Switzerland has shown strong economic resilience despite recent shocks, thanks to its robust institutions and prudent macroeconomic management, but high geopolitical risks and trade uncertainty are weighing on the outlook. Ambitious reforms are needed for the country to remain competitive and innovative.
The latest OECD Economic Survey of Switzerland projects GDP growth of 2.0% in 2026 and 1.4% in 2027, after growth of 1.6% in 2025. Inflation was 0.2% in 2025 and should remain low, at 0.6% in both 2026 and 2027, partly thanks to Switzerland’s low energy-intensity. Strengthening ties with key trading partners and continuing to seek new trade partnerships, while swiftly implementing reforms to financial regulation and supervision, would help revive growth and improve resilience.
‘‘Switzerland has one of the most prosperous and innovative economies in the world. The priority now is to keep its competitive edge while ensuring public spending is sustainable,” OECD Secretary-General Mathias Cormann said, presenting the Survey in Bern alongside Switzerland’s Director of the State Secretariat for Economic Affairs Helene Budliger Artieda. “Stronger competition and lower administrative burdens would boost productivity. More efficient healthcare spending and linking the retirement age to life expectancy would improve the fiscal outlook.”
Switzerland should implement measures to broaden productivity growth as it currently relies on a few key sectors such as pharmaceuticals and precision manufacturing. Competition should be enhanced in network sectors like energy, including through the new electricity agreement with the European Union. Lowering entry barriers and state involvement, while reducing non-tariff barriers and streamlining administrative processes, could lift productivity and competitiveness.
A recently enacted 13th month pension payment remains unfunded, and the federal government has committed to increase defence spending starting from the 2027 budget, adding uncertainty to the fiscal outlook. The ageing population and the impacts of climate change are increasing spending pressures, putting long-term debt sustainability at risk, according to the new OECD Economic Survey.
Better co-ordination among cantons and with the federal authorities regarding hospital planning to reduce capacity overlaps would secure long-term savings in healthcare. Linking the retirement age to gains in life expectancy would be an effective way to ensure the long-term fiscal sustainability of the pension system as in other OECD countries.
Closing the gap between regulated rents for existing tenants and market rents for new leases would create incentives to rent out available properties, stimulating housing supply. In addition, harmonising building standards and construction laws across cantons, and accelerating the delivery of construction permits by mainstreaming electronic processing, could help speed up construction projects and reduce costs.
To mitigate the costs of climate change, Switzerland should strengthen co-ordination between levels of government, as cantons are responsible for implementing adaptation measures, leading to uneven progress. The hazard insurance system has been performing well. But it could be further improved by allowing insurers to grant premium discounts for investments in proactive adaptation.
See the Overview of the 2026 Economic Survey of Switzerland with key findings and charts (this link can be used in media articles).
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