The impact of the Swiss financial sector on the country’s GDP is decreasing

The Swiss financial industry: a little less important than ten years ago, but still a big pillar of the economy. Keystone / Gian Ehrenzeller

The contribution of the Swiss financial sector to the country’s gross domestic product (GDP) has declined over the past ten years.

This content was published on April 20, 2022 – 19:28

The share of GDP represented by financial and insurance services was 9% last year, against 10% in 2011, according to the State Secretariat for International Finance (SIF).External link said in a report released Wednesday.

By way of comparison, the size of the financial sector in Luxembourg is 25.1% of GDP. In Singapore it is 13.8%, in the US 8.9% and in the UK 8.2%, SIF wrote.

The number of employees in the Swiss financial sector has increased from approximately 216,400 in 2011 to 211,605 in 2021, and now represents 5.2% of the total workforce.

Fewer banks

The total number of banks fell from 320 to 243, with private banks and foreign-controlled banks registering the largest decline.

This development reflects the impact of the structural change in wealth management for foreign assets, according to SIF.

The four main Swiss banking institutions accounted for 45% of the entire balance sheet in 2020.

Fintech boost

The latest figures also show that Switzerland is becoming a global hub for start-ups that rely on blockchain technology, mainly in the fintech sector.

The number of these companies increased from 842 in 2019 to 1,128 in 2021, and had just over 6,000 employees.

Finally, total capital investment by Swiss insurers rose to 579.5 billion francs ($611.4 billion) in 2020 from 490.6 billion francs in 2010, SIF reported.

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