Swiss Economy and Outlook 2025 (revised in January 2025
Latest Swiss economic data provide a carefully optimistic outlook for 2025 with a modest growth of the GDP of 1.4 - 1.5 percent (OECD). It is based on a rather solid resilience against the worldwide economic fluctuations and inflationary pressure. A focus is seen in the recovery of the financioal sector from the Credit Suisse debacle and higher efficiency in the food industry. Also the Swiss pharmaceutical sector with names such as Hoffmann LaRoche, Novartis, Sandoz and others remains among the world leaders. Inflation is fluctuating at an average of some 0.75 percent at this time. The slow pace of growth reflects the worldwide low investments activity, particularly in neighboring Germany, Switzerland's traditional main tradeing partner. The uncertainties resulting of the wars in the Middle East and the Ukraine, in particular, impact on the export oriented Swiss machinery and industrial equipment industries. US-Swiss relations (the US being the top Swiss exports market) are described as having been the best for decades during the first Trump administration. The devlopment of relations during the forthcoming second term will be significant for the export oriented industry. Switzerland is among the leading direct investors in the US providing some half a million local jobs. A challenge remains the stregth of the Swiss Franc (CHF) due to its role as a safe haven currency. The interventions of the Swiss National Bank (SNB) to stabilize fluctuations have been seen critically by the US. A growing challenge remains the availability of sufficient stable energy sources, the cost of electric power and a sharp lack of qualified manpower. The political stability is being tested by exploding healthcare cost, insurance premiums as well as immigration which tops some 25 percent of the local population, many from countries with totally different religious and cultural backgrounds. Over 400'000 cross the borders daily into Switzerland for work from France, Italy and Germany in particular. They are attracted by Swiss salaries which, in same cases are nealy double of what they would make in their home countries.
IMF per capita GDP estimates in USD for 2024 present the following picture: Germany 55'521; France 48'012; Austria 58'669; Italy 40'287; UK 52'423; Sweden 57.213; Norway 90'434; United States 86'601; Switzerland 106'098
Purchasing power per capita (PPP) for 2024 in Euros show the following ranking: Liechtenstein 70'180; Switzerland 52'566; Luxembourg 41'785; Austria 29'266; UK 28'086; Norway 28'072; Germany 27'848; Netherlands 27'558 selection of the top ten)
A main challenge remain the EU-Swiss relations although a proposed agreement has been submitted recently after years of negotiations. The main goal of the EU is to further integrate Switzerland politically to complement the existing excellent economic relations. The fact remains that the EU top down system is hardly compatible with the Swiss bottom-up direct democracy where people (tax payers) have the final say in most issues, in particular if they impact on peoples rights. It remains to be seen whether or not the pending proposal will pass the referendum.. (Source KOF & SECO)
R & D
Investments in R&D at the forefront of technology continue at 3.4 percent of the GDP of which two thirds are private sector financed. On a per capita basis it ranks Switzerland within the worldwide leading nations. The country is also at the top of the list of new patents published by the Intl. Patent Office just recently ETH in Zurich and EPFL in Lausanne rank among the world's leading universities
Financial standing
Switzerland enjoys a financial healthy position compared to neighboring countries. The national dept, due to Corona and other rising cost e.g. for defense and social programmes rose to 38 percent (in relation to the GDP). Faced by thight budgets as of 2025 it still is a comparably "comfortabl" position vs. most other nations.
The Swiss Franc keeps its role as an international “Safe-Haven” currency. However, the resulting pressure on Swiss export prices (e.g. due to the weakness of the EURO vs the Swiss Franc) is now softened by the recently less favorable exchange rates resulting from lower interest rates introduced by the Swiss National Bank to make the Swiss Franc somewhat less attractive. .
Market Data
The following 2024 data (estimates)are intended to allow a better understanding and ranking of the Swiss market within the European economic context. Switzerland, although economically closely lconnected, is not a member of the EU.
European purchasing power per capital/country 2024*
Country Inhabitants Total Euros PPP EU PPP index
Liechtenstein 39’677 70’180 373.9
Switzerland 8’960’817 52’566 280.1
Austria 9’170’647 29’266 155.9
UK 66’171155 28’086 149.6
Norway 5’560’203 28’072 149.6
Germany 84’669’326 27’848 148.4
Netherlands 17’942’942 27’558 146.8
Europe (total) 686’854’148 18’768 100.0
*Source EUROSTAT without UK.
