Inflation pressures remain
Labour force growth is set to slow
Lower barriers can spur trade and domestic competition
Economic outcomes
Inclusiveness indicators
Sustainability indicators
A global shift towards more protectionism poses challenges for Switzerland’s open economy
The Swiss economy has slowed over the past year
The labour market has been robust
Consumer price inflation has retreated but inflation pressures remain
Monetary policy has been tightened
The large size of the SNB’s balance sheet raises risks and challenges
The housing market has started to cool
Government balance has returned to a surplus and the fiscal position is robust
: No new government support measures during the energy crisis
Tax revenues are titled towards direct taxation
Ageing creates fiscal pressures
Replacement rate across the income distribution
Population ageing raises costs related to pensions, health-care and long-term care
Population ageing impacts the labour market
Time spent in retirement is long and set to lengthen further
Recent reform has only temporarily eased financing pressures on the 1st pillar
Beneficiaries will face low replacement rates from mandatory pension schemes
Older Swiss people have low incomes compared to the rest of the population
Switzerland performs well in control of corruption
Anti-money laundering measures are effective in most aspects
The Swiss labour market is very strong in most respects
The unemployment rate has remained comparatively low even in times of crisis
Employers increasingly report difficulties in recruiting qualified workers
Labour shortages are likely to become a structural feature of the labour market
The high participation rate of women masks one of the highest incidences of part-time work
The gender gap in full-time equivalent employment is among the highest in the OECD
The cost of childcare is very high
The cost of childcare, taxes and withdrawal of benefits create disincentives for employment
There is a large gap in the use of childcare between low- and high-income households
The use of childcare is low
Public spending on childcare services is low
Parental leave specific to fathers is short and the replacement rate relatively low
Full-time employed women get paid less than men
There is room to strengthen labour demand for older workers
Once unemployed, older workers find it more difficult to reintegrate into the labour market
Employment rates fall steeply after 65
Immigration has been key for Switzerland’s economy
Migrants form a diverse population
Switzerland remains among the most attractive countries for global talent
Non-EU/EFTA migrants face lengthy paths to permanent settlement and citizenship
Switzerland attracts a high number of international students
Swiss university graduates from non-EU countries have a short time to find a job after graduating
Immigrants tend to have worse labour market outcomes than natives
Switzerland performs well in terms of emissions and energy efficiency
The largest potential for emission reductions is in the transport and buildings sectors
Emissions reductions will need to accelerate to reach targets
Switzerland prices its CO2 emissions at high rates
Effective carbon rates differ across sectors
The emission allowance price has converged with EU levels
Cars and other road transportation remain major emitters
There is room to reduce emissions for housing
Annual production of electricity is set to rise
Many Swiss companies plan investments towards climate mitigation and adaptation
Protectionism and supply disruptions have been rising
Switzerland is highly open to global markets
The movement of people and capital is very high
Switzerland has managed to perform relatively well during the past two crises
Pharmaceuticals manufacturing in Switzerland is less sensitive to cyclical conditions
Monetary policy has adjusted quickly and flexibly to sharp downturns
Automatic stabilisation of shocks to household disposable income
Short time work compensation schemes have been used during past crises
The public’s trust in the government is the highest in the OECD
Reliance on foreign inputs is generally lower than the OECD average
Swiss product-level dependencies mainly come from China
Swiss companies have effectively resolved risky dependencies
There is scope to reduce effective trade costs
Lower trade costs could boost Swiss economic activity
The EU is Switzerland’s largest trading partner
There is scope to increase the use of FTAs, primarily for imports
There is scope to improve trade facilitation measures
Barriers restrict trade in services
Restrictions on foreign direct investment are high in some sectors
Switzerland is a leader in R&D and ICT-related investments
SME Business R&D could be boosted
There is room to lower the administrative and regulatory burden further