The importance of banks is greatly exaggerated

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The state-sponsored takeover of Credit Suisse by UBS is the subject of worldwide analysis and commentary. The Wall Street Journal wrote yesterday that the crisis is threatening the Swiss national identity based on protecting world wealth. In light of the CS debacle, “Tages-Anzeiger” also found: “Swiss identity faltering.”

What’s overlooked in these reviews: Switzerland isn’t just about (big) banks. While the financial industry has undoubtedly contributed to the nation’s prosperity, its importance to the local economy is often greatly exaggerated.

According to the State Secretariat of Economic Affairs, financial services contributed CHF 36.4 billion to the gross domestic product (GDP) in 2021 – that’s just 4.9 percent of Swiss GDP as a whole. The number of employees also fell sharply: in 2011, according to the Federal Statistical Office, there were 124,558 full-time positions in the “financial services” sector. There were still 105,992 in 2021—a 15 percent drop.

Economic growth and employment have long been created in other sectors. The main driver is the pharmaceutical industry, which is responsible for more than half of Swiss exports today. However, industrial companies, which are among the world leaders in many fields through innovation and specialization, are much more important for employment in this country than Paradeplatz. There are 325,000 employees in the mechanical, electrical and metals industries alone – that’s three times the entire financial sector.

Source :Blick