Economic Overview

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

For centuries Switzerland has adhered to a policy of armed neutrality in global affairs, which has given it the access and political stability to become one of the world's wealthiest countries, with an efficient market economy. Its standard of living, industrial productivity and quality of education and healthcare systems are among the highest in Europe. The Swiss economy was relatively resilient throughout the pandemic, thanks to its specialisation in the financial sector and in the chemical and pharmaceutical industries. After a positive first half of the year 2022, the Swiss economy had to face a deteriorating global outlook due to high energy prices and the uncertainty linked to Russia’s invasion of Ukraine (natural gas makes up 15% of Swiss energy consumption, of which half was imported from Russia prior to the war). For the year as a whole, the IMF estimated growth at 2.2% of GDP driven by the service sector: in particular, consumer spending has picked up substantially in leisure, hospitality and travel since the lifting of public health restrictions. For 2023, a weaker foreign demand is expected to slow trade and investment, as low consumer confidence should moderate consumption, resulting in an overall forecast growth of 0.8% (IMF). With the normalization of the global situation, the IMF expects the economy to resume growing at a faster pace in 2024 (+1.8% of GDP).

As the support measures taken to mitigate the impact of the COVID-19 pandemic were phased out during 2022, the total government budget deficit was estimated at 0.2% of GDP, also thanks to a rebound in tax revenue as companies in the financial and pharmaceutical sectors recorded strong performances. The budget is expected to return into positive territory over the forecast horizon, at +0.3% of GDP this year and +0.4% in 2024 (IMF). Similarly, the debt-to-GDP ratio – at 40.3% in 2022 – should follow a downward trend (39.1% in 2023, with a further decline to 37.5% in 2024). Despite the tense global situation, inflation in Switzerland remained modest by international standards: in 2022, headline inflation was estimated at 3.1%, and the Swiss National Bank opted for several interest rates hikes after seven years of negative rates. For 2023 and 2024, the IMF expects the inflation rate to return closer to the Central Bank’s 2% target (at 2.4% and 1.4%, respectively), although the challenging international environment is likely to exert increasing pressure on the more cyclical segments of export-oriented industries. Switzerland remains high atop the list of preferred tax havens due to its low taxation of foreign corporations and individuals. The flow of overseas wealth to the country has come in for much criticism in past years, due to concerns over tax evasion. However, after signing an agreement on the automatic exchange of information with the European Union, Switzerland put an end to bank secrecy. Since then, Swiss banks are required to share their clients' information with foreign tax authorities.

Following a strong first semester of 2022, employment growth recorded a slowdown in line with the economic conjuncture, with unemployment starting to edge up in the fourth quarter. The average annual unemployment rate was estimated at 2.2% for 2022, with a projected rise in 2023 (2.4% - IMF). Overall, Switzerland is one of the wealthiest countries in the world, with a GDP per capita (PPP) estimated at USD 84,469 in 2022 by the IMF. Nevertheless, according to the latest data available from the Federal Statistical Office, 8.5% of the Swiss population is affected by income poverty.

Foreign Trade

The Swiss economy is extremely open to foreign trade, which represents 131% of the country’s GDP (World Bank – latest data available). According to official figures from the Federal Statistical Institute, in 2021, exports were led by chemical products (50.4% of the total), machines and electronics (12%), watches (8.6%), precision instruments (6.7%), metals (5.6%), and jewellery (4%). As per imports, chemical and pharmaceutical products were the main category (27.3%), followed by machines and electronics (16.3%), vehicles (8.8%), metals (8.1%), and textiles, clothing, shoes (6.2%).

At country level, the United States absorbed 18% of Swiss exports, thereby dethroning Germany (17%) as the top sales market for the first time since 1954. Other major destinations for the country’s exports were China (6%), Italy (6%), France (5.8%), and Spain (4.8%). Overall, Europe accounted for 71.2% of total exports. Germany (27.4% share), Italy (9.4%) and China (8.9%) remained Switzerland's three principal procurement markets in 2021, ahead of France (7.6%), the U.S. (6%), and Austria (4.5% - Federal Statistical Office data).

