Financials add CHF 88 bn to Swiss eco

The Swiss financial sector,known for its banking secrecy,boosts the economy humongously.

The Swiss financial sector,known for its banking secrecy practices,boosts the value of the national economy by as much as 88 billion Swiss francs apart from employing thousands of people,says a study.

In recent times,Switzerland’s banking sector has come under intense international pressure for secrecy practices,with many countries,including India,looking to get information about unaccounted money allegedly stashed in Swiss banks.

“The Swiss financial sector contributes directly and indirectly an annual added value of 88 billion Swiss francs (CHF) to the Swiss economy and employs 529,000 people,” a study by research entity BAKBASEL said.

Story continues below this ad

It was done on the behalf of the influential Swiss Bankers Association (SBA) and economiesuisse,an umbrella group representing the Swiss economy.

According to the report,one-third of Swiss economy’s growth between 1990 and 2009 is attributable to the financial sector,which expanded at an average real rate of 3.5 per cent over the past 20 years.

Out of the estimated value of CHF 88 billion,about CHF 60 billion comes directly from the nation’s financial sector.

“In addition,the sector creates 12 per cent of all jobs in Switzerland,with 5,29,000 people employed,44 per cent of them directly in the financial sector,” the study said.

Story continues below this ad

Moreover,annual tax revenue from the financial industry averaged CHF 14.4 billion,which accounts for around 14 per cent of the total tax revenue in Switzerland.