Switzerland has a highly successful market-based economy. Its standard of living, its industrial productivity, the quality of its education system, and its health-care system are amongst the highest in Europe.
After several years of growth rate above the European average, the Swiss economy contracted sharply in 2009 (-1.9%) due to the international financial crisis. With a growth estimated at 2.9% of the GDP in 2010, the recovery was quick and vigorous, driven by the global recovery, as well as by the quick improvement of domestic demand. The 2011 outlook is marred by the appreciation of the Swiss frank towards the euro (currency of its main trading partners), which will hurt exports, and by the decrease in U.S. demand.

The economic recovery being uncertain, the government continues to pursue its stabilization measures, which concern, among others, supporting employment and promoting exports. In order to comply with the rule of limiting debt, the authorities should also adopt fiscal consolidation measures on the federal level. Special attention will also be paid to inflationary pressures.

In spite of the increase in unemployment due to the recession, Switzerland’s unemployment rate remains very low compared to the EU average. Estimated at 3.6% in 2010, it should recede slowly in 2011-2012.

Agriculture contributes around 1% to the GDP and employs less than 4% of the active population (only 10% of the land is suitable for cultivation). The primary agricultural products are livestock and dairy products. Swiss authorities grant numerous direct subsidies to farmers in order to meet strict ecological criteria such as soil protection. Organic farming is booming. There are hardly any mineral resources on Swiss soil.

Electricity is generated chiefly from hydraulic and nuclear power. Switzerland is renowned worldwide for the high quality of its manufactured products, which include watches, motors, generators, turbines, and diverse high-technology products. Located in Basel, the chemical and pharmaceutical industry exports all over the world.

The service sector contributes to over 70% of the GDP and employs slightly under three quarters of the active workforce. Well developed and globally competitive sectors such as banking, insurance, freight and transport, contribute substantially to the development of international trade across Switzerland. Tourism, which adds significantly to the economy, helps to balance Switzerland's trade deficit.

Swiss economy is very much open to foreign trade, which represents more than 90% of the country’s GDP. The European Union (EU) is Switzerland's major trade partner, accounting for two-thirds of its total foreign trade. On 1st of June 2002, agreements were signed between the EU and Switzerland regarding seven main trade sectors. Exports account for approximately half of the country’s GDP. Switzerland's two main clients of are the United States and the European Union. Switzerland shows a substantial trade surplus and this trend should continue despite its possible erosion in 2011.

Switzerland is an attractive destination for foreign investors because of its economic and political stability, its transparent and fair legal system, its reliable and extensive infrastructures, and its efficient capital markets. Moreover, many tax incentives are offered by cantons (states), in order to attract companies to establish operations and invest in their jurisdictions. Some cantons go as far as to waive taxes for new firms for a period that can go up to ten years. The major laws governing foreign investment in Switzerland are the Swiss Code of Obligations, the Lex Friedrich/Koller, the Securities Law, and the Cartel Law. There is no screening of foreign investment, neither are there any sector or geographical preferences. The country experienced a marked increase in terms of FDI in-flow in recent years. However, because of the impact of the financial crisis, foreign investment decreased significantly in 2008 and since then has been recovering slowly.