Video - Economic Survey of Switzerland 2026

Switzerland has one of the world’s most prosperous and dynamic economies. Strong institutions and prudent macroeconomic management have helped it to weather recent shocks.

But high trade tensions and geopolitical uncertainty are creating new challenges. Ambitious reforms would help revive growth and preserve Switzerland’s position as one of the most competitive and innovative economies.

GDP growth is projected at 2.0% in 2026 and 1.4% in 2027.

Inflation is expected to remain low at 0.6% through 2027, due to the strong Swiss franc, the service-oriented structure of the economy, and the low energy-intensity of Switzerland’s industry.

Switzerland’s public finances are strong but clouded by some near-term uncertainty. At the same time, long-term spending pressures are emerging from population ageing, climate change and defence spending.

To ensure long-term fiscal sustainability:

• Link future increases in the retirement age to gains in life expectancy

• Improve overcapacity in healthcare through stronger coordination across cantons

• Expand public spending reviews beyond public subsidies

• Increase the low value-added tax rate to support compliance with the debt brake

Housing affordability has become increasingly challenging as supply has struggled to keep up with demand. Cities and tourist destinations are particularly affected.

To make housing supply more responsive:

• Reduce uncertainties related to land-use planning

• Harmonise construction and building regulations across cantons

• Accelerate building permitting procedures with electronic processing

• Reduce the gap between regulated and market rents to increase incentives for housing investment

Switzerland is experiencing increasing economic, social and fiscal costs due to climate change.

To limit the impact of global warming:

• Improve coordination on climate adaptation across levels of government

• Require disclosure of climate risks in property transactions

• Align construction standards with modern resilience requirements

• Allow insurers to offer premium discounts for investments in effective adaptation measures

Productivity growth has been concentrated in a few export-oriented industries and large firms. Broadening productivity gains across the economy would help sustain long-term growth and living standards.

To boost productivity growth:

• Strengthen competition in network sectors, including in the electricity market

• Reduce administrative burdens and non-tariff barriers to trade

• Broaden access to affordable childcare and make adult learning more flexible

• Boost knowledge transfer by expanding regulatory sandboxes, improving intellectual property agreements and centralising research data

Explore the full analysis in the OECD Economic Survey of Switzerland 2026.  oe.cd/switzerland