The economics of Switzerland and

Prepared by Sviatoslav, Denys, Dmytro

Uzbekistan
Short characteristics of countries
Switzerland
Switzerland, officially the Swiss Confederation, is a small mountainous country located in
central Europe. This landlocked country is about the size of New Jersey and is between France
and Italy.

Switzerland is one of the world’s major financentersntres; its economy is based largely on
international trade and banking, as well as light and heavy industries. Manufactures include
watches, precision instruments, machinery, and chemicals. Tourism and agriculture are also
important; products include grains, sugar beets, fruits and vegetables, dairy products, chocolate,
and wine. Despite diverse ethnic groups, religions, and languages, Switzerland has maintained
the world’s oldest democracy for some 700 years. It is a federal state with two legislative houses;
its head of state and government is the president of the Federal Council.

OFFICIAL NAME: The Swiss Confederation

POPULATION: 8,292,809

CAPITAL: Bern

AREA: 15,940 square miles (41,284 square kilometers)

OFFICIAL LANGUAGES: German, French, Italian, Romansch

MONEY: Swiss franc

Uzbekistan
the Republic of Uzbekistan, is a doubly landlocked country located in Central Asia. It is
surrounded by five landlocked countries: Kazakhstan to the north; Kyrgyzstan to the northeast;
Tajikistan to the southeast; Afghanistan to the south; and Turkmenistan to the southwest.

· The aria of the territory is 448,924 km².

· The population is about 36000000 people. Вже на слайді
· Capital – Tashkent.
· State language – uzbek.

The Uzbek language is the majority-spoken language in Uzbekistan, while Russian is widely
spoken and understood throughout the country. Tajik is also spoken as a minority language,
predominantly in Samarkand and Bukhara.Islam is the predominant religion in Uzbekistan, most
Uzbeks being Sunni Muslims.

Uzbekistan is part of the Turkic world, as well as a member of the Organization of Turkic States,
it’s a democratic state, the leader of the country – president Oliy Majlis
Fun Facts You Didn’t Know
Switzerland
 There are four official languages/Switzerland is divided into four different language
regions: French in the western part, Italian in the southern part, Romansh in some areas
of the southeast, and Swiss-German in the rest. 

 The Alps make up almost 60% of the country

 Owns Lots of Guns, but Has the Lowest Crime Rates

 One of the Countries With the Highest Quality of Life

 One of the Most Expensive Places to Live In

 Swiss franc is one of the most beautiful bills in the world

Uzbekistan
1. Uzbekistan is the country with the smallest denominations in the world. The largest
banknote here is 5,000 sum (translated from Uzbek means "ruble"), which is about 1
dollar. A KAMAZ driver carrying a bag of money and paying for refueling with a stack of
eight hundred of the largest bills, railway cashiers selling tickets to Russia for four
hundred paper money are an everyday occurrence here.

2. Uzbekistan today is one of the rare countries where the market and official dollar
exchange rates differ significantly (the dollar officially costs 1600, in reality it is 2200, it
is almost impossible to buy currency in a bank). All locals change money in the markets,
but for a foreigner it is better not to do this.

3. Uzbekistan is one of the two countries of the former USSR, where the leader of the
country remained unchanged from the time of the USSR until September 2016. At the
same time, according to official data, exactly 100% of the population supports the leader.
There is not a single opposition newspaper in the country, and it is impossible to get to an
opposition site from an Internet cafe - it is blocked. All parties here support the President.

4. Despite 19 years of independence, the cost of even domestic train tickets is pegged to the
Swiss franc and is growing weekly.

5. Uzbekistan is the birthplace of television. On July 26, 1928, the first prototype of the
Telephot was successfully tested in Tashkent, which became the prototype of the modern
television. It was designed by a group of talented enthusiasts led by a young Tashkent
inventor Boris Grabovsky.
Most profitable businesses
Switzerland

One of the most popular companies that probably everyone knows about it Nestle.1
Nestlé was founded in 1866 in Switzerland and is the largest food company in the world.
Roche is pharmaceutical company, one of the world's leading companies in the field of
pharmaceuticals and ranks first in the world in the field of diagnostics. It is one of the
manufacturers of biotechnological medicines in the field of oncology, virology, transplantology.
Glencore is trading company, one of the world's largest suppliers of raw materials and rare earth
materials. In 2006, the company ranked 6th among European companies in terms of turnover.

