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Title page
Contents
Abstract 4
Résumé 4
Adapting to a changing global economic landscape 8
Switzerland's high living standards are underpinned by a highly open economy 9
Openness to trade, capital and migration is high 9
Switzerland has weathered recent global shocks relatively well 11
Addressing supply disruptions 16
Anticipating supply disruptions 18
Identifying vulnerabilities through good monitoring systems 20
Bridging supply shortages through inventory management 23
Increasing resilience through deeper trade integration 26
Deepening and expanding free trade agreements 29
Improving trade facilitation and reducing barriers to trade and capital flows 31
Refraining from distortive industrial policies while sustaining innovative capacity 34
Improving regulation to strengthen competition 38
References 41
Figure 1.1. Protectionism and supply disruptions have been rising 9
Figure 1.2. Switzerland is highly open to global markets 10
Figure 1.3. The movement of people and capital is very high 11
Figure 1.4. Switzerland has managed to perform relatively well during the past two crises 12
Figure 1.5. Pharmaceuticals manufacturing in Switzerland is less sensitive to cyclical conditions 13
Figure 1.6. Monetary policy has adjusted quickly and flexibly to sharp downturns 13
Figure 1.7. Automatic stabilisation of shocks to household disposable income 14
Figure 1.8. Short time work compensation schemes have been used during past crises 15
Figure 1.9. The public's trust in the government is the highest in the OECD 17
Figure 1.10. Reliance on foreign inputs is generally lower than the OECD average 22
Figure 1.11. Swiss product-level dependencies mainly come from China 22
Figure 1.12. Swiss companies have effectively resolved risky dependencies 26
Figure 1.13. There is scope to reduce effective trade costs 27
Figure 1.14. Lower trade costs could boost Swiss economic activity 28
Figure 1.15. The EU is Switzerland's largest trading partner 29
Figure 1.16. There is scope to increase the use of FTAs, primarily for imports 30
Figure 1.17. There is scope to improve trade facilitation measures 32
Figure 1.18. Barriers restrict trade in services 33
Figure 1.19. Restrictions on foreign direct investment are high in some sectors 34
Figure 1.20. Switzerland is a leader in R&D and ICT-related investments 36
Figure 1.21. SME Business R&D could be boosted 37
Figure 1.22. There is room to lower the administrative and regulatory burden further 39
Boxes
Box 1.1. The short time work compensation schemes protect employment during severe crises 15
Box 1.2. Crisis preparedness has been elevated since the two World Wars 18
Box 1.3. The Swiss Federal Office for Economic Supply (FONES) 19
Box 1.4. The OECD Recommendation on the Governance of Critical Risks 20
Box 1.5. The National Emergency Supply Agency in Finland 23
Box 1.6. Switzerland stockpiles essential goods and materials 25
Box 1.7. Lower effective trade costs would yield significant economic gains 28
Box 1.8. The use of Switzerland's free trade agreements 30
Box 1.9. Recent industrial policy initiatives in the EU and the United States 35
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