Switzerland has decided to keep its own currency and not switch to Euro, which is starting to become a problem now as the National Bank decided to stop regulating the exchange rate. On one side, the Swiss enterprises have problems exporting products because they got more expensive due to the EUR-CHF exchange rate. On the other side, Swiss stores are suffering from this as well because the low exchange rate made it even more tempting for Swiss people to go over the border to Germany, France, Italy or Austria for shopping.
The number of farms where farming is the main source of income continues to fall.
The growing gap between farming and industrial incomes is discouraging young people from going into agriculture.
In recent years changes in society have created yet another problem for farmers: they are finding it more and more difficult to find wives. Women today have more chance to gain qualifications and this has opened up alternative kinds of work to them. Despite the fact that modern technology has helped to take some of the back-breaking labor out of farming, many women are unwilling to put up with the isolation of the countryside. No wives also means no children to inherit the farm.
The effects of the world recession are being felt all over and Switzerland is no exception. Increasing levels of debt to GDP are playing havoc with national currencies and countries trying to manage the risk are often making the problems worse. Swiss problems are less severe than those of Greece, Spain and Italy so they should not be considered a major problem nation.
Switzerland is very traditional, and has mainly supported the same industries for the last 50 years. While there are institutions of scientific and technical research there, there are not major exports. The country also stays fairly isolated, which isn't good in our current global economy. Switzerland needs to innovate and expand its reach to keep its economy up.
No, Switzerland's economy is not in trouble, they just had a correction of their currency. Deflation is not necessarily a bad thing. It beats inflation. Switzerland has always had a strong economy, and they will manage this little hiccup. There were a few lines at currency exchanges but there does not appear to be a panic.
Switzerland, like much of Europe, is experiencing a downturn in its economy but this tiny European nation has many reserves and strong industries to save it from financial collapse. Switzerland's banking sector, while sliding currently, will rebound due to the well entrenched investment firms that have savvy and decades of experience dealing with these bumps in the road. Look to Switzerland to lead the European economy as it grows and builds.