Real GDP is expected to increase by 2.9% in 2021, 3% in 2022 and 2.1% in 2023. Activity rebounded in 2021 as containment measures were lifted, but the successive waves of the pandemic in the second part of the year have increased uncertainty. The continued growth in exports, notably in the chemical and pharmaceutical sectors, and improving sentiment should support private investment. Better labour market prospects and the reduction of currently high savings will underpin consumption growth. With high energy prices, inflation has crept up but is projected to remain moderate.
The recovery offers an opportunity to improve active labour market policies and reskilling and facilitate resource reallocation to restore productivity growth, notably through lowering internal barriers to competition.
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2021 Structural Reform Priorities
Switzerland’s living standards remain high. Its population is healthier than in many countries and is well educated. This contributes to high employment rates and narrow wage differentials. As a small open economy, Switzerland has benefited from the flow of ideas, people and capital. It boasts world-class industries and attracts international talent. Zurich and Geneva routinely rank among the world’s most liveable cities. The challenge is therefore to sustain these achievements.