Switzerland

Abstract

Switzerland has been somewhat unique in its response to the recent world recession, but the response is consistent with the rather exceptional structure of its economy and balance of payments. During the boom years of the early 1970s Switzerland registered steady real growth at about 3 per cent per annum, but inflation was increasing at a relatively rapid rate for that country, averaging over 7 per cent a year. The balance of payments was in current account surplus but at a low level. The exchange rate suffered some upward pressure, in line with the general upward pressure on European currencies.