Uzbekistan
· AMMC - $345 282 431.48

Almalyk Mining and Metallurgical Combine, which has six mines, five enrichment
complexes, three metallurgical plants, mainly export-oriented copper pipes, and cement
producer Jizzakh and Sherobod cement factories, are equipped with state-of-the-art
vehicles, with 7 motorized vehicles, The Railroad Transport Administration, which
incorporates 3 railway workshops, and about 40 auxiliary facilities, workshops and
departments. They are the Combine Localization Program Centre Repairing Mechanical
Plant, Limestone Plant, which supplies lime raw materials for our enterprises, Explosive
materials factory, which facilitates the mines' work, as well as the Thermal Power Plant,
Industrial Water Supply, Electricity Network Administration, Capital Construction
1
https://companiesmarketcap.com/switzerland/largest-companies-in-switzerland-by-market-cap/
 Administration, Combine and the Almalyk Mining and Metallurgy Trust, the Department
for Specialized Repair Works, and others. The gold and silver producing in the combine
have a quality label of the London gemstone stock exchange, that is "Good Supplier". In
the copper production process has been introduced quality management system and
received an International Compliance Certificate. This certificate of conformity is also
given to the Combine’s cement production process in Jizzakh.
· Uzbekneftegaz - $301 015 453.09

JSC Uzbekneftegaz began its activities in 1992 as the only oil and gas company. It aims
to maximize opportunities for a significant increase in hydrocarbon production, supplying
them to the domestic market, production of high value-added products, oil and gas
processing, export of technological products, export and marketing. - create favorable
conditions for attracting foreign direct investment in the gas industry.
Intensification of exploration is a key factor in creating a reliable resource base that will
last for many years. The main goal is to increase the industrial reserves of hydrocarbons
beyond their production. For this, the company began to use new methods and advanced
technologies in the exploration of oil and gas fields. The work carried out in those years
confirmed that the Bukhara-Khiva and Surkhandarya regions of the country have great
prospects in this regard. In particular, rich reserves were discovered on Ustyurt, and large
deposits of natural gas, such as Surgil, East Berdakh and Uchsai, were discovered on its
territory.
· Ferganaazot - $259 050.36

In 1958, in Fergana, the government decided to build a factory for the production of
nitrogen fertilizers and, through hard work, in September 1962 the first product,
ammonium nitrate, was produced.

Since then, it's been 50 years - half a century. These were the years of really intense and
hard work, great creativity, continuous research, learning and growth.
Today, the open joint-stock company "Fargonaazot" is one of the largest industrial
enterprises in the structure of "Uzkimyosanoat". The factory’s products not only meet the
demand for agricultural products, but also are exported to foreign countries.
 In particular, during the years of independence, there was a significant growth and
development of the company in all sectors and spheres. Thanks to the merits of the first
president of our country, I.A. Karimov, the chemical industry began its development on
the basis of modern equipment and technologies for a set period of time. For the years of
independence here, the production department of the defoliant of magnesium chlorate,
which meets the international environmental standards, has started its work. Also, shops
for the production of ammonium nitrate and concentrated nitric acid have been completed
and put into operation.

Distribution of gross domestic product (GDP) across economic sectors from 2011 to 2021
GDP analysis

Switzerland

Due to the coronavirus

pandemic and the
restrictive measures
introduced by the
Swiss government to
contain the disease,
economic activity in
the country has been
severely limited. Thus,
in the 1st quarter of
2020, Switzerland's
GDP decreased by
2.6%, after an increase
of 0.3% in the 4th
quarter of 2019.

The sharpest point of economic

decline was observed according
to the results of the II quarter.
The Swiss economy shrank by
8.2%. The indicated quarterly
recession of the economy was
the strongest in the last 40
years. The hotel sector of the
economy and the food service
sector were the most affected,
which overall decreased by
54.2%. The cumulative decline of the economy for the first half of the
year amounted to 8.6%.
Switzerland GDP for 2021 was $812.87B, a 8.06% increase from 2020.
Gdp for 2020 was $752.25B, a 2.8% increase from 2019. Gdp for 2019
was $731.77B, a 0.51% decline from 2018. Gdp for 2018 was $735.54B,
a 4.41% increase from 2017.

Uzbekistan
The Uzbek economy is in a gradual transition to the market economy, with foreign trade policy
being based on import substitution. Sectoral structure of GDP for 2017: agriculture - 19.3%,
industry - 33.4%, services - 47.3%.

Most of the country's population lives in rural areas, that’s why a lot of people (about 40%)
involved in agriculture. Directions: cultivation of cotton, grapes, rice, figs, some fruits, melons
and nuts. Livestock is dominated by sheep breeding, Uzbekistan is a major producer and exporter
of cotton.

With the gigantic power-generation facilities from the Soviet era and an ample supply of natural
gas, Uzbekistan has become the largest electricity producer in Central Asia. From 2018 to 2021,
the republic received a BB- rating by both Standard and Poor (S&P) and Fitch. Strengths
indicated by the Brookings.

