Report by the WTO Secretariat

Switzerland and Liechtenstein are among the top high-per capita income countries in the world and are very well integrated into international trade. They both benefit from strong democratic institutions, educated populations, and a specialization in value-added production. Their fiscal situation is sound and their unemployment traditionally low. Services account for about three quarters of the Swiss economy. One particularity of the Liechtenstein economy is the importance of manufacturing, representing 40% of GDP in 2019. During the review period, and prior to the COVID-19 pandemic, real GDP growth in Switzerland was positive, ranging from 1.2% in 2019 to 2.9% in 2018. GDP growth in Liechtenstein tends to be more volatile because of the small size of the economy. After three years of real GDP growth, Liechtenstein’s GDP contracted by 2.3% in 2019. Because of the COVID-19 pandemic, real GDP growth fell by 2.4% in 2020 in Switzerland, and further in Liechtenstein. Thanks to strong financial buffers and a prompt response by the Governments, the pandemic is not expected to have negative effects on long-term economic prospects.