Switzerland has a structurally large trade surplus. Exports rely mostly on high-tech sectors, which are less dependent on the international economic situation than other industries. According to WTO data, in 2021, Switzerland's exports of goods amounted to USD 380.1 billion while imports stood at USD 324 billion (+19% and +11% compared to one year earlier, respectively). As with regard to services, Switzerland exported USD 134.7 billion (+19.3%), while it imported USD 142.3 billion (+25%). The country’s trade surplus was estimated at 11.9% of GDP in 2021 by the World Bank (was 6.4% one year earlier). According to preliminary figures from the Federal Customs Administration, in the first eleven months of 2022, Swiss exports totalled CHF 244.5 billion whereas imports stood at CHF 215.8 billion (in real terms).

COVID-19 Country Response

COVID-19 epidemic evolution

To find out about the latest status of the COVID-19 pandemic evolution and the most up-to-date statistics on the COVID-19 disease in Switzerland, please visit the dedicated page on the website of the Swiss Federal Office of Public Health (FOPH). Additional information is available on the portal SwissInfo.
For the international outlook you can consult the latest situation reports published by the World Health Organisation as well as the global daily statistics on the coronavirus pandemic evolution including data on confirmed cases and deaths by country.

Sanitary measures

Latest information on the public health situation, relevant advice and COVID-19 safety measures are available on the website of the Swiss Federal Office of Public Health (FOPH). Further details and daily updates can be accessed on the portal SwissInfo.

Travel restrictions

The COVID-19 situation, including the spread of new variants, evolves rapidly and differs from country to country. All travelers need to pay close attention to the conditions at their destination before traveling. Regularly updated information for all countries with regards to Covid-19 related travel restrictions in place including entry regulations, flight bans, test requirements and quarantine is available on TravelDoc Infopage.
It is also highly recommended to consult COVID-19 Travel Regulations Map provided and updated on the daily basis by IATA.
The US government website of Centers of Disease Control and Prevention provides COVID-19 Travel Recommendations by Destination.
The UK Foreign travel advice also provides travelling abroad advice for all countries, including the latest information on coronavirus, safety and security, entry requirements and travel warnings.

Import & export restrictions

For the information on all the measures applicable to movement of goods during the period of sanitary emergency due to the COVID-19 outbreak (including eventual restrictions on imports and exports, if applicable), please consult the portal of the Federal Customs Administration.
For a general overview of trade restrictions due to COVID-19 pandemic, please consult the section dedicated to Switzerland on the International Trade Centre's COVID-19 Temporary Trade Measures webpage.

Economic recovery plan

For information on the economic recovery scheme put in place by the Swiss government to address the impact of the COVID-19 pandemic refer to the website of the Federal Department of Economic Affairs, Education and Research (in French, German or Italian). Further information can be accessed on the website of the Federal Department of Finance and on the portal Covid19.easygov.swiss (in French, German or Italian).

For the general overview of the key economic policy responses to the COVID-19 outbreak (fiscal, monetary and macroeconomic) taken by the Swiss government to limit the socio-economic impact of the COVID-19 pandemic, please consult the section dedicated to Switzerland in the IMF’s Policy Tracker platform.

Support plan for businesses

For the information on the local business support scheme established by the Swiss government to help businesses to deal with the economic impacts of the COVID-19 epidemic on their activity, please consult the website of the Federal Department of Economic Affairs, Education and Research (in French, German or Italian). Further info can be found on the government’s SME Portal.
For a general overview of international SME support policy responses to the COVID-19 outbreak refer to the OECD's SME Covid-19 Policy Responses document.
You can also consult the World Bank's Map of SME-Support Measures in Response to COVID-19.

Support plan for exporters

To source information regarding the support plan for exporters put in place in Switzerland, visit the website of the Federal Department of Economic Affairs, Education and Research and that of Swiss Export Risk Insurance. Further information can be accessed on the portal Switzerland Global Enterprise (S-GE).