (1995 est.)
GDP real growth rate: 1.2% (1995 est.)
GDP per capita: $22,400 (1995 est.)
GDP composition by sector: agriculture: 3% industry: 33.5% services: 63.5% (1991)
Inflation rate (consumer prices): 1.8% (1995 est.)
Labor force: 3.48 million (900,000 foreign workers, mostly Italian) by occupation: services 50%, industry and crafts 34%, government 10%, agriculture and forestry 6% (1992)
Unemployment rate: 3.3% (1995)
Budget:
revenues: $31 billion
expenditures: $36.9 billion, including capital expenditures of $NA
(1995)
Industries: machinery, chemicals, watches, textiles, precision
instruments