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© 2003 International Monetary Fund

June 2003

IMF Country Report No. 03/148

Switzerland: 2003 Article IV Consultation—Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Switzerland

Under Article JY of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. In the context of the 20003 Article IV consultation with Switzerland, the following documents have been released and are included in this package:

  • the staff report for the 2003 Article IV consultation, prepared by a staff team of the IMF, following discussions that ended on February 24, 2003, with the officials of Switzerland on economic developments and policies. Based on information available at the time of these discussions, the staff report was completed on April 30,2003. The views expressed in the staff report are those of the staff team and do not necessarily reflect the views of the Executive Board of the IMF.

  • a Public Information Notice (PIN) summarizing the views of the Executive Board as expressed during its May 23, 2003 discussion of the staff report that concluded the Article IV consultation.

  • a statement by the Executive Director for Switzerland.

The document(s) listed below have been or will be separately released.

Selected Issues Paper

The policy of publication of staff reports and other documents allows for the deletion of market-sensitive information.

To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to

Copies of this report are available to the public from

International Monetary Fund • Publication Services

700 19th Street, N.W. • Washington, D.C. 20431

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Price: $15.00 a copy

International Monetary Fund

Washington, D.C.

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Staff Report for the 2003 Article IV Consultation

Prepared by the Staff Representatives for the

2003 Consultation with Switzerland

Approved by Alessandro Leipold and Martin Fetherston

April 30, 2003

The 2003 Article IV consultation discussions were held in Zürich and Bern during February 14-24, 2003. The mission comprised Messrs. Corker (Head), Gagales, and Klingen (all EU1). Messrs. Zurbrügg, Executive Director for Switzerland, and Moser, Advisor, attended the meetings. The mission met with Federal Councillor Villiger, Minister of Finance; Federal Councillor Deiss, Minister of Economics; President Roth, Chairman of the Governing Board of the Swiss National Bank (SNB); senior officials of the federal administration and the SNB; and representatives from parliament, NGOs, and the private sector. The authorities released the mission’s concluding statement and have agreed to the publication of the staff report.

Switzerland has accepted the obligations of Article VIII, Sections 2, 3, and 4 (Appendix II) and maintains an exchange system that is free of restrictions on payments and transfers for current international transactions. Switzerland subscribes to the Fund’s Special Data Dissemination Standard (Appendix III). The last Article IV consultation was concluded on May 29, 2002 (IMF Country Report No. 02/106).


  • I. Introduction

  • II. Economic Backround

  • III. Report of the Discussions

    • A. The Economic Outlook

    • B. Monetary Policy

    • C. Fiscal Policy

    • D. Financial System

    • E. Structural Policies

    • F. Other Issues

  • IV. Staff Appraisal

  • Tables

  • 1. Contributions to Growth Deceleration

  • 2. Selected Countries: Decline of Machinery and Equipment Investment

  • 3. Selected Countries: Yield Developments, December 2000-December 2002

  • 4. Staff Fiscal Projections

  • 5. Indicators of External and Financial Vulnerability

  • Boxes

  • 1. IMF Policy Recommendations and Implementation

  • 2. Deflation Risks

  • 3. Underfunding of Pension Funds

  • Figures

  • 1. Main Indicators

  • 2. Real GDP

  • 3. Leading Indicators

  • 4. Exports and Partner Imports

  • 5. Exchange Rates

  • 6. Share Prices

  • 7. Percent of Firms Reporting Labor Shortages

  • 8. Policy Interest Rate

  • 9. Real Interest Rates

  • 10. Monetary Conditions Index

  • 11. National Savings

  • 12 Investment

  • 13. Debt-Equity Ratios of Non-Financial Corporations

  • 14. Real Effective Exchange Rate

  • 15. Main Federal Tax Revenues

  • 16. Selected Industrial Countries: Tier 1 Capital in 2001

  • Appendices

  • I. Basic Data

  • II. Fund Relations

  • III. Statistical Issues

Main Websites for Swiss Data

Data in this Staff Report reflect information received by April 30, 2003. In most cases, more recent data can be obtained directly from the following internet sources:

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Public Information Notice (PIN) No. 03/66


June 2, 2003

International Monetary Fund

700 19th Street, NW

Washington, D. C. 20431 USA

IMF Concludes 2003 Article IV Consultation with Switzerland

On May 23, 2003, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Switzerland.1

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Statement by Fritz Zurbrügg, Executive Director for Switzerland May 23, 2003

Switzerland: 2003 Article IV Consultation—Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Switzerland
Author: International Monetary Fund