OECD Publishes Economic Survey Of Switzerland

by Ulrika Lomas, Tax-News.com, Brussels

04 June 2002

In its Economic Survey of Switzerland, published on Thursday, the Organisation for Economic Cooperation and Development has echoed the findings of a study on Swiss competitiveness conducted recently by the Swiss State Secretariat for Economic Affairs (SECO).

The OECD report observed that: 'While Switzerland is still one of the richest countries in the world, the lead over most other OECD countries has dwindled during the last 20 years.'

It suggested that this was due to several structural factors, including low productivity growth and high price levels in comparison with many other countries, but concluded that current macroeconomic policies are fundamentally sound, and predicted that the Swiss economy should grow in the second half of this year.

However, it urged the Swiss authorities to pursue further liberalisation in several product markets, including agriculture, gas and electricity, telecommunications and the postal services, and to strengthen competition.

Responding to the OECD Economic Survey, SECO's Head of Economic Analysis, Aymo Brunetti told the Swissinfo news service:

'I think this report is quite in line with our own observations...that we have sound macroeconomic policies but that we have a long-term structural growth problem.' In terms of liberalisation of product markets, Mr Brunetti admitted that: 'We cannot go as fast as the OECD would like...but the aim of competition is the aim of the government too.'

The OECD report also suggested that although the jurisdiction's anti-money laundering legislation is both strict and effective, funds are still limited for the agency which monitors procedures in the parabanking sector. It added that the effectiveness of self-regulating organisations must also be examined.

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