Switzerland is among the richest countries within the world in terms of per capita income, that is, total GDP divided by the country’s population.
Switzerland’s GDP was $679 billion in 2017. As small because it is, on a per-person basis, it boasts of a GDP of $68,060, which is 8th highest within the world.
Its main trading partners are Germany, the U.S., France, Italy, Austria, Russia, and the U.K. Like Japan, Switzerland is additionally highly hooked in to its exports, which structure about $308.3 billion or 58.2% of its GDP.
Switzerland’s main industries are machinery, chemicals, textiles, precision instruments, and watches.
The Swiss commercial bank (SNB), which is presently chaired by Mr. Thomas Jordan, conducts the nation’s monetary policy by influencing the country’s monetary and credit conditions.
On top of its purpose to regulate the country’s funds and influence interest rates, the SNB features a more on-hand role keep the CHF’s valuation stable.
An excessively strong CHF could cause inflation to spike and will also undermine the country’s exports. With Switzerland’s strong reliance on their exports, the SNB favors a weaker CHF and doesn’t hesitate to intervene within the forex markets to weaken it.
One of the main monetary policies of the SNB is inflation targeting. The bank’s inflation target, which is monitored within the CPI, is below 2% a year.