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Switzerland is on a good track economically. This is shown in a report from the Organization for Economic Co-operation and Development (OECD) published on Thursday.
However, he recommends that Switzerland further open its foreign policy and expand its commercial relations in order to become more resilient. In its new report, the OECD also recommends strengthening domestic competition and reducing the administrative burden on companies in order to increase the resilience and productivity of the economy.
Seco seems to have confirmed itself
According to the State Secretariat for Economic Affairs (Seco), the OECD’s recommendations fit well with Switzerland’s path. An important step was taken towards reducing trade barriers with the unilateral removal of industrial tariffs at the beginning of this year. Another is the acceptance of the authority to negotiate with the EU.
But the OECD recommends against costly industrial policy initiatives such as government financing or protectionist measures, according to Seco’s statement on the new OECD report.
According to Seco, more significant work to expand and solidify commercial relationships is currently underway. This also included the recently signed free trade agreement with India and the modernization of the recently concluded free trade agreement with Chile.
Switzerland shows it is crisis-proof
The OECD emphasizes that Switzerland has coped well with recent crises such as the corona pandemic or the sharp rise in energy prices following the start of the war in Ukraine. The economy also appeared resilient.
The national economic procurement system, which is based on corporate responsibility and allows state intervention only on a complementary basis and for essential goods, is also praised. The OECD therefore recommends that Switzerland maintain the system.
Compared to other countries, Switzerland is doing well: unemployment and inflation are low in Switzerland, and its standard of living is among the highest among the 38 OECD member countries. This will be strengthened by a dynamic market economy, highly skilled workforce and prudent macroeconomic policies.
Credit Suisse case worries OECD
However, the OECD is concerned about the immediate takeover of Credit Suisse by UBS. Although this situation ensured financial stability, it also created new risks and challenges for the Swiss economy. The largest bank merger since the financial crisis has created a group whose balance sheet total is almost twice the size of the country’s annual economic output (GDP).
Questions about competition also arise due to the merger of the two largest Swiss banks, according to the OECD. The combined bank holds about 25 percent of domestic deposits and loans. The OECD therefore recommends that Swiss authorities maintain strict supervision and control over the expanding bank. (SDA/kae)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
