Switzerland’s Economic Strengths Support its Impressive Healthcare Industry

Friday 8 March 2013, Amsterdam

Switzerland’s political stability and strong financial standing may have saved it from the worst of the Eurozone crisis, allowing the country’s healthcare industry to shine, according to a new report by healthcare experts GlobalData.

Strong trade links throughout Europe, historically low unemployment rates, and a sound financial sector and banking industry places Switzerland among the world’s most developed countries. The Swiss economy was impacted upon by the recent global recession, but a change to its monetary policy and the introduction of a zero interest rate policy attracted Foreign Direct Investment (FDI) into the country and stabilized the national economy.

A significant part of Switzerland’s economic funds is used by the government to finance the rising demand for healthcare, as the swelling elderly population drives up the prevalence of chronic and age-associated diseases such as cancer. This disease burden, and the country’s universal healthcare, will drive the pharmaceutical industry in Switzerland.

High expenditure on healthcare and pharmaceutical R&D and the presence of major pharmaceutical companies has also propelled the growth of the Swiss healthcare industry. Global major players in the pharmaceutical industry, such as Novartis and Roche, are headquartered in Switzerland, and have their manufacturing and R&D units in the country, providing employment for the Swiss population. The World Intellectual Property Organization (WIPO) is also situated in Switzerland, supporting the pharmaceutical industry through enforcement of patent protection.

Switzerland has one of the top economies in the world, with a GDP per capita of $83,971 in 2011, topped only by Luxembourg ($114,508) and Norway ($98,102). The pharmaceutical market of Switzerland was valued at $6.6 billion in 2011, and is estimated to reach $10.9 billion in 2020. The medical device market of Switzerland was $2.34 billion in 2010, and is expected to grow to $3.67 billion in 2020.