Critical Issues
Background:
Switzerland entered its recession in Q3 2008 in a stronger position than many other countries in Europe. In the past couple of years, the Swiss economy reported high GDP growth rates, declining unemployment and shrinking government debt. In 2009, the World Economic Forum’s Global Competitiveness Report named Switzerland the most competitive country in the world ahead of the U.S. Despite its strong economic position, the Swiss economy suffered considerably from the slump in global demand due to the country’s excessive reliance on exports. Switzerland is a small, open economy in which more than half of corporate earnings come from the export industry. In addition, the turbulences in the financial markets put severe strain on the Swiss financial sector which contributed 13% to GDP in 2007.
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