Swiss Economic Growth Lags Other OECD Countries

by Ulrika Lomas, Tax-News.com, Brussels

14 May 2002

A recent report from the State Secretariat for Economic Affairs (SECO) has revealed that despite its reputation as one of Europe's richest countries, in terms of economic growth Switzerland is trailing behind the majority of the world's industrialised countries.

Citing the SECO study, the Swissinfo news service reported at the weekend that throughout the 1990s, economic growth in Switzerland was the lowest of all OECD member states, prompting Economics Minister, Pascal Couchepin to observe that: 'It's a bad position, which makes us ashamed'.

'If we do not reach a high level of growth we will have difficulties in solving social problems, particularly the problem of the aging population,' M. Couchepin told the newspaper on Saturday.

According to SECO, the problem lies with the relative lack of productivity growth, and of competition in internal markets. Although the Swiss work hard, other countries are more efficient at organising the production of goods and services, the report stated.

The Secretariat held up the principality of Luxembourg as an example of the sort of economic model to which Switzerland should aspire, explaining that although the standard of living in Luxembourg is higher, prices are much lower.

Speaking to Swissinfo, the body's head of economic analysis, Aymo Brunetti confirmed this:

'Productivity growth is a very complex issue and there are many determinants of it but I think one which is particularly important for Switzerland is the lack of competition in internal markets,' he explained. 'We still have a very high price level in Switzerland which is an indication of very low competitive pressure.'

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