OECD Urges Switzerland to Reforms Amid Strong Economic Growth

The Organisation for Economic Co-operation and Development (OECD) has urged Switzerland to implement tax and pension reforms to maintain its position as one of the world's top economies. The OECD raised its growth forecast for Switzerland, predicting a 2% expansion this year, up from 1.1% in June.

The Paris-based organization cited Switzerland's strong performance in the second quarter as a reason for the revised forecast. However, officials cautioned that risks of trade impediments and a renewed appreciation of the Swiss franc remain elevated.

The OECD emphasized that Switzerland faces long-term spending pressures due to an aging population and housing shortages. It recommended an ambitious pension overhaul, linking retirement age to gains in life expectancy, as well as reforming property tax to incentivize older households to downsize.