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MONEY

Nine stats to help explain the famously strong Swiss economy

Switzerland's strong economy is almost mythical and is regularly used as an example (not a good one given the differences) of how Britain can thrive outside the EU. But what is it that gives the Swiss economy its sturdiness? Here are some helpful stats.

Published: 2 August 2019 14:53 CEST
Nine stats to help explain the famously strong Swiss economy
Switzerland exports more coffee than chocolate.Photo: Patronestaff/depositphoto.com

First of all, this is what the Swiss government says about its strong economy:

“The strength of the Swiss economy is largely due to its international outreach and strong intertwining with the economies of other countries. Switzerland has one of the highest export rates as a percentage of gross domestic product. Highly specialised and flexible small and medium-sized companies characterise the technologically advanced industrial sector.

“With a per capita gross national product ranking the second-highest worldwide, Switzerland is a prominent player in the world economy.

“Purchase power stability achieved through traditionally low inflation, low long-term capital costs, a good investment climate, sound public finances and almost no labour strikes guarantee the prosperity and stability of the Swiss economy,” according to a statement on the Swiss government official website.

Here are nine facts about the Swiss economy and how it continues to flourish:

1.     Switzerland has the second-highest gross domestic product (GDP) per capita in the world. At the end of 2015 Swiss GDP per capita stood at CHF 77,943 (approx. EUR 73,000 or USD 81,000). This is largely due to Switzerland's manufacturing sector. 

Photo: alexeynovikov/Depositphotos.com

2.     The European Union (EU) is Switzerland's main trading partner. Around 78% of Swiss imports are from the EU, while 43% of Swiss exports are destined for EU countries.

3.     Switzerland is the world’s leading watch exporter. In 2016, Switzerland exported watch and clock products to the value of CHF 19.4 billion worldwide

Photo: ensuper/Depositphotos.com

4.     Switzerland exports more coffee than chocolate. In 2016, Switzerland exported some CHF 2 billion worth of coffee. This translates to a share 2.5 times that of chocolate and 3 times that of cheese

READ MORE: Switzerland Fourth most competitive nation in the world

5.     Almost all Swiss firms (over 99%) are small and medium-sized enterprises (SMEs). These are companies with fewer than 250 employees.

Photo: rawpixel/Depositphotos.com

6.    Public debt in Switzerland continues to fall. The public debt-to-GDP ratio in Switzerland has fallen considerably in recent years, from 54.6% in 1998 to 34.7% in 2014.

7.     Switzerland has the lowest rate of value-added tax in Europe. 8% is levied on most goods and services, 3.8% on accommodation services, and 2.5% on basic necessities and other everyday items.

Photo: ginasanders/Depositphotos.com

8.     Switzerland invests over CHF 16 billion in research and development annually. This rate of investment is equivalent to around 3% of its gross domestic product. This makes Switzerland the sixth-highest spender on research and development in the world.

Source: Swiss Federal Statistics Office, Federal Customs Administration

9. What Switzerland exports?

In terms of exports the largest share of exported goods are chemical and pharmaceutical products (44.8 percent), machinery and electronics (14.8 percent) and watches (9.2 percent).

 

 

 

 

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MONEY

Can I get financial help in Switzerland if I’m struggling to pay the bills?

Can foreign residents who are struggling to get by receive the same financial help from the state as the Swiss do, and under what circumstances?

Published: 26 February 2024 13:48 CET
Can I get financial help in Switzerland if I'm struggling to pay the bills?

Say you are a foreign resident in Switzerland and find yourself short of funds, and are unable to pay your monthly bills.

Can you count on your canton’s public coffers to help you out?

Much depends on your status in the country.

If you have a residency permit, have been working in Switzerland and contributing to the social security scheme, then you can receive financial assistance, in form of subsidies, from your local authority.

This is how it works

For instance, if the obligatory health insurance premiums exceed 8 percent of the household income, then you are eligible to receive this help.

However, your canton of residence will look not only at your earnings, but at any other financial assets you hold as well.

So if your income is low but you have plenty of money in the bank in the form of savings or other investments, you will not qualify.

Generally speaking, any resident who is a low earner or has a large number of children — regardless of nationality — could be eligible for subsidised premiums, though criteria, as well as amounts, vary from one canton to another.

READ ALSO : How do I apply for healthcare benefits in Switzerland? 

What about housing?

Low-earners (again, regardless of nationality) are entitled to have their rents subsidised, under certain circumstances — the conditions as well as the income threshold is determined by cantonal authorities.

Generally speaking, in order to claim this help, you must prove that you live in the cheapest available housing in your area. (Needless to say, if you reside in a luxury apartment, you can’t ask for rent subsidy.)

If you don’t fulfill this particular condition, you will be told to move to cheaper accommodations before claiming any benefits.

Exceptions to this rule include situations such as a large number of minor children living in the household, which may make relocation — that is, finding a sizeable apartment at a cheaper price — unrealistic.

The amount of rent reduction will be set by the authorities.

Is any other help available?

If you can’t afford anything in Switzerland which, admittedly, is an extreme and rare situation for anyone working full-time and already receiving either health insurance or housing subsidy (or both), then your only other option is applying for welfare.

This, however, should be the absolute last resort if you want to remain in Switzerland and eventually apply for naturalisation, or even have your work permit renewed.

That’s because being on public assistance is grounds for refusal of citizenship — unless all the money is repaid in full in advance of your application.

READ ALSO: Can I still get Swiss citizenship after claiming social benefits? 

What about disabilities?

This falls under the general social security scheme, so if you are working in Switzerland, then you are eligible to receive these benefits.

The only exception may be people from outside the EU /EFTA — unless your country of origin has concluded a social security agreement with Switzerland.

This link provides additional information about these countries.

If you qualify for disability (and medical records confirm this), you can apply for these benefits at the social security office of your canton.

There are some other things you should keep in mind as well:

Not all foreigners who have a residency permit can apply for financial assistance.

If you came to Switzerland on a temporary permit (L or B), then you don’t have access to any benefits.

And if you ‘bought’ your Swiss residency, you can’t resort to any public help either.

The condition of your stay in Switzerland is that you should be self-sufficient enough to live here without having to work or resort to welfare benefits.

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