Swiss economic growth suffers due to its wealth

Switzerland's wealth is paradoxically one of the reasons behind its sluggish economic growth in the ...

Switzerland's wealth is paradoxically one of the reasons behind its sluggish economic growth in the opinion of William Davies, manager of the Threadneedle European Growth fund. Although the country is rich by European standards, production costs are also high, meaning it loses out in terms of manufacturing capital investment "Switzerland grows more slowly than the rest of Europe," says Davies. "Inflation, interest rates and growth is lower. It is a very wealthy country but it does not have the same injection of capital into industry as elsewhere in Europe." It may have a very strong fina...