The Switzerland economic growth has been one of the main factors behind the attraction of investments to the country. For many, especially with the current financial crisis, it is an attractive investment opportunity. The Swiss economy is considered to be stable and recession-proof. Unlike many other European countries, the Swiss government has been able to maintain and manage a steady growth rate. The following points would explain why this is possible.
One of the key factors behind this steady economic growth is the fact that Switzerland has effective policies towards foreign direct investment. The main aim of these policies is attracting investments from multinational companies. These firms typically outsource some of their work to countries like Switzerland. The central government provides subsidies to help foreign corporations keep operating in Switzerland. The Swiss government also ensures that they maintain low taxes for these companies. This has led to a significant rise in the Swiss economy.
A large number of multinational companies have reduced their head offices in Switzerland and transfer their operations to countries like India or Mexico. These companies get the advantage of having lower taxes as well as relaxed rules on hiring and outsourcing. The combination of all these factors has led to the Swiss economy growing at a steady rate. They also enjoy lower labor costs.
Another factor behind the Swiss economic growth rate is that Switzerland does not collect any kind of tax from its residents. The only thing that the government does is that it transfers the income earned by its citizens to the foreigners through various means. The government also offers tax holidays to foreigners who want to invest in property in Switzerland. All these measures have helped the Swiss economy to increase at a steady pace. In addition, the low inflation rate and the low interest rates have also helped them boost their gross domestic product.
As far as the standard of living is concerned, Switzerland has some of the best conditions in the world. While other countries suffer from economic crisis, the Swiss people have continued with their impressive economic growth rate. The per capita income in Switzerland is around forty thousand dollars, which is a high level when compared to most of the countries in the world. Moreover, there is no tax on the salary or on the purchases of citizens.
The per capita economic growth rate is six percent, which is slightly higher than the average per capita economic growth rate of five percent in the last twenty years. The currency exchange rate of Switzerland is also favourable. The foreign investors have a secure option of investing in Swiss bonds, equities and derivatives. There are no commissions or exchange rates on the investments made by the foreign investors. The Swiss banks offer the most attractive interest . . . . . . rate and most of the people prefer to keep their money in Swiss bank accounts.
One of the most important factors behind the Swiss economic growth rate is the effective management of internal resources. The budget and the surplus are efficiently managed, especially during the period of recession. The government also makes use of the available resources in order to enhance the external position of the economy. In fact, the external economic variables also help the Swiss economy to grow. There is low inflation, but the external economic variables have also played a significant role in boosting the Swiss economy.
The Swiss economy is also dependent on the natural surroundings. The great outdoors of the country helps the economy to flourish. Construction activities and tourist influx contribute to the rapid development of the economy. The efficient government policies and competent management processes are major factors behind the steady Swiss economic growth rate.