Switzerland

IV

Economy

Switzerland has a highly developed industrialized economy and the highest standard of living in the world. The country’s gross national product is about US$366 billion, yielding an annual income per head of US$58,050 (World Bank estimates). The gross domestic product (GDP) in 2006 totalled US$380 billion. Switzerland’s GDP is 10 per cent above that of other major European economies.

Trade and services, including banking and finance, pharmaceuticals, and tourism, are the dominant sectors of the Swiss economy, accounting for just under half of all employment. Annual growth is on average 1 per cent. Out of a labour force of 4.25 million in 2006, around 67 per cent were in service industries; 29 per cent, industry and crafts; and 4 per cent, agriculture and fishing. The annual national budget in 2002 included US$52,916 million in revenue and US$53,532 million (2002) in expenditure.

A

Agriculture, Forestry, and Fishing

Although Switzerland is self-sufficient in meat and wheat, neither the soil nor the climate favours agriculture, and the country has to import much of its food requirements and heavily subsidize farmers. Most farms are family enterprises and small in size. The leading agricultural products in 2006, with annual output in tonnes, included sugar beet (1 million), wheat (540,700), potatoes (392,000), grapes (128,070), milk, and cheese. Livestock included about 1.55 million cattle, 1.65 million pigs, 449,300 sheep, 56,300 horses, and 7.93 million poultry.

Production of timber in Switzerland in 2006 was 5.70 million cu m (201 million cu ft), but the industry has been harmed by air pollution, which has damaged more than 35 per cent of the country’s forests. Most of the harvest is used to make either sawn timber or paper. Fishing is of minor importance, with catches of fish such as salmon and trout—primarily from Lake Geneva, Lake Neuchâtel, Lake Constance, and their tributary rivers—totalling about 2,689 tonnes in 2005.

B

Mining

The Swiss mining industry is not of major importance. Annual mineral production includes rock salt (about 400,000 tonnes) and cement (about 4.4 million tonnes).

C

Manufacturing

Just over 20 per cent of the Swiss labour force is employed in manufacturing. The principal products are precision instruments, machine tools, chemicals, pharmaceuticals, textiles, and watches. Large numbers of watches are exported annually. Other important manufactures include textiles, clothing, footwear, chemicals, refined metals, foodstuffs (notably chocolate), wood products, and paper. Swiss handicrafts, such as music boxes, embroideries, lace, and carved wooden objects, are widely prized.

D

Energy

Switzerland has great potential hydroelectric-power resources and some 54 per cent of its electricity is produced in hydroelectric facilities. Around 41 per cent is generated in nuclear power plants. In 1990 more than half of Swiss citizens voted for a ten-year moratorium on new nuclear plant construction. Output in 2003 was about 63 billion kWh.