Switzerland Is The World 's Most Competitive Economy

1809 WordsMar 27, 20168 Pages
Switzerland is the world’s most competitive economy according to the World Economic Forum’s (WEF) Global Competitiveness Index 2014-2015. Some reasons why Switzerland’s economy is so notable is because they have a very skilled labor force of 4.9 million people, a stable political environment, liquid financial markets, low taxes, a strong domestic purchasing power, a well-built infrastructure, a stable macroeconomic environment and a strong service sector. Switzerland’s gross domestic product (GDP) declined between January and September 2015 because of the appreciation of the Swiss franc from mid-January, the weaker expansion of global trade, and the domestic economy slowing down. Economic growth in Switzerland is expected to increase from 0.8% in 2015 to 1.5% in 2016 and 1.9% in 2017. Since the domestic economy has slowed down, the unemployment rate rose to 3.3% in 2015, making the average in 2016 to 3.6% and is expected to start falling again to 3.4% in 2017. Financial services contribute to about 10% of Switzerland’s GDP and financial institutions are currently adjusting to a new international regulatory environment. Switzerland’s inflation is low and the Swiss National Bank (SNB) believes inflation will rise to -0.5% by the end of 2016. The 2017 inflation prediction has predicted to go from 0.4% to 0.3% and Swiss National Bank anticipates inflation to overcome the 1.0% threshold by the middle of 2018. Switzerland is home to a many multinationals, and exports are a
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