The country that we have chosen for analysis is Switzerland. The economy of Switzerland is one of the world's most stable economies. Its policy of long-term monetary security and political stability has made Switzerland a safe haven for investors, creating an economy that is increasingly dependent on a steady tide of foreign investment. Switzerland has achieved one of the highest per capita incomes in the world with low unemployment rates and a low budget deficit. The service sector has also come to play a significant economic role. *Source: Wikipedia
Switzerland in brief * Switzerland’s Real GDP
*Source: World Bank
Swiss | Year 2004 | Year 2005 | Year2006 | Year 2007 | Year 2008 | Year 2009 | Year 2010 | Real GDP in US$ (based on 1990 price) | 362,990,618,832 | 372,475,755,390 | 391,233,703,828 | 434,116,631,637 | 503,215,464,683 | 492,261,743,767 | 527,919,933,356 | Growth Rate | 2.5% | 2.6% | 3.6% | 3.6% | 2.1% | -1.9% | 2.7% |
From the data available, Switzerland’s strong economic growth had done well for the past few years. From 2004 to 2008, real GDP had increased continuously, especially in year 2006 and year 2007, making a 3.6% growth.
However, its economic growth slowed down and went into negative growth when the global crisis hit in 2009. The economy entered its first recession in six years as a global slowdown strangled exports and companies slashed spending. The economic growth rate was -1.9%, which was dragged down mostly by a huge fall in Foreign Trade and Capital Investments.
Swiss Economy: Declining Foreign Trade and Capital Investments - credit-suisse.com (09.01.2009)The Swiss economy still appeared to be robust until the end of October 2008. But in November, order book levels in industry literally collapsed overnight. Since then, the Swiss economy has no longer been able to escape the significant downward trend throughout the world.