OECD Raises Switzerland Growth Forecast to 2 Percent

The Organisation for Economic Co-operation and Development raised Switzerland's growth forecast for this year to 2 percent, up from a previous prediction of 1.1 percent, following strong performance in the second quarter.

Despite the positive growth, the organization warned that Switzerland must implement tax and pension reforms to maintain global competitiveness. Specific recommendations include linking the retirement age to life expectancy to address an aging population and reforming property taxes to encourage wealthier households to vacate large dwellings to alleviate housing shortages.

Secretary General Mathias Cormann stated that Switzerland must secure fiscal sustainability and broaden productivity growth across more sectors. The organization also urged the Swiss government to maintain access to the European single market, diversify its trading partners, and increase lobbying transparency through a formal register and code of conduct. Additionally, the OECD expressed support for the strict capital requirements imposed on UBS.