The WEF Global Competitiveness Index provides an overview of the competitiveness performance of 140 economies and is thus considered as the most comprehensive assessment of its kind globally. The report measures the set of institutions, policies, and factors that set the sustainable current and medium-term levels of economic prosperity. Within that context, Switzerland remains the number 1 candidate for the 7th year in a row, ahead of Singapore and the United States.
How can a country stay “undefeated” for so long? For Switzerland, the secret recipe consists of a mix of various ingredients including, among other ones, the world’s highest level of innovation, a very sophisticated business environment, a strong technological readiness, an efficient labor market, a first-class higher education and training system as well as outstanding infrastructure. In addition, public institutions are effective and transparent, and its macroeconomic environment is more stable than most.
However, according to the WEF; “the cost of doing business in Switzerland is high – and its strong currency, negative real interest rates and uncertainty about future immigration policy are all cautions against complacency”. The alpine country is currently addressing these aspects in order to keep its leadership in competitiveness in the coming years.
For more information about Switzerland as a business location, please refer to our Handbook for Investors.