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Switzerland vs. Austria

Economy

SwitzerlandAustria
Economy - overview

Switzerland, a country that espouses neutrality, is a prosperous and modern market economy with low unemployment, a highly skilled labor force, and a per capita GDP among the highest in the world. Switzerland's economy benefits from a highly developed service sector, led by financial services, and a manufacturing industry that specializes in high-technology, knowledge-based production. Its economic and political stability, transparent legal system, exceptional infrastructure, efficient capital markets, and low corporate tax rates also make Switzerland one of the world's most competitive economies.

The Swiss have brought their economic practices largely into conformity with the EU's to gain access to the Union's Single Market and enhance the country's international competitiveness. Some trade protectionism remains, however, particularly for its small agricultural sector. The fate of the Swiss economy is tightly linked to that of its neighbors in the euro zone, which purchases half of Swiss exports. The global financial crisis of 2008 and resulting economic downturn in 2009 stalled demand for Swiss exports and put Switzerland into a recession. During this period, the Swiss National Bank (SNB) implemented a zero-interest rate policy to boost the economy, as well as to prevent appreciation of the franc, and Switzerland's economy began to recover in 2010.

The sovereign debt crises unfolding in neighboring euro-zone countries, however, coupled with economic instability in Russia and other Eastern European economies drove up demand for the Swiss franc by investors seeking a safehaven currency. In January 2015, the SNB abandoned the Swiss franc's peg to the euro, roiling global currency markets and making active SNB intervention a necessary hallmark of present-day Swiss monetary policy. The independent SNB has upheld its zero interest rate policy and conducted major market interventions to prevent further appreciation of the Swiss franc, but parliamentarians have urged it to do more to weaken the currency. The franc's strength has made Swiss exports less competitive and weakened the country's growth outlook; GDP growth fell below 2% per year from 2011 through 2017.

In recent years, Switzerland has responded to increasing pressure from neighboring countries and trading partners to reform its banking secrecy laws, by agreeing to conform to OECD regulations on administrative assistance in tax matters, including tax evasion. The Swiss Government has also renegotiated its double taxation agreements with numerous countries, including the US, to incorporate OECD standards.

Austria is a well-developed market economy with skilled labor force and high standard of living. It is closely tied to other EU economies, especially Germany's, but also the US', its third-largest trade partner. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector.

Austrian economic growth strengthen in 2017, with a 2.9% increase in GDP. Austrian exports, accounting for around 60% of the GDP, were up 8.2% in 2017. Austria's unemployment rate fell by 0.3% to 5.5%, which is low by European standards, but still at its second highest rate since the end of World War II, driven by an increased number of refugees and EU migrants entering the labor market.

Austria's fiscal position compares favorably with other euro-zone countries. The budget deficit stood at a low 0.7% of GDP in 2017 and public debt declined again to 78.4% of GDP in 2017, after reaching a post-war high 84.6% in 2015. The Austrian government has announced it plans to balance the fiscal budget in 2019. Several external risks, such as Austrian banks' exposure to Central and Eastern Europe, the refugee crisis, and continued unrest in Russia/Ukraine, eased in 2017, but are still a factor for the Austrian economy. Exposure to the Russian banking sector and a deep energy relationship with Russia present additional risks.

Austria elected a new pro-business government in October 2017 that campaigned on promises to reduce bureaucracy, improve public sector efficiency, reduce labor market protections, and provide positive investment incentives.

GDP (purchasing power parity)$588.472 billion (2019 est.)

$583.056 billion (2018 est.)

$567.448 billion (2017 est.)

note: data are in 2010 dollars
$498.78 billion (2019 est.)

$491.803 billion (2018 est.)

$479.433 billion (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate1.11% (2019 est.)

3.04% (2018 est.)

1.65% (2017 est.)
1.42% (2019 est.)

2.58% (2018 est.)

2.4% (2017 est.)
GDP - per capita (PPP)$68,628 (2019 est.)

$68,479 (2018 est.)

$67,139 (2017 est.)

note: data are in 2010 dollars
$56,188 (2019 est.)

$55,631 (2018 est.)

$54,496 (2017 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 0.7% (2017 est.)

industry: 25.6% (2017 est.)

services: 73.7% (2017 est.)
agriculture: 1.3% (2017 est.)

industry: 28.4% (2017 est.)

services: 70.3% (2017 est.)
Population below poverty line16% (2018 est.)13.3% (2018 est.)
Household income or consumption by percentage sharelowest 10%: 7.5%

highest 10%: 19% (2007)
lowest 10%: 2.8%

highest 10%: 23.5% (2012 est.)
Inflation rate (consumer prices)0.3% (2019 est.)

0.9% (2018 est.)

0.5% (2017 est.)
1.5% (2019 est.)

2% (2018 est.)

2% (2017 est.)
Labor force5.067 million (2020 est.)3.739 million (2020 est.)
Labor force - by occupationagriculture: 3.3%

industry: 19.8%

services: 76.9% (2015)
agriculture: 0.7%

industry: 25.2%

services: 74.1% (2017 est.)
Unemployment rate2.31% (2019 est.)

2.55% (2018 est.)
7.35% (2019 est.)

7.7% (2018 est.)
Distribution of family income - Gini index32.7 (2017 est.)

33.1 (1992)
29.7 (2017 est.)

