Switzerland is one of the most competitive economies in the world, in large part thanks to its flourishing service sector. By international standards public debt in Switzerland is low, and the country has a competitive tax system. Small-and medium-sized enterprises are the mainstay of the export-oriented Swiss economy.
Switzerland's comparatively low level of public debt was achieved through a cap on public spending. Since then, the federal government has regularly reported an end-of-year surplus. The Swiss tax system reflects the country's federal structure. Competitive corporate tax rates set by the cantons make Switzerland an attractive location for companies, and many multinational corporations are based in Switzerland.
However the mainstay of the economy are still small and medium-sized enterprises (SMEs). Many of these companies are export-oriented, which is why Switzerland regularly runs a trade surplus.