Switzerland

Economic indicators

Switzerland has a highly successful market-based economy. Its standard of living, industrial productivity, quality of education, and health-care are higher than any other European country. The GDP growth rate was 3.2% in 2006 and 2.4% in 2007. The IMF forecasts a slowdown to 1.6% in 2008. The economy is heavily dependent on foreign guest workers, constituting approximately 20% of the labour force. The public finances are improving, and the general government accounts are likely to record a substantial surplus over 2007-08. Inflation is low (1% in 2007), and unemployment is under control (arround 2.5%).

Main sectors of industry

Agriculture contributes nearly 1.5% to the GDP and employs less than 5% of the active population (only 10% of the land is suitable for cultivation). The primary agricultural products are cattle and dairy products. Swiss authorities grant numerous direct subsidies to farmers in order to meet strict ecological criterion such as soil protection. Organic production is in full boom. Mineral resources are hardly present. Tourism, which adds significantly to the economy, helps to balance Switzerland's trade deficit. Electricity is generated chiefly from hydro-electrical and nuclear power sources. Switzerland has a worldwide reputation for the high quality of its manufactured products which include watches, motors, generators, turbines, and diverse high-tech products. Centred in Basel, the chemical-pharmaceutical industry exports around the globe. Well developed & globally competitive sectors like banking, insurance, freight and shipping are responsible for routing substantial international trade through Switzerland.

Source: World Bank - World Development Indicators - last available data.

Sources of economic information

Statistical Office

Central Bank

Stock Exchange

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Political outline

Executive Power

President is both the chief of the state and head of the government. The post is purely ceremonial and by tradition rotates annually among the seven members of the Federal Council for one-year term. The Federal Council is a seven-member executive council (cabinet) that heads the executive branch, with its members being elected by country’s parliament for a four-year term. Under the constitution of Switzerland the make-up of the government is not determined by parliamentary majority but in accordance with a four-party power-sharing agreement (established in 1959) and known as the "magic formula".

Legislative Power

The legislature in Switzerland is bicameral. The parliament called Federal Assembly consists of: Council of States (the upper house) having 46 seats, with 2 members selected from each of the 20 cantons (states/provinces) and 1 from each of the six half-canton to serve four-year terms and the National Council (the lower house) having 200 seats, with its members elected by popular vote on the basis of proportional representation to serve four-year terms. The executive branch of government is directly or indirectly dependent on the support of the parliament, often expressed through a vote of confidence. The federal legislative power is vested in both the government and the parliament.

Main political parties

Switzerland has a multi-party system, where a single party has little chance of gaining power alone. Thus, parties work with each other to form coalition governments. The major parties in the country are:

 SVP (Swiss People's Party) – populist right-wing, with a strong base in German-speaking areas of Switzerland,

SP (Social Democratic Party) – centre-left,

CVP (Christian Democratic Party) - centre-right,

Green Party - left-wing environmentalist, its motto "think globally, act locally."

Current political leaders

President: Pascal COUCHEPIN (since 1 January 2008)

Vice President: Hans-Rudolf MERZ (since 1 January 2008)

Next election dates

Presidential:                  December 2008 (conducted on yearly basis)

Council of States:          Not available (each canton decides its own

                                      election dates)

National Council:           October 2011

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