Switzerland: 2010 Article IV Consultation: Staff Report; Public Information Notice on the Executive Board Discussion; Statement by the Executive Director for Switzerland, and Informational Annex
IMF Staff Country Reports, May 20, 2010
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- Switzerland: 2010 Article IV Consultation: Staff Report; Public Information Notice on the Executive Board Discussion; Statement by the Executive Director for Switzerland, and Informational Annex
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Bibliographic details
- Published: May 20, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455205899.002
Overview
- Switzerland was hard hit by the global crisis; however, the 1.5 percent contraction in 2009 compares favorably with most industrial countries.
- After a year-long decline in real GDP, the economy exited the recession in mid-2009.
- In response to the crisis, the authorities took a series of actions in a broad range of policy areas.
- Financial sector measures helped to stabilize financial markets and reduce systemic risk.
- The authorities are now contemplating how to exit from the current accommodative stance.
Key findings
- Real economy: A year-long decline in real GDP ended in mid-2009 with the economy exiting the recession.
- Magnitude of downturn: A contraction of 1.5 percent in 2009.
- Policy actions: Authorities implemented a series of measures spanning multiple policy areas in response to the crisis.
- Financial stability: Financial sector measures contributed to stabilizing markets and reducing systemic risk.
- Policy challenge going forward: How to exit from the current accommodative stance.
Policy implications and considerations
- Continue to evaluate and sequence exit strategies from accommodative policies, taking into account stabilization gains in financial markets.
- Maintain focus on financial sector measures that reduce systemic risk while monitoring unintended effects of accommodative policies on inflation, real estate prices, and income distribution.
Subjects and keywords (as listed)
- Subjects: Banking, Expenditure, Fiscal stance, Income, Inflation, Labor, National accounts, Personal income, Prices, Real estate prices
- Keywords: CR, economic statistics, economy, FINMA memorandum of understanding, Global, government, Income, Inflation, ISCR, liquidity standard, policy dialogue, Real estate prices, risk diversification requirement, SNB