SWITZERLAND

On track towards economic normalcy by 2022

AA1

LOW RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP
USD747,969bn (World ranking 18, World Bank 2020)
Population
8,637mn (World ranking 99, World Bank 2020)
Form of state Confederation (but similar to a federal republic)
Head of government
Guy Parmelin (President of the Swiss Confederation)
Next elections October 2023, legislative
  • Competitive high-income economy
  • Sound political institutions
  • Specialization in high-quality exports for which demand is relatively insensitive to exchange rate moves
  • Healthy public finances
  • Strong external position
  • Overvalued CHF due to safe haven role
  • Strong dependence on financial and export sectors
  • Rising labor costs and stagnant productivity growth
  • Financial sector’s exposure to real estate lending (around 85% of domestic assets are concentrated in mortgages)
  • Unfavorable demographics

Trade structure by destination/origin

(% of total, 2020)

Exports Rank Imports
United States 23.0%
1
19.5% Germany
Germany 15.4%
2
8.2% Italy
China 5.5%
3
7.2% United States
United Kingdom 5.3%
4
6.1% China
France 5.2%
5
5.9% France

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Medicinal and pharmaceutical products 28.3%
1
30.5% Gold, non-monetary (excluding gold ores and concentrates)
Gold, non-monetary (excluding gold ores and concentrates) 22.6%
2
13.6% Medicinal and pharmaceutical products
Organic chemicals 7.2%
3
6.8% Miscellaneous manufactured articles, n.e.s.
Miscellaneous manufactured articles, n.e.s. 5.9%
4
5.1% Road vehicles
Photo apparatus, optical goods, watches and clocks 5.8%
5
3.2% Electrical machinery, apparatus and appliances, n.e.s.
The payment behavior of Swiss companies is very good. Most payments tend to be made in advance or within 30 days.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

  • Payments

  • Court proceedings

  • Insolvency proceedings

Domestic courts are fairly efficient in dealing with disputes in a timely manner; however collecting debt pre-legally remains the most effective option.

Although mechanisms designed to increase debt renegotiation and company rescue have been put into place, liquidation remains the default procedure at present, thus leaving little chance for unsecured creditors to collect debts from insolvent debtors.

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