Foundations for Growth and Competitiveness 2026

Switzerland

Switzerland is one of the top OECD performers in terms of GDP per capita. This position is underpinned by a highly open economy, a skilled workforce, and prudent macroeconomic policies, which result in high levels of productivity. The employment rate is comparatively high, and unemployment has remained low even during crises. Investment has slowed down in recent years but remains above the best performing OECD countries.

Several factors still hamper business creation and labour participation in Switzerland. Barriers to competition persist in network sectors like transport and energy, as well as in digital markets. New businesses often face more burdensome regulations compared to most OECD countries. Resolving insolvency takes longer than in most OECD countries and the recovery rate for creditors is low, resulting in inefficient capital reallocation. High childcare costs limit women’s participation in the labour market.

Economic performance

Gaps to the average of the upper half of the OECD countries

Source: Panel A: OECD, Economic Outlook database; Panel B: OECD, Labour Force Statistics database; Panel C: OECD, Economic Outlook and Productivity databases; Panel D: OECD, Economic Outlook and Annual National accounts, GFCF by assets databases.

Selected policy gaps

Source: OECD calculations based on the Foundations for Growth and Competitiveness database.

Competition: Increase competition in network sectors

Entry barriers and challenges to competition still exist in several network sectors, hampering business creation. Natural gas utilities are often local monopolies owned by municipalities, and only large customers can freely choose their supplier. Licenses for coach transportation are granted only if there are no existing services operating as concessions and publicly financed transport services are shielded from competition. There is also significant state involvement in mobile and fixed communications.

Recommendations

✓ Reduce public ownership in network sectors and align the corporate governance standards of cantonal state-owned enterprises (SOEs) with those of federal SOEs to further reduce distortions to competitive neutrality.

✓ Remove restrictions to licenses for road transportation.

✓ Improve market transparency by increasing the visibility of gas prices and enforcing fair market practices.

Competition: Update regulations to address anti-competitive practices in digital markets

Legislation changes are still needed to limit anticompetitive practices in digital markets. The competition authority has yet to conduct market studies in digital markets, and the cartel law needs to address the assessment of mergers in those markets.

Recommendations

✓ Conduct market studies for digital markets, including online marketplaces, online advertising, cloud computing, and smart devices.

✓ Ensure that the updated cartel law currently under discussion in parliament addresses mergers in digital markets when passed.

Business regulation: Reduce administrative burdens for new firms

According to the OECD’s Product Market Regulation indicators, Switzerland can improve the administrative and regulatory requirements for entrepreneurs starting a business. The costs involved in starting a limited liability company and the mandatory minimum capital requirements are comparatively high, and consistency of regulations at the subnational level is lacking. Obtaining licenses and permits in Switzerland is also subject to hurdles that exceed those in most OECD countries.

Recommendations

✓ When designing new regulations take into account additional financial and administrative costs they would impose on firms to avoid creating heavy burdens, especially for SMEs.

✓ Continue conducting sectoral studies to streamline existing regulations.

✓ Integrate cantonal government services into the government one-stop shop.

Business dynamism: Strengthen the insolvency framework

Effective insolvency regimes can enhance productivity by allowing the reallocation of capital from failed businesses in a fast and cost-efficient way. In Switzerland, resolving insolvency takes longer than in most OECD countries and the recovery rate for creditors is comparatively low. Switzerland lacks early-warning mechanisms for debtors, like on-line self-testing, and there are no fast-track and less costly insolvency procedures for SMEs.

Recommendations

✓ Improve early access of debtors and creditors to cost-efficient and speedy insolvency proceedings, including by allowing streamlined procedures for SMES.

✓ Ensure adequate resources for the application of insolvency law, including for recruiting and training staff.

Female employment: Improve access to affordable childcare

Gross childcare fees and out-of-pocket costs after deducting benefits are among the highest in the OECD, and parental leave specific to fathers is comparatively short. This creates disincentives for employment, especially for women. The incidence of part-time work is very high among women, leading to one of the widest gender gaps in full-time equivalent employment in OECD countries, and a high gender gap in median earnings.

Recommendations

✓ Keep expanding the supply of childcare and improve its affordability through targeted measures, such as mean-tested fee reductions, childcare benefits or tax credits.

✓ Increase paternity leave with a statutory parental leave system including entitlement reserved to fathers.

Recent progress on structural reforms

The Corporate Relief Act of 2023 aims at making new regulations more efficient and less burdensome, especially for SMEs. The costs for companies from new regulations must now be considered by lawmakers, and sectoral studies should help to streamline existing regulations. The Act also requires federal and cantonal authorities to offer their services for companies via the one-stop platform EasyGov. The revision of the Cartel Act currently deliberated in Parliament includes adjustments to the merger control regime which would include digital markets. A new childcare allowance for children up to the age of eight was approved in early 2025, and expansion and affordability of childcare is currently being addressed in Parliament.