Economy of Switzerland: the basis, structure and features

The economy of Switzerland is one of the most stable inall over the world. The country is an example of how persistence, work and a competent approach to building a model of economic relations have transformed a small state into a center for capital turnover. In addition to having a developed banking system, Switzerland holds leading positions in production and tourism, which positively influence its status in the world community.

From backwardness to success

For a long time the Swiss economystrongly lagged behind other European states. A protracted agrarian-patriarchal period dragged the state down, blocking the development path. The first steps to success were made in the 16th-17th centuries in mountainous areas, where trade and industry began to develop intensively. There were factories for the production of cotton and silk fabrics, watches. In the XIX century, tourism developed, a new type of sport was founded - mountaineering, which gained worldwide recognition.

Swiss economy

Despite the poor conditions for farming andagriculture, Switzerland has focused on dairy production. All the new branches of industry were being developed, the country increased its exports. At the same time, the railway branch is developing. At the beginning of the 20th century, the National Bank was founded. Switzerland becomes the largest exporter of capital.

Stagnation period

On the eve of World War II and itsDuring the difficult times and Switzerland, the country's economy "got up". The volume of production decreased. But after 1945, the situation began to improve. Exports almost doubled. The economic recovery primarily caused a high demand for industrial equipment of post-war countries and lack of competition. In general, its formation in the second half of the 20th century was uneven: the flowering was followed by a crisis, and vice versa. The political convictions of the country's government played a large role in the development of the economy: maintaining neutrality during world wars and conflicts, Switzerland turned into an advanced state.

The main factor dragging Switzerland down in thepost-war time, there was a high difference in the participation of agriculture and trade in the country's economy. After market conjuncture more or less leveled, the state gained stability and success.

Features of economic development

As early as the 16th-17th centuries, the right decision was made todirection of the country's activities. Switzerland has a territory, most of which is unsuitable for agriculture; There are no minerals other than rich nature. A reasonable manager will understand that it is necessary to create something of his own or to develop rapidly the already invented. So it happened in Switzerland. The high quality of the produced products became known to all states, the share of exports began to grow, and the economy - to flourish. Having obtained enough capital from one industry, the country developed another. So the main directions of light industry and pharmaceutics were mastered. Here, not just new factories opened, but a lot of global concerns have been created, existing to this day.

The main features of the economy in Switzerlandare built primarily on the skilful ability to make the most of their advantages. Despite small areas for farming and cattle breeding, dairy farming was developed, the most beautiful nature used for the development of tourism and hotel business, rough rivers and mountainous relief served as the basis for the development of hydropower. The ability to take everything from virtually nothing - the main essence of the Swiss economy, which turned the European state from backward to advanced.

The current state of the state

Switzerland today is the heart of finance andbanking throughout Europe. The country's economy is a market economy based on international trade and foreign capital turnover. The state has a developed light, pharmaceutical and food industry, engineering. The whole world knows about the high quality of Swiss exported goods - from gastronomy to watches and production equipment.

The features of a market economy in Switzerland, despitea number of its differences from other European countries, it is easy to see: the state practically does not interfere in the activities of enterprises, the market is focused on buyers, there are several forms of ownership. The dynamic development of the country only confirms that the correct strategy for building economic relations has been worked out. Moreover, the situation is equally successful both within the country and in external relations.

What is the basis for the Swiss economy today? First of all, these are banks, which are very numerous here. Taking into account branches for every 1500 people, there is one institution. Besides quantity, high and quality of service. These depositors are carefully kept secret, and it is almost impossible to recognize them to outside parties. The influx of foreign capital strengthens the economic situation of the country and brings great benefits.

Sectoral structure of the Swiss economy

This is one of the most developed states with a highstandard of living and virtually no unemployment. Thanks to the policy of neutrality, the country experienced virtually no losses through world wars. Today, Switzerland is thriving at the expense of developed sectors of the economy, founded in the last century. They include:

  • production of equipment, watches;
  • light industry and pharmaceutical companies;
  • Agriculture;
  • activity of banks;
  • tourism.

switzerland country's economy

Compared with other developed countriesthe number of transnational organizations in Switzerland is large. Their activities significantly affect the economic situation of the country. The state is famous for its well-established credit and financial system, low inflation and unemployment.