2025 Swiss economic and political position in Europe and outlook
Inspite of its small geographic size, Switzerland is Europe's seventh largest economy, the EU's third ranking trading partner and the top foreign direct investor. Located in the very center of the European continent, with a multilingual, multicultural society, Switzerland is not a EU member inspite of its close historical, cultural and linguistic relations. EU membership is presently rejected by some 80 percent of the population. Over 25 percent of the resident population are foreign nationals, mostly from the EU. The country is an important workplace for over 1.5 million foreigners plus over 400'0000 crossing the borders daily for work. The Worldbank estimates that foreign residents transfer yearly the equivalent of over 4 billion USD to their home countries. The EU, resp. its member states are the main trading partners. However exports to countries outside of Europe nearly doubled within recent years topping now some 60 percent of total. The US became the top export market of Swiss industry as of 2018.
Wheras Swiss bilateral relations to most European nations are excellent, relations to the EU per se remain somewhat less harmonious. Negotiations initiated at the request of the EU for a closer political integration resulted in a proposal.in December 2024 after years of negotiations. However the Swiss top-down political system known as "direct democracy" (allowing citizens to decide about taxes, regulations, agreements etc.) appears to be hardly compatible with the EU's goals of further centralization and close institutional integration. The proposal will now go to parliement for further discussions as details are not known yet. Wheather or not it will pass the referendum is an open question as it seems doubtfull that a majority of voters will accept a substantial cut of their cititzens rights
(revised in December 2025)
Profile of Swiss Travellers
The small size of Switzerland and its diversity forced its people as of its early existence to look beyond the country's borders, particularly since the beginning of the industrialization in the 19th century. Living in a multilingual resp. mulicultural society most Swiss speak one or several languages of their neighbors (French, Italian, German). Cross border business and shopping, travel and close personal relations have a long tradition. A recent study revealed that old established international networks since the 19th century, particularely in Asia, can still be traced back and provide a basis for a functionning business network.. Swiss are ardent travellers as a result and used to follow closely what is happening worldwide. A total of 83.7 percent of the resident population has taken a least one international trip with over 3 overnights in 2023. Out of these each adult booked 1.6 flights (3.2 incl. return) per year, or twice as many as in their neighboring countries. The German speakSwiss appear to be somewhat more travel-savy than their French or Italian speaking countrymen.
Living in a multiligual (4 official languages) resp. multicultural environment facilitates people to understand, respect and cope with foreign habits and cultures. Language barriers, as a result, tend to be rather low and English e.g. is widely spoken. Swiss tend to be well informed about international politics and relevant issues, particularly in neighboring countries and the US. Incomes and an attractive purchasing power allows them to ecape their "narrow borders" and discover the world. They spent some $ 236.00* per day and person on foreign travel in 2022. Swiss appreciate service, cleanness, punctuality and quality and are willing to pay for it. They like to travel individually or in small groups, enjoy meeting the local population and avoid crowds.
Swiss travel to the US is driven, in particular now in in recent years, by the rate of exchange. The difference in value (USD/CHF) by some 12-14 percent to the preCorona years (weak US$ vs CHF) compensates the inflation driven higher prices in the US. Political events such as the change of the administrations and similar aspects tend to be overrated, particularly be the media, with respect to their impact on travel..
Booking behavior: 68 percent of all travel in 2023 were booked directly at the "producers" (TO's etc.) and some 35 percent were booked online on relevant websites. The percentage of totally self-organized trips fluctuates at some 10 percent. Safety and security considerations (e.g. repatriation) seem to be a major reason for using professional services. Long haul and complex travel is also often entirely booked for reasons of comfort. Security became a priority during the recent Corona pandemics pushing bookings at travel agencies. German speaking Swiss appear to be more safety minded than their French or Italian speaking counterparts. They tend to accept paying more for quality and service which reflects their purchasing power.. Many young people book at travel agencies to overcome limitations in the use of credit cards
*average exchange rate April 2024: 1.00 USD = 0.91 Swiss Francs.
Travel Industry Structure/Data
The structures of Switzerland's travel trade is subject to considerable changes due to Corona and the resulting challenges. It is now struggeling to hire new qualified staff which was lost during the pandemics. Before the pandemics the Switzerland's travel trade consisted of some 1100 so-called Class A and about 450 Class B travel agencies.
