Over the last years, the public finances of many developed countries have deteriorated. However, Switzerland constitutes an exception to this trend and as a result, its public finances remain healthy and strong, confirming the remarkable stability and prosperity of the country since the 19th century.
With a Government Debt to Gross Domestic Product ratio below 50%, Switzerland is rightly considered by the investment community as a ‘safe heaven’. It is also notable that Switzerland was able to reduce its debt over the last years and that average unemployment rate over the last decade was less than 4%.
Switzerland’s economic prosperity is driven by a balanced mix of companies and business sectors. On the one hand, over 300,000 small and medium size companies (SMEs) make up the basis of the country’s economy. On the other hand, Switzerland hosts over 1,000 multinational corporations. Considered together, these entities make up a value-added economy at the leading edge of innovation and quality.
The cities of Zurich and Geneva are among the most important financial centers globally. As a result, the Swiss banking sector is a significant component of the Swiss economy; with its long tradition and high efficiency, it contributes more than 10% to Switzerland’s GDP.
The Swiss banking sector is recognized and appreciated for its discretion, honesty, and sense of fiduciary duty. It is thus not surprising that five Swiss banks feature among the Top 20 private banking institutions globally.
In addition, Switzerland’s consensual and stable political environment, guarantees that extreme and adverse changes in regulation and taxation, are not likely to materialize abruptly. Such stability is essential for the design and execution of financial plans and investment projects.
The combination of healthy public finances, a diversified economy, and the stable political and macroeconomic environments, underscores the vital importance of choosing a Swiss partner to safeguard your interests.