OECD Economic Survey : Switzerland, 1995-1996.

185 Pages·10.639 MB·English

by  OECD

SWITZERLAND
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OECD
ECONOMIC
SURVEYS
1995-1996
SWITZERLAND
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
ORGANISATION FOR ECONOMIC COOPERATION
AND DEVELOPMENT
Pursuant to Article 1 of the Convention signed in Paris on 14th December I960,
and which came into force on 30th September 1961, the Organisation for Economic
Co-operation and Development (OECD) shall promote policies designed:
- to achieve the highest sustainable economic growth and employment and arising
standard ofliving in Membercountries, while maintaining financial stability, and
thus to contribute to the development of the world economy;
- to contribute to sound economic expansion in Member as well as non-member
countries in the process of economic development; and
- lo contribute to the expansion ofworld tradeon a multilateral, non-discriminatory
basis in accordance with international obligations.
The original Member countries of the OECD are Austria, Belgium, Canada,
Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the
Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the
United Kingdom and the United States. The following countries became Members subse¬
quently through accession at the dates indicated hereafter: Japan (28th April 1964),
Finland (28th January 1969), Australia (7th June 1971), New Zealand (29th May 1973),
Mexico (18th May 1994), the Czech Republic (21st December 1995) and Hungary
(7lh May 1996). TheCommission ofthe European Communities takes part in the work of
the OECD (Article 13 of the OECD Convention).
Publié également en français.
© OECD 1996
Applications for permission to reproduce or translate all or part of this
publication should be made to:
Head ofPublications Service, OECD
2, rue André-Pascal, 75775 PARIS CEDEX 16, France.
Table of contents
Introduction 1
I. Recent trends and short-term prospects 3
A stagnating economy 3
Little job creation 11
A stable price level 13
A declining current external surplus 17
The outlook to 1997 21
II. Economic policy 25
Monetary policy 25
Fiscal policy 32
III. Implementing the OECD Jobs Strategy 45
Introduction 45
Labour market and employment performance 49
Policy requirements 59
Recent policy actions 77
Assessment and scope for further action 83
IV. New directions in environmental policy 88
Introduction 88
Breaking the link between the use of environmental resources
and economic growth 90
Some major challenges for environmental policy 96
Integrating environmental considerations into government policy 102
Transport 103
Agriculture 109
Energy 110
Integrating economic considerations into the choice of policy
instruments 112
Costs of environmental protection and its effects
on competitiveness 120
Assessment 122
V. Conclusions 125
Notes 135
Bibliography 148
Annex
Calendar of main economic events 152
Statistical annex and structural indicators 155
Boxes
1. The OECD Jobs Study: synopsis of recommendations
for Switzerland 47
2. The measurement of unemployment 56
3. Public transport in the city of Zurich 108
4. Economic instruments 113
Tables
Text
1. Supply and use of resources 8
2. Comparison of recoveries 10
3. Employment in the 1990s 12
4. Price trends 15
5. Current external account 20
6. Short-term projections 24
7. Monetary aggregates 29
8. Government accounts 33
9. Central government budget 35
10. Composition and growth in the Confederation's expenditures,
budget categories 37
1 1. Composition and growth in the Confederation's expenditures,
economic categories 38
12. Composition and growth in the Confederation's receipts 39
13. Financial outlook of the Confederation, 1997-99 43
14. Cyclical responsiveness of the labour force 50
15. Cyclical responsiveness of employment 53
16. Level and structure of recent unemployment 55
17. Indicators of the structural rate of unemployment 58
18. Social security and related benefits 64
19. Evolution of unemployment benefits 65
20. Duration and level of cantonal unemployment assistance
benefits, 1994 67
21. Replacement rates for single-earner households, 1994 68
22. Concentration limits for air pollutants 98
23. State of mammals, birds and fish, early 1990s 101
24. Overview of environmentally-related taxes and charges
in OECD countries 114
25. New environmental taxes 116
26. Environment industry in OECD countries 121
Statistical annex and structural indicators