In terms of gold reserves, the republic ranks 4th in the world, and in terms of its production - 7th
place (about 100 tons of gold every year). The national company Uzbekneftegaz ranks 11th in
the world in terms of natural gas production (annual gas production is 60-70 billion m³). 194
deposits of hydrocarbon raw materials, of which 98 are gas and condensate deposits, 96 are oil
and gas.

As of July 1, 2019, there were 66.6 thousand enterprises in the Republic, about 14.5 thousand of
them were located in the capital.
From September 1, 2021, the minimum salary in Uzbekistan is 822,000 soums ($75.44), the
average salary in the country is about 3.5 million soums ($309.33). The largest denomination is
200,000 soums, equal in value to 18 US dollars (as of August 2022).

Institution include Uzbekistan having large liquid assets, high economic growth, and low public
debt. Among the constraints holding the republic back is the low GDP per capita. Uzbekistan is a
member of the Commonwealth of Independent States (CIS), United Nations and the Shanghai
Cooperation Organisation.

https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?
end=2021&locations=CH&start=2017

Switzerland's GDP per capita for 2021 was $93,457, a 7.3% increase from 2020.

GDP per capita for 2020 was $87,100, a 2.07% increase from 2019.

Gdp per capita for 2019 was $85,335, a 1.22% decline from 2018.

Gdp per capita for 2018 was $86,388, a 3.64% increase from 2017

https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?
end=2021&locations=CH&start=2017
 GDP per capita, PPP,Expenditure on GDP

Switzerland GDP per capita for

 2017- 69.103$
 2018-71.660$
 2019-72.033$
 2020-71.732$
 2021-77.273$
 https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?
end=2021&locations=CH&start=2017
Expenditure on GDP
https://country.eiu.com/switzerland

Uzbekistan
Uzbekistan exports ($14 billion in 2017) - cotton, gold, uranium ore, natural gas, mineral
fertilizers, metals, textile and food industry products, cars. For the second half of 2019, the total
foreign trade turnover of Uzbekistan is about $ 30 billion, of which exports are about 12.5
billion, imports are over 16 billion. China is the largest trading partner of Uzbekistan - about $ 6
billion, Russia is in second place - more than $5.5 billion, followed by Kazakhstan (more than $3
billion), Turkey (more than $2 billion), South Korea (about $2 billion), Germany (over $1
billion).
In November 2022, Russia overtook China and became the main foreign trade partner for
Uzbekistan - $ 8.34 billion (share - 18.6%). The volume of exports to Russia increased by 49.5%
to $2.8 billion, while imports increased by 17.3% to $5.54 billion. China dropped to second place
with $8.18 billion (18.2%). Next come Kazakhstan - $4.2 billion (9.3%), Turkey (6.5%) - $2.93
billion and the Republic of Korea - $2.17 billion (4.8%).
GDP analysis
Distribution of gross domestic product (GDP) across economic sectors from 2011 to 2021

In 2021 this

was

Services :

70.98%

Industry:25.64%

Agriculture: 0.64%

 Switzerland has maintained a low level of public debt relative to other countries
even during the COVID-19 crisis. At the start of 2021, gross government debt (before
deduction of financial assets) stood at approximately CHF 100 billion, representing 15%
of GDP.  
 Switzerland has the lowest VAT rate in Europe. VAT is payable on most goods and
services. A reduced rate of 3.7% is levied on accommodation services, while a 2.5%
VAT rate applies to basic necessities and other everyday items.
 Switzerland spends over CHF 22.5 billion on research and development (R&D) annually,
which equates to around 3% of GDP. The private sector contributes over two-thirds of
this amount.
 The currency of Switzerland is the Swiss franc. The franc is divided into 100 centimes.
The currency code for the Swiss franc is CHF.
Main trading
partners:
Germany
(US$105.5
billion), USA
(US$62.9
billion), Great
Britain
(US$44.9
billion), France
(US$38.6 billion
), Italy (US$
38.5 billion),
China (US$ 36.7
billion), India
(US$ 20.2
billion).

Switzerland remains a country with an extremely strong economy and a stable domestic market.

The EU is Switzerland's main trading partner. Around 66% of Swiss imports are from the EU, while 43%
of Swiss exports are to EU country
GNP
 Switzerland gnp for 2021 was $785.90B, a 10.13% increase from 2020.
 2020 was $713.59B, a 1.24% decline from 2019.
 2019 was $722.54B, a 1.9% increase from 2018.
 2018 was $709.06B, a 2.46% increase from 2017.
https://www.macrotrends.net/countries/CHE/switzerland/gnp-gross-national-product

Central government debt and information about

the budget
This chart shows the period from 2015 to 2020
the national debt of Switzerland was forecast to continuously decrease
between 2022 and 2027 by in total 16.1 billion U.S. dollars (-5.2
percent). .
Central government debt and information about the budget

The 2023 statement of financial performance shows a slight surplus of 304 million. A deficit had been
budgeted for 2022 (-498 mn). The improved result is due to stronger growth in current receipts (+3.0%)
than in current expenditure (+1.7%). In contrast, the budgeted valuation changes regarding administrative
assets are largely stable. Net investments will also remain stable at 4.5 billion in 2023.

