Oecd Economic Surveys Switzerland 2024

Switzerland has proved resilient through the pandemic, geopolitical turmoil and reverberations in energy markets. Unemployment and inflation are low, and living standards are among the highest in the OECD. This is reinforced by a dynamic market-based economy, highly skilled workforce and prudent macroeconomic policies. Yet, slowing growth amid continued price pressures pose challenges. A tight monetary policy is necessary to ensure that inflation remains durably within the central bank’s target range. Although a broadly neutral fiscal stance is warranted in the short term, longer-term fiscal pressures call for structural reform to counter rising cost of ageing and to support the green transition. S

Swiss citizens continue to enjoy high living standards on a range of dimensions. Economic growth has slowed but the healthy labour market is still supporting incomes and consumption. However, risks to the outlook are building. Monetary policy has been very accommodative but low interest rates are adding to financial risks. Fiscal policy is sound and debt low. There is scope to make greater use of available fiscal space. Adapting to population ageing is becoming pressing. This trend, along with digital transformation, will bring new opportunities for the economy and society, but challenges as well. Policies have not kept up with rising life expectancy, particularly the statutory retirement age. Updating the pension system and lowering barriers to working longer would ensure that workers continue to receive adequate incomes during retirement.

The Swiss economy has shown resilience but the COVID-19 pandemic continues to raise uncertainty and challenges. Effective government support has helped protect employment and buttress household incomes. Nevertheless, some sectors and groups have been hit hard, with a disproportionate impact on low-middle skilled and low-wage workers. Fostering productivity growth is crucial to maintain high living standards in the future. Switzerland is one of the top OECD performers in terms of labour productivity, but productivity growth has slowed markedly over the past three decades. Lower barriers to free and open competition within the internal market and continued openness to international markets would spur competitive pressures and raise productivity and growth. In addition, effective and sustainable use of resources can sustain stronger and more inclusive growth. Raising labour market inclusiveness, by keeping higher numbers of older workers in employment as well as reducing the gender pay gap, would help the recovery and improve living standards of all. SPECIAL FEATURE: FOSTERING A STRONG LABOUR MARKET TO SUPPORT THE RECOVERY AND SUSTAIN GROWTH

The Swiss economy has shown resilience but the COVID-19 pandemic continues to raise uncertainty and challenges. Effective government support has helped protect employment and buttress household incomes. Nevertheless, some sectors and groups have been hit hard, with a disproportionate impact on low-middle skilled and low-wage workers.

Estonia’s economy continues to perform well, and growing incomes support well-being. However, the expansion has peaked, and growth is set to soften due to weak international demand. Prudent fiscal policy has resulted in low debt, but spending pressures related to meeting infrastructure needs and ageing are mounting. Old age poverty is high and the proposal to allow early withdrawal of pension funds threatens macroeconomic stability and pension adequacy. The gender wage gap is among the highest in the OECD, and inequalities in income and health are considerable, reflecting gaps in the social safety net. The oil-shale sector is highly energy-intensive and is the main culprit behind Estonia’s high greenhouse gas emissions, but reducing dependence on the sector is challenging, as it is an important employer and meets 70% of Estonia’s energy needs.

Romania’s Recovery and Resilience Plan is helping drive reform while also channeling support to vulnerable people. More policy focus is needed on addressing Romania’s disparate socio-economic outcomes and to lift employment among groups underrepresented in formal work, including women. Faster progress is also required to decarbonise the economy by 2050.

OECD's 1967 Economic Survey of Switzerland examines foreign labour in the Swiss economy, recent economic developments, and recent policy developments and draws a series of conclusions.