Largest companies include:
- Hotelplan Group - Kuoni Travel (DER)
- TUI Suisse - Knecht Reisen AG
- FTI - Globetrotter
Average gross profit margine before Corona was 15.6% (travel agencies). Travel agencies charge their clients a handling resp. counselling fee of some $ 60.00 which may be waived depending the total value of a package.
(Revised in December 2025
The steady growth of Swiss arrivals of annually 7 percent from 2017 to a total of 474'550 in 2019 was brutally interrupted by Corona. Below graphic shows the overall stable market since the year 2000 incl. fluctuations with the alltime record of over 536'000 arrivals in 2015 (probably triggered by the low rate of exchange USD/CHF of 1/0.72 in 2013/14) Takeing into account a resident population of nearly nine million it may be assumed that many have taken several trips to the US per year.
The "Swiss appetite" for travel to the US has been given a renewed boost by the recent strength of the Swiss Franc vs the USD which keeps floating at a rate of now some 0.89 CHF. The market, as a result is approaching the level of an estimated 400'000 arrivals which used to be the average annual "Swiss production" in the past decades.
Looking at the Swiss market it is important to also consider the high purchasing power which shows in the per capita expenditures per day which rank among the world's highest. Profitability vs. quantity.
Profile of average Swiss traveller to the U.S.
What are Swiss travellers looking for in the U.S.?What are Swiss travellers looking for in the U.S.?
The majority of Swiss enjoy meeting local Americans. They like the easy contact and accessibility. Authenticity is important. Big cities with cultural and sports events, shopping, sightseeing and restaurants are popular. The friendly hospitality of American small town communities and their lifestyle are most appreciated. Cities with a fascinating multiethnical, cultural and historical background like San Francisco, New Orleans, Miami, Boston, Chicago and New York are "musts" as well as nature and wildlife (national parks and forests); native Americans; Western lifestyle (horses, BBQ, dude farms); outdoor activities (jeep tours, river rafting, helicopter rides, biking). In past years the beautifull, little croweded beaches made the US a tempting alternative to traditional beach vacations in Europe or in politically less stable countries. Typical American sports (rodeos, baseball, American football) less known to the Swiss are popular. They enjoy the excitment at such events. American hospitality is an asset and an occasional touch of American nostalgia is appreciated, in particular by people of 45 years of age and more. The Swiss are open to new, less known regions, states and parks - somewhat off the tourist mainstream. This also applies to whole regions, cities, hotels etc. off-the-beaten tracks
Where do they go?
You may find Swiss all over, increasingly off the beaten tracks. They like to travel on their own. Making on-site complementary arrangements is popular - where they like it.. (event bookings, extensions, excursions). . The high percentage of repeat visitors is reflected by the interest in less known or new destinations. Popular states and regions are: New York (NYC) California, South West (AZ, UT, NM, NV), Florida, Alaska, New England States South (FL, GA, SC, LA, KY, TN), Colorado, Wyoming, Montana, Hawaii, Oregon, Wash. State, Texas, Mid-Western States/Great Lake States.
Within Switzerland Promotional Opportunities 2025
USA Island Hopping (former Visit USA Seminar) 2025 will take place on January 29. This well established workshop and exhibit had to be cancelled due to Covid19 in 2021 and 2022. The new event format allows partners (destinations & service providers) to systematically present their products to small focussed groups of visitors (rotating from island to island). It is tailored to the requirements of the Swiss market where product knowledge, competence in counselling and quality are the key for successfull selling. Please note that the non-profit promotional resp. educational platforms of the Visit USA Committee have an over 25 years history of in effective promotion and futhering of Swiss travel to the US. The amazing success of Swiss travel to the US. does not demand any further comments.
USA Road Show - (date pending). The Road Show is a popular promotional complement of USA Island Hopping to provide additional exposure in a smaller, more personal environment. It covers an average of 5 cities in several days in German and French speaking Switzerland.
Please note that presentations may also be given in English. Authenticity is much appreciated in the Swiss market!
The VUSA Committee sees its role as being complementary to the programs of THE BRAND USA providing cost recovery platforms (no tax money) tailored to the local mentality and specific detailed requirements - the Swiss market consisting of 3 languages and relevant cultures.