A. Selected background statistics 156
B. Gross national product, current prices 157
C. Gross national product, 1980 prices 158
D. Producer and import prices 159
E. Money supply 160
F. Interest rates and capital markets 161
G. Foreign trade by area 162
H. Foreign trade by commodity group 163
I. Balance of payments 164
J. Gross value added by main area of activity 165
K. Labour market: structural and institutional characteristics 166
L. The structure of taxation 167
M. Interest rate margins in banking 168
Figures
Text
1. Key aspects of economic activity 4
2. The output gap 5
3. Contribution to real GDP growth 7
4. Output, labour force and employment ] 1
5. International comparison of consumer prices 14
6. Selected components of inflation 16
7. Competitiveness and trade 18
8. Foreign trade indicators 19
9. Indicators of activity 22
10. Interest rates 27
11. Exchange rates 28
12. The adjusted monetary base 31
13. Budget balances and debt 34
14. Cyclically-adjusted budget balances 42
15. Key features of the labour market 46
16. Employment and labour force 50
17. Foreign workers by status 52
18. The Beveridge curve 57
19. Average and marginal tax wedges in the early 1990s 62
20. Research and development intensity and high-tech exports 76
21. Emissions of air pollutants and CO2 91
22. Waste 92
23. Consumption of fertilisers and pesticides 94
24. Changes in freshwater abstractions 95
25. Total final consumption of energy 96
26. S02, NOx and VOCs emissions and objectives 99
27. Concentration of nitrates in various groundwater wells 100
28. Prices and taxes on gasoline sold to households, 1994 105
29. Passengers of the Zurich public transport system 108
30. Energy consumption by category 111
BASIC STATISTICS OF SWITZERLAND
THE LAND
Area(1 000sq.km) 41.3 Majorcities, 1993estimates(1 000inhabitants):
Cultivatedland, grasslandandpastures Zurich 355.3
(1 000sq.km). 1979/85 15.8 Basle 180.0
Forest(1 000sq.km), 1979/85 12.5 Geneva 173.5
Bern 135.1
THEPEOPLE
Population,December31, 1994,estimates (1 000) 7019 Numberofforeignworkers(1 000),
Numberofpersonspersq.km 170 endofAugust 1995 939
Net annualrateofpopulationincrease Averageincreasein thenumberofforeignworkers
(per 1 000inhabitants,average 1990-94) 9 census,endofAugust (1 000):
Civilianemployment. 1995 (1 000) 3783 1962-72 16.8
Percentagedistribution: 1973-95 1.1
Agriculture 4.1
Industryandconstruction 28.9
Otheractivities 67.0
PRODUCTION
Grossdomesticproductin 1995 Valueaddedbyorigin in 1991
(billionSwissfrancs) 359.4 (inpercenlofGDPatfactorcost):
GrowthofrealGDP, 1990-95average Agriculture 3.0
(annualrate,percent) 0.2 Industry 25.4
Realgrossfixedinvestmentin 1995 Construction 8.1
(inpercentofGDP) 29.7 Services 65.2
Growthofrealinvestment, 1990-95average
(annualrate,percent) 0.2
THE GOVERNMENT1
Publicconsumption in 1995 (inpercent ofGDPP)) 14.1 CompositionofParliament National State
RevenueoftheConfederationin 1995 (inpercent): Council Council
(inpercentofGDP) 10.4 Radical Democrats 45 17
Totaldebtin 1994(inpercentofGDP) 46.7 ChristianDemocrats 34 16
Socialists 54 5
CentralDemocratic Union 29 5
Other 28 3
l^astelections: 1995
Nexlelections: 1999
FOREIGN TRADE
Exportsofgoodsandservicesasapercentage Importsofgoodsandservicesasapercentage
ofGDP(average 1991-95) 35.9 ofGDP(average 1991-95) 32.2
Commodityexports Commodityimports
(fob, millionSwissfrancs, 1995) 96236 (cif,millionSwissfrancs, 1995) 94483
Percentagedistribution: Percentagedistribution:
Byareain 1995 Byareain 1995
ToOECDcountries 78.7 FromOECDcountries 90.5
ToEECcountries 62.3 FromEECcountries 79.8
ToOPECcountries 3.1 FromOPECcountries 1.2
Bycategoriesin 1995 Bycategoriesin 1995
Rawmaterialsandsemi-finishedgoods 31.7 Raw materialsandsemi-finishedgoods 33.8
Capitalgoods 34.7 Energy 2.8
Consumergoods 33.6 Capita] goods 27.5
Consumergoods 35.9
THE CURRENCY
Monetaryunit: Swiss franc CurrencyunitperUS$,averageofdailyfigures:
Year 1995 1.1802
April 1996 1.2287
1. Confederation,cantonsandcommunes.
Note: An internationalcomparisonofcertainstatisticsisgiven inanannextable.
This Survey is based on the Secretariat's study
preparedfor the annual review of Switzerland by the
Economic and Development Review Committee
on 14th May 1996.
m
Afterrevisions in the light ofdiscussionsduring the
review,final approval ofthe Surveyforpublication was
given by the Committee on 10th June 1996.
The previous Survey ofSwitzerland was issued in
September 1995.