Economy of Switzerland: the basis, structure and features

The Swiss economy is one of the most stable in the world. The country is an example of how persistence, labor 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 economy lagged far behind other European countries. The 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.

Despite the poor conditions for agriculture and agriculture, Switzerland has focused on dairy production. All the new branches of industry were being mastered, 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.

Period of stagnation

On the eve of World War II and on its way, hard times are also under way in Switzerland: the country's economy has "risen". Production volumes have decreased. But after 1945 the situation began to improve. Exports almost doubled. The rise in the economy was primarily due to the high demand for industrial equipment of post-war countries and the 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 big role in the development of the economy: maintaining neutrality during world wars and conflicts, Switzerland turned into an advanced state.

The main factor dragging down Switzerland in the postwar period was the 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

Back in the XVI-XVII, the right decision was made to direct 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. Not just new factories opened here, but a lot of global concerns have been created, which exist to this day.

The main features of the economy in Switzerland are built primarily on the skilful ability to make the most of their advantages. Despite small areas for agriculture and cattle breeding, dairy farming was developed, the most beautiful nature was used for the development of tourism and hotel business, rough rivers and mountain relief formed 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 into the foremost.

The current state of the state

Switzerland today is the heart of finance and banking 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 the market economy in Switzerland, despite a number of its differences from other European states, 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 was 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. With branches for every 1500 people, there is one institution. Besides quantity, high and quality of service. These depositors are carefully classified, and it is almost impossible to recognize them to outside parties. The inflow of foreign capital strengthens the economic situation of the country and brings great benefits.

Branch structure of the Swiss economy

This is one of the most developed countries with a high standard 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.

Compared to other developed countries, the 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 is 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 great demand among partners, but after the Second World War, emphasis was placed on metallurgy and the chemical and pharmaceutical industry.

Today, the industrial sector consists of a multitude of manufacturing 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 - the production equipment for polygraphy, weaving looms, 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 - you can find a medicinal product from Switzerland 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.

The features of the Swiss economy are reduced to a large dispersion of industrial and agricultural volumes. The average statistical way of the states is based basically on the second sector. Here you can see the reverse picture.

Foreign economic relations

Foreign trade is an established mechanism of the country, bringing to it a great profit and world recognition. The Swiss economy is based, 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.

The share of Switzerland's exports is almost half of GDP, which, of course, is a characteristic feature of the state's economy. The country is a participant in 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 entire territory of Switzerland 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 economy of Switzerland is aimed at using its 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

The mountainous terrain in combination with stormy rivers provided the country with hydropower, which accounted for about half of all the energy produced. 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, which 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.

The development of hydropower is the main sector of the 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 decommissioning of nuclear power plants remains unresolved.

Banking activities

The structure of the Swiss economy consists not only of the production and agricultural sectors. 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 the investor can not worry about the safety and security of his savings. All operations with funds are carried out using a special code. Nobody has the right to know the identity of the user of the Swiss bank. Special services may require the provision of data only if it is confirmed that a criminal offense has been committed.

The unshakable neutrality of Switzerland attracts investors from all over the world. Even in the days of the First and Second World War, the representatives of the participating states 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.

Traffic junction

Highly developed communication with other parts of the world can boast of Switzerland. 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 to the 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 Switzerland is employed 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 untouched nature, visitors without regret pay all bills.

The Swiss economy and its functioning characteristics are reduced to a high concentration on the strongest aspects 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 from the advantageous territorial position it is possible to build the strongest economy in the world.