Switzerland

Switzerland ranks 7th overall. Switzerland’s strength lies in Comparative Liveability (4th) rather than Economic Competitiveness (15th).

Switzerland’s scores on the Index for governance are world class, competing alongside the European leaders for government effectiveness and quality of regulation. Meanwhile, its generous company taxation regime has created a climate of openness, and caused many multinational firms to locate in the country. Altogether this encourages one of the world’s highest levels of capital investment, a key driver of growth. A reputation for banking confidentiality also acts as a major draw for foreign investors, although international concerns over money laundering could damage Switzerland’s ‘tax haven’ status.

Good and widespread mass educational achievement establishes a solid foundation for Switzerland’s high level of research capacity. This achievement is further signalled in the proportion of high tech products Switzerland exports. However, levels of competition are weak within some sectors, as the movements of relative price levels indicate.

GDP growth has been steady, though not startling, over recent years. Government measures to galvanise growth centre on the liberalisation of hitherto protected industries in which competition has been limited, such as energy, telecoms and postal services. Mediocre entrepreneurship scores are a further concern regarding long-term growth, particularly at this high level of income.

With per capita incomes of almost $33,000, Swiss workers are among the best paid in Europe. They are also among the most generous, with charitable giving figures among the highest in the world, suggesting a strong community spirit and civic life. Longer work hours than their European peers mean the Swiss enjoy good, but not great, amounts of leisure time.

Switzerland’s high performing economy, low unemployment, and strong education and health services make it one of the world’s most attractive countries to live in. Superb infrastructure, low crime rates and urban cleanliness facilitate a high standard of living in Switzerland’s large cities. Health-adjusted life expectancy is particularly good, at 73.2 years.

Strong scores on all the main Index criteria for political life, particularly in terms of government effectiveness, confirm the public sector’s reputation for efficiency. Switzerland also excels in terms of political rights and civil liberties, tying in first place with the Netherlands and Denmark. The country’s federal system engenders considerable regional autonomy as well as high levels of civic participation.

Compared to Europe’s leading nations, Switzerland falls short in terms of gender equality. That said, the number of women in parliament and women’s income is above the average for the region. The only major negatives highlighted in the Index are high divorce rates, low levels of religious faith and cold winters.