The biggest change within the budget is happening in the sectors of social welfare and finance & tax.
These two sectors have been growing from 35% in 1990 to 48.2% in 2010 and the Federal Department of
Finance estimates that by 2015 they will account for more than half the federal budget expenditures.
On the other side, during the same period, a significant reduction of expenditures has been occurring in
the sectors of agriculture and national defence; from 26.5% in to 12.4% (estimation for the year 2015
Taxation and Market Regulation
Switzerland's taxation structure was formed by the country's three levels
of government: federal, cantonal and municipal. The following two
different taxes are charged:
federal taxes
cantonal and municipal taxes
The Swiss federal tax law is uniform throughout Switzerland, but each
of the 26 cantons has its own cantonal tax law. Municipal taxes are
levied as multiples of cantonal taxes. Since tax laws and tax rates vary
considerably between cantons and municipalities, choosing where to live
is an important element of tax planning.

The maximum total federal income tax rate is 11.5%. Various cantonal
and municipal taxes are also levied at progressive rates, with a
maximum combined cantonal and municipal rate of approximately 36%.
In addition, cantonal and municipal taxes are levied on net wealth.
The Swiss tax system is characterised by a high degree of tax autonomy
in the cantons. The Confederation, by contrast, may levy taxes only to
the extent permitted by the Federal Constitution. This power must be
reconfirmed periodically at the ballot box for the two most important
federal taxes.

The Federal Supreme Court and the tax administration have drawn up
rules for the allocation of tax liabilities between the cantons to avoid
double taxation.
The Swiss tax system reflects the country’s federal structure. Businesses and
individuals are liable to tax at federal, cantonal and communal levels. The Federal
Treasury collects around 30% of total tax revenue, the cantons 40% and the
communes the remaining 30%.

Direct taxes

Individuals and businesses pay direct taxes, which make up roughly 70% of total tax
revenue. These direct taxes comprise income tax at progressive rates, corporate tax on
profits at rates of between 11.7% and 21.6%, and personal wealth tax also charged at
progressive rates in the majority of cantons.

Inheritance tax is levied almost exclusively at cantonal level, with the vast majority of
cantons imposing a tax on estates.

However, there is a federal withholding tax, which is levied at a rate of 35% on bank
interest and lottery winnings. Withholding tax may be reclaimed in full provided that
taxpayers disclose the relevant assets and income in their tax return.

Indirect taxes

Indirect taxes account for roughly 30% of all tax revenue in Switzerland. The main
indirect tax is value added tax (VAT), which is levied at federal level. VAT is
currently payable at a rate of 7.7% of the total cost of the transaction, which is the
lowest rate in Europe. A reduced rate of 3.7% is levied on accommodation services,
while a 2.5% VAT rate applies to basic necessities and other everyday items. Medical
and educational services are exempt from VAT.
Swiss Budget 2010
Inflation
The inflation rate for consumer prices in Switzerland moved over the past 61 years between -
1.1% and 9.8%. The annual inflation rate in Switzerland fell to 2.8 percent year-on-year in
December 2022 from 3 percent in the prior two months, pointing to the lowest reading since
April.
Switzerland’s traditional high level of price stability A look at annual inflation rates shows that
Switzerland has experienced price increases in the last two decades
Unemployment
 Human index development

GINI Index
The Gini index is a measure of the distribution of income across a population.

A higher Gini index indicates greater inequality, with high-income individuals receiving much

larger percentages of the population’s total income.

2
The Global Competitiveness Index

2
https://www3.weforum.org/docs/GCR2017-2018/03CountryProfiles/Standalone2-pagerprofiles/
WEF_GCI_2017_2018_Profile_Switzerland.pdf
Switzerland (1st) continues to top the overall rankings, with strong results evenly balanced
across the different components of competitiveness. Economic performance benefits from
extremely strong fundamentals including public health, primary education, and acomparatively
solid macroeconomic environment.

Summarizing
The COVID-19 epidemic continues to provide difficulties, despite the Swiss economy's resiliency.

However, some industries and populations have been significantly affected, with low- to medium-
skilled and low-wage workers being heavily impacted. However, Switzerland continues to be among
the greatest nations for labor productivity, despite the fact that productivity growth has significantly
slowed over the past three decades.