Strengths and weaknesses of the Swiss economy

Switzerland retains its 1st place position again this year as a result of its continuing strong performance across the board. The country’s most notable strengths are related to innovation and labor market efficiency as well as the sophistication of its business sector (ranking 2nd in all three). Switzerland’s top-notch scientific research institutions, along with other factors, make the country a top innovator. Productivity is further enhanced by a business sector that offers excellent onthe- job-training opportunities, both citizens and private companies that are proactive at adapting the latest technologies, and labor markets that balance employee protection with business efficiency.

Moreover, public institutions in Switzerland are among the most effective and transparent in the world (5th). Governance structures ensure a level playing field, enhancing business confidence: these include an independent judiciary, a strong rule of law, and a highly accountable public sector. Competitiveness is also buttressed by excellent infrastructure (6th) and highly developed financial markets (11th). Finally, Switzerland’s macroeconomic environment is among the most stable in the world (11th) at a time when many neighboring economies continue to struggle in this area.

With regard to start-ups there is still room for improvement. Two indicators are measuring how easy it is to start a business and here Switzerland is in the mid-field (47th and 78th). The situation is better in rgerad to the availability of venture capital (22^nd). But apart from the US and some Asian countries several European countries are ahead: Norway (4), Sweden (5), Finland (11), Luxembourg (13), UK (20) and Netherlands (21).

The Index can be downloaded from the website of the World Economic Forum.