Economy of Switzerland

The system of production, trade, finance, and consumption in Switzerland, marked by high incomes, a large services sector, and extensive international trade.

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Swiss franc: The official currency of Switzerland and Liechtenstein, issued by the Swiss National Bank. Its monetary policy and international demand shape prices, exports, and financial conditions.
Swiss pharmaceutical industry: The Swiss-based production and development of medicines and related products. Pharmaceuticals are a leading export sector, built around research-intensive firms.
European Union: A political and economic union of European member states with a single market and shared institutions. Switzerland trades closely with the EU but is not a member and relies on bilateral agreements.
Swiss cost of living: The prices households pay for housing, food, transport, healthcare, and other goods and services in Switzerland. High wages coexist with expensive essentials, affecting disposable income and affordability.
Swiss National Bank: Switzerland’s central bank, responsible for monetary policy and the stability of the financial system. It manages inflation and currency pressures in an economy exposed to global capital flows.
Swiss watch industry: The design and manufacture of watches in Switzerland, spanning luxury brands and specialized suppliers. Its premium exports show how specialization and reputation support high-value production.
European Free Trade Association: An intergovernmental organization promoting free trade and economic integration among Iceland, Liechtenstein, Norway, and Switzerland. Membership gives Switzerland a trade framework distinct from EU membership.
Swiss housing market: The system of housing construction, ownership, rental, and prices in Switzerland. Strong population and employment centers meet limited housing supply and high rents.
Swiss manufacturing: The production of goods in Switzerland, including pharmaceuticals, machinery, chemicals, and precision instruments. High-value manufacturing complements the large services sector and supports exports.
Swiss tourism: Travel and hospitality activities serving visitors in Switzerland, including alpine, urban, and business tourism. Tourism brings foreign spending to regions beyond the major industrial and financial centers.