30.5 (2014)
Budgetrevenues: 242.1 billion (2017 est.)

expenditures: 234.4 billion (2017 est.)

note: includes federal, cantonal, and municipal budgets
revenues: 201.7 billion (2017 est.)

expenditures: 204.6 billion (2017 est.)
Industriesmachinery, chemicals, watches, textiles, precision instruments, tourism, banking, insurance, pharmaceuticalsconstruction, machinery, vehicles and parts, food, metals, chemicals, lumber and paper, electronics, tourism
Industrial production growth rate3.4% (2017 est.)6.5% (2017 est.)
Agriculture - productsmilk, sugar beet, wheat, potatoes, pork, barley, apples, maize, beef, grapesmilk, maize, sugar beet, wheat, barley, potatoes, pork, triticale, grapes, apples
Exports$443.997 billion (2019 est.)

$444.605 billion (2018 est.)

$430.129 billion (2017 est.)

note: trade data exclude trade with Switzerland
$270.888 billion (2019 est.)

$263.145 billion (2018 est.)

$249.312 billion (2017 est.)
Exports - commoditiesgold, packaged medicines, medical cultures/vaccines, watches, jewelry (2019)cars, packaged medical supplies, vehicle parts, medical vaccines/cultures, flavored water (2019)
Exports - partnersGermany 16%, United States 14%, United Kingdom 8%, China 7%, France 6%, India 6%, Italy 5% (2019)Germany 28%, United States 7%, Italy 6%, Switzerland 5% (2019)
Imports$344.477 billion (2019 est.)

$344.557 billion (2018 est.)

$343.367 billion (2017 est.)
$253.276 billion (2019 est.)

$247.225 billion (2018 est.)

$235.385 billion (2017 est.)
Imports - commoditiesgold, packaged medicines, jewelry, cars, medical cultures/vaccines (2019)cars, vehicle parts, broadcasting equipment, refined petroleum, packaged medical supplies (2019)
Imports - partnersGermany 21%, Italy 8%, United States 6%, France 6%, United Kingdom 5%, United Arab Emirates 5% (2019)Germany 39%, Italy 7%, Czechia 5% (2019)
Debt - external$1,909,446,000,000 (2019 est.)

$1,930,819,000,000 (2018 est.)
$688.434 billion (2019 est.)

$686.196 billion (2018 est.)
Exchange ratesSwiss francs (CHF) per US dollar -

0.88995 (2020 est.)

0.98835 (2019 est.)

0.99195 (2018 est.)

0.9627 (2014 est.)

0.9152 (2013 est.)
euros (EUR) per US dollar -

0.82771 (2020 est.)

0.90338 (2019 est.)

0.87789 (2018 est.)

0.885 (2014 est.)

0.7634 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt41.8% of GDP (2017 est.)

41.8% of GDP (2016 est.)

note: general government gross debt; gross debt consists of all liabilities that require payment or payments of interest and/or principal by the debtor to the creditor at a date or dates in the future; includes debt liabilities in the form of Special Drawing Rights (SDRs), currency and deposits, debt securities, loans, insurance, pensions and standardized guarantee schemes, and other accounts payable; all liabilities in the GFSM (Government Financial Systems Manual) 2001 system are debt, except for equity and investment fund shares and financial derivatives and employee stock options
78.6% of GDP (2017 est.)

83.6% of GDP (2016 est.)

note: this is general government gross debt, defined in the Maastricht Treaty as consolidated general government gross debt at nominal value, outstanding at the end of the year; it covers the following categories of government liabilities (as defined in ESA95): currency and deposits (AF.2), securities other than shares excluding financial derivatives (AF.3, excluding AF.34), and loans (AF.4); the general government sector comprises the sub-sectors of central government, state government, local government and social security funds; as a percentage of GDP, the GDP used as a denominator is the gross domestic product in current year prices
Reserves of foreign exchange and gold$811.2 billion (31 December 2017 est.)

$679.3 billion (31 December 2016 est.)
$21.57 billion (31 December 2017 est.)

$23.36 billion (31 December 2016 est.)
Current Account Balance$79.937 billion (2019 est.)

$63.273 billion (2018 est.)
$12.667 billion (2019 est.)

$5.989 billion (2018 est.)
GDP (official exchange rate)$731.502 billion (2019 est.)$445.025 billion (2019 est.)
Credit ratingsFitch rating: AAA (2000)

Moody's rating: Aaa (1982)

Standard & Poors rating: AAA (1988)
Fitch rating: AA+ (2015)

Moody's rating: Aa1 (2016)

Standard & Poors rating: AA+ (2012)
Ease of Doing Business Index scoresOverall score: 76.6 (2020)

Starting a Business score: 88.4 (2020)

Trading score: 96.1 (2020)

Enforcement score: 64.1 (2020)
Overall score: 78.7 (2020)

Starting a Business score: 83.2 (2020)

Trading score: 100 (2020)

Enforcement score: 75.5 (2020)
Taxes and other revenues35.7% (of GDP) (2017 est.)48.3% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)1.1% (of GDP) (2017 est.)-0.7% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 8%

male: 8.8%

female: 7.2% (2019 est.)
total: 8.5%

male: 9.2%

female: 7.8% (2019 est.)
GDP - composition, by end usehousehold consumption: 53.7% (2017 est.)

government consumption: 12% (2017 est.)

investment in fixed capital: 24.5% (2017 est.)

investment in inventories: -1.4% (2017 est.)

exports of goods and services: 65.1% (2017 est.)

imports of goods and services: -54% (2017 est.)
household consumption: 52.1% (2017 est.)

government consumption: 19.5% (2017 est.)

investment in fixed capital: 23.5% (2017 est.)

investment in inventories: 1.6% (2017 est.)

exports of goods and services: 54.2% (2017 est.)

imports of goods and services: -50.7% (2017 est.)
Gross national saving35.3% of GDP (2019 est.)

33.8% of GDP (2018 est.)

30.6% of GDP (2017 est.)
28.5% of GDP (2019 est.)

26.9% of GDP (2018 est.)

26.3% of GDP (2017 est.)

Source: CIA Factbook