The Swiss economy has weathered recent shocks comparatively well. Automatic fiscal stabilisers and monetary policy have supported the economy, while ensuring price stability. But as a small open and highly globalised economy, Switzerland remains vulnerable to international developments, including trade and geopolitical uncertainty. Strengthening growth and resilience will hinge on strong ties with trading partners, expanding to new foreign markets, and closing remaining gaps in banking regulation, supervision and crisis management. The current fiscal position is strong, but the near-term fiscal outlook is subject to uncertainty and longer-term spending pressures are rising, calling for ambitious reforms to ensure future debt sustainability. These include improving the efficiency of healthcare spending and linking the retirement age to gains in life expectancy. Tensions on housing markets could be eased by making supply more responsive and reducing uncertainties related to land-use planning, construction permitting procedures, rent controls, and property taxation. In parallel, tighter coordination between land-use planning and climate adaptation needs, and updating construction standards to enhance building resilience, would limit the growing costs from climate change. Finally, increasing competition in key sectors and further streamlining and digitalising administrative processes would bolster productivity growth, including beyond export-oriented and larger firms.
Further reading
Press release English l Swiss German (Schweizerdeutsch)
