Switzerland

About Switzerland

Background:

The Swiss Confederation was founded in 1291 as a defensive alliance among three cantons. In succeeding years, other localities joined the original three. The Swiss Confederation secured its independence from the Holy Roman Empire in 1499. A constitution of 1848, subsequently modified in 1874, replaced the confederation with a centralized federal government. Switzerland's sovereignty and neutrality have long been honored by the major European powers, and the country was not involved in either of the two World Wars. The political and economic integration of Europe over the past half century, as well as Switzerland's role in many UN and international organizations, has strengthened Switzerland's ties with its neighbors. However, the country did not officially become a UN member until 2002. Switzerland remains active in many UN and international organizations but retains a strong commitment to neutrality.

PEOPLE

Population:
7,604,467 (July 2009 est.)
country comparison to the world: 94

Nationality:
noun: Swiss (singular and plural)
adjective: Swiss

Ethnic groups:
German 65%, French 18%, Italian 10%, Romansch 1%, other 6%

Religions:
Roman Catholic 41.8%, Protestant 35.3%, Muslim 4.3%, Orthodox 1.8%, other Christian 0.4%, other 1%, unspecified 4.3%, none 11.1% (2000 census)

Languages:
German (official) 63.7%, French (official) 20.4%, Italian (official) 6.5%, Serbo-Croatian 1.5%, Albanian 1.3%, Portuguese 1.2%, Spanish 1.1%, English 1%, Romansch (official) 0.5%, other 2.8% (2000 census)
note: German, French, Italian, and Romansch are all national and official languages

GOVERNMENT

Country Name:
conventional long form: Swiss Confederation
conventional short form: Switzerland
local long form: Schweizerische Eidgenossenschaft (German); Confederation Suisse (French); Confederazione Svizzera (Italian); Confederaziun Svizra (Romansh)
local short form: Schweiz (German); Suisse (French); Svizzera (Italian); Svizra (Romansh)

Government type:
formally a confederation but similar in structure to a federal republic

Capital:
name: Bern
geographic coordinates: 46 57 N, 7 26 E
time difference: UTC+1 (6 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October

Independence:
1 August 1291 (founding of the Swiss Confederation)

Flag description:
red square with a bold, equilateral white cross in the center that does not extend to the edges of the flag; various medieval legends purport to describe the origin of the flag; a white cross used as identification for troops of the Swiss Confederation is first attested at the Battle of Laupen (1339)

ECONOMY

Economy - overview:
Switzerland is a peaceful, 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. In recent years the Swiss have brought their economic practices largely into conformity with the EU's, in order to enhance their international competitiveness, but some trade protectionism remains, particularly for its small agricultural sector. The global financial crisis and resulting economic downturn put Switzerland in a recession in 2009 as global export demand stalled. The Swiss National Bank during this period effectively implemented a zero-interest rate policy in a bid to boost the economy and prevent appreciation of the franc. Switzerland's economy will probably experience modest GDP growth in 2010, when Bern is scheduled to implement a third fiscal stimulus program, but its prized banking sector has recently faced significant challenges. The country's largest banks suffered sizable losses in 2008-09, leading its largest bank to accept a government rescue deal in late 2008. Switzerland has also come under increasing pressure from individual neighboring countries, the EU, the US, and international institutions to reform its banking secrecy laws. Consequently, its government is negotiating measures that would improve transparency within its banking sector and increase cooperation with foreign tax authorities. In 2009 Swiss financial regulators ordered the country's largest bank to reveal at Washington's behest the names of US accountholders suspected of using the bank to commit tax fraud. Bern also has recently signed dual taxation agreements with more than ten countries to improve information exchange. These steps will have a lasting impact on Switzerland's long history of bank secrecy.

GDP (purchasing power parity):
$316.1 billion (2009 est.)
country comparison to the world: 38
$321.9 billion (2008 est.)
$316.2 billion (2007 est.)
note: data are in 2009 US dollars

GDP - per capita (PPP):
$41,600 (2009 est.)
country comparison to the world: 19
$42,500 (2008 est.)
$41,900 (2007 est.)
note: data are in 2009 US dollars

Budget:
revenues: $166.4 billion
expenditures: $172.6 billion (2009 est.)

Inflation rate (consumer prices):
-0.6% (2009 est.)
country comparison to the world: 15
2.4% (2008 est.)

Industries:
machinery, chemicals, watches, textiles, precision instruments, tourism, banking, and insurance

Exports:
$190.1 billion (2009 est.)
country comparison to the world: 19
$241.3 billion (2008 est.)

Imports:
$177.2 billion (2009 est.)
country comparison to the world: 19
$227.4 billion (2008 est.)

Exchange rates:
Swiss francs (CHF) per US dollar - 1.1081 (2009), 1.0774 (2008), 1.1973 (2007), 1.2539 (2006), 1.2452 (2005)