Industrial sector

The basis of the Swiss economy is industry,it was thanks to its development that in the XIX century the state began to flourish. Since the 18th century, the country has become known as a watchmaker. Having achieved success in this industry and having adjusted the import, she began to develop the light and food industry. Textiles were in high demand among partners, but after the Second World War, emphasis was placed on metallurgy and the chemical and pharmaceutical industry.

features of the economy in Switzerland

Today, the industrial sector consists of manyproduction enterprises and global concerns. Most of the finished products are exported. Switzerland has established itself as a manufacturer of quality and durable products. The main directions of the country's industry are:

  • Mechanical engineering - production equipment for polygraphy, weaving machines, electrical engineering is produced. About 40% of the products of this industry are exported.
  • Watchmaking is a highlight of Switzerland, almost all finished products are sent abroad for sale. They are known throughout the world and are synonymous with prosperity and quality.
  • Pharmaceutical industry - a drug from Switzerland can be found in the pharmacy of almost every country.
  • Food production - few people have heard about Swiss cheese or chocolate. Here the famous concern Nestle was founded.

Features of the Swiss economy are reduced toa large dispersion of industrial and agricultural output. The average statistical structure of states is mainly based on the second sector. Here you can see the reverse picture.

Foreign economic relations

Foreign trade is an established mechanism of the country,bringing her great profits and world recognition. The Swiss economy is built, in particular, on the significant volumes of exports of manufactured goods, medicines and food products. The main partners are the United States, the EU countries, China, Japan.

features of the Swiss economy

The share of Switzerland's exports is practicallyhalf of GDP, which, of course, is a characteristic feature of the economy of the state. The country is a member of the WTO engaged in the liberalization of world trade. However, Switzerland's domestic market remains closed: sometimes citizens are forced to travel to make purchases abroad.

Agriculture

Despite the fact that one third of the territorySwitzerland is unfit for farming, and another quarter is occupied by forests, the state provides itself with meat and dairy products, as well as wheat. This food is even produced in abundance. Nevertheless, about 40% still have to be imported.

the essence of the Swiss economy

The Swiss economy aims to useits strongest sides. Even in negative conditions for the development of agriculture, success has been achieved in dairy production and animal husbandry. Swiss cheeses have become one of the most famous and delicious in the world. The main agricultural products are beets, potatoes and wheat. Agriculture is most common in the cantons of Zurich, Friborg, Argau, Waugh, Bern, which is explained by their geographical location.

Energy and Mineral Resources

Mountainous terrain in conjunction with stormy riversprovided the country with hydropower, which accounted for about half of all the generated energy. For a long time, five nuclear power plants functioned, and the projects numbered another 10. After the accident at Fukushima, the government revised its views on the use of nuclear power plants. A strategy was developed that assumes a complete abandonment of nuclear energy until 2050. However, some political parties in 2016 oppose the complete abandonment of nuclear power plants, since no alternative has been found, and nuclear energy provides about half of the state's electricity needs. It is also noted that it is in Switzerland that nuclear power plants are the most reliable and durable.

on which the Swiss economy is built

Hydropower development main sectorThe use of minerals, which in the country is practically nonexistent. Oil and gas have to be imported from abroad. Reasonable use of natural resources, in this case mountainous terrain, positively affects the economy of the state. Due to the fact that alternative sources of power generation have not been found, the issue of the NPP withdrawal remains unresolved.

Banking activity

The structure of the Swiss economy is not onlyfrom the production and agricultural sector. Attraction of foreign capital is one of the main methods of development of the state. Swiss banks are considered the most promising and reliable. Only in this country, a depositor can not worry about the safety and security of his savings. All operations with cash are carried out using a special code. No one has the right to know the identity of the user of the Swiss bank. Special services may require data only if it is confirmed that a criminal offense has been committed.

sectoral structure of the Swiss economy

The unwavering neutrality of Switzerland attractsinvestors from different countries. Even in the days of the First and Second World War, the statesmen of the participating countries preferred to "hide" their blood precisely in Swiss banks. The continuing inflow of capital positively affects the economy of Switzerland. The funds are used for the development of industry, small enterprises or as loans to other states. In Zurich, there is a world stock exchange for gold trading. The welfare of the whole planet depends on the course being set.

Transport junction

Highly developed communication with other parts of the worldSwitzerland boasts. The economy of the country, aimed at large volumes of exports, requires a good road junction. Railways of a small state are some of the best in Europe. Almost all of them are electrified.

Switzerland is accessible only one shipping way tothe sea - the river Rhine in the territory of Basel - Rheinfelden. The length of the site is 19 kilometers. A river port has been built here for the dispatch of production goods to other countries.

Tourism and Hospitality

More than 70% of the working-age population of Switzerlandis engaged in the service sector. It was here that the hotel business was born. Tourism brings a good income: annually to look at the Alps comes about ten million people, leaving the country a considerable amount. It is worth noting that for the high level of service and the charm of unspoiled nature, visitors without regret pay all bills.

Economy of Switzerland and its featuresfunctioning are reduced to a high concentration on the strongest sides of the state. Virtually no country has been able to put together all its advantages and direct them in the right direction. Switzerland is an example of how one can build the strongest economy in the world from a favorable territorial position.

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