Risks and challenges from the ongoing pandemic persist
The Swiss economy has shown its resilience in the face of a global crisis
The overall resilience masks high heterogeneity across sectors and groups
The Swiss enjoy a high standard of living and relatively low income inequality
The crisis has hit low-income households harder
The COVID-19 pandemic has yet to be overcome
Economic developments
Monetary policy remains accommodative
The build-up of imbalances in the residential real estate market has continued
Emergency fiscal measures pushed public balance into a deficit
The crisis had differing impacts across sectors
Switzerland is a top performer in terms of labour productivity and GDP per capita
Productivity is very high in a number of sectors
The globally competitive and high value-added economy is sustained by a highly skilled workforce
With ageing, productivity growth will be key to sustain living standards
Productivity growth has slowed: GDP per hour worked, USD, constant prices, constant PPPs, annual average % change
There is room to improve regulatory settings
Barriers to trade in services are higher than in most other OECD countries
Switzerland has benefited from high inward FDI
Switzerland has decoupled economic growth from domestic greenhouse gas emissions and material use but environmental pressures remain
Population is ageing rapidly
Employment rates fall steeply after 65
Ageing creates fiscal pressures
The replacement rate from mandatory pension schemes is expected to fall
Switzerland relies heavily on direct taxation
The tax system contributes to high indebtedness of Swiss households, while reliance on taxing immovable property is low
Switzerland’s VAT rate and revenues are among the lowest in the OECD
Switzerland performs well in control of corruption
Anti-money laundering measures are effective in most aspects