The Swiss Franc Beats Them All

Original opinion piece by Ruchir Sharma, Chair of Rockefeller International

Strong currency? No problem

While the world debates whether the US should weaken the dollar to bring factories back home, Switzerland has been quietly proving the opposite: you can have a super-strong currency and a booming economy. In fact, the Swiss franc is the world’s strongest currency — and has been for decades.

Yet Switzerland isn’t just rich — it's productive and export-savvy too. Exports make up 75% of its GDP, and its global market share is close to 2%. In short: the Swiss aren’t just sitting on their money — they’re making it work.

High quality, high demand

The real magic? The “Made in Switzerland” label. Like Germany or Japan in their golden days, Swiss goods — from pharma to watches — are considered so high-end that buyers are willing to pay more, strong franc or not.

Switzerland constantly ranks at the top of global innovation indexes, thanks to major investments in education, research, and R&D. And it’s paying off: GDP per hour worked exceeds $100 — higher than any other major economy.

Small is powerful

Over 99% of Swiss businesses are small, yet mighty. Thanks to a decentralised system, small enterprises thrive — and many are global leaders in fields from chemicals to luxury goods.

And it’s not just about chocolate and timepieces: more than half of Swiss exports are classified as “high-tech”, over twice the US level. That’s helped Switzerland maintain a current account surplus averaging over 4% of GDP since the 1980s.

Swiss savings = global shield

All that trade money doesn’t sit idle: Switzerland invests it globally. Today, it has a net international investment surplus of more than 100% of GDP — a nice cushion when global markets wobble. Compare that to the US, weighed down by deficits.

Not perfect, but pretty close

Sure, Switzerland has high private debt — but unlike others, it’s not propping up loads of “zombie companies” that can’t even pay the interest on their loans.

Bottom line: Switzerland has built an economy that works in any weather. Recession? Boom? Dollar up or down? Doesn’t matter — the Swiss keep moving forward. Even after a 2015 currency shock, manufacturers quickly pivoted to more advanced exports that weren’t as sensitive to price swings.

The real takeaway? Devaluation isn’t the answer

Some say East Asia got rich by weakening their currencies. But in reality, infrastructure, investment, and foreign capital did more of the heavy lifting.

For wealthy countries, quality beats price. Devaluation might push you to make cheaper stuff — but long-term, it can hurt competitiveness. Switzerland proves that investing in excellence works.
If the US (or anyone else) wants to fix its industrial base, maybe it’s time to look to the Alps, not the exchange rate.