The Swiss economy was also assessed this year on the heart and kidneys. The result is an expert report by the organization for economic cooperation and development (OECD). First the good news: “The economic prosperity significantly,” say it in a Chapter heading. So, Switzerland has the third highest gross domestic product per capita of all the OECD members.
But then the experts go over the risks and criticism. It sounds like a luxury problem: The Swiss save too much and spend too little. “The budget surplus in the years 2017 and 2018, more than one percent of the gross domestic product,” the statement said. The conclusion: Within the debt brake, there would be room to increase the expenditure. This would serve monetary policy, and economic and social positive impact.
a New Standard
the occasion for Action, the OECD also looks at the real estate market. A first step is done with the higher hurdles from 2020 in the granting of mortgages for return objects. The experts suggest but, in addition to create a Standard for lending. This should be based on the “Comply or explain”principle. This means that anyone who does not follow the set rules, it must explain why it does.
a Lot of potential for improvement, the authors of the report found that the pension and, more generally, when dealing with the ageing population. “Too high” was about the conversion rate, i.e. the percentage that is calculated from the accumulated assets of the pension.
Who lives longer, longer
Clearly, the instruction at the retirement age: “Set the retirement age as planned for both sexes to 65, increase it gradually to 67 and link it then with the life expectancy.” In reality, the voting public has a say in things. So easy, the step is-for-step-Plan not to implement. Overall, the Chapter on “the age includes invitations” ten Action.
The OECD also published its new forecasts. During growth there is a further downward adjustment. The real gross domestic product (GDP) is expected to grow in 2019 to 0.8 percent. Originally, the forecast was 1.6 percent. In may, the OECD reduced the growth forecast to 1.0 percent. The Old the organization, in terms of unemployment remains. (jfr)