Switzerland - Andy Walsh

Switzerland has one of the highest GDP per capacity rankings in the world. Although not a member of the EU, this European country has been successful in every factor of production to some extent. The Swiss labor force is currently very strong. Boasting a very high literacy and employment rate (qualitative) and a large number of workers in their mid-twenties to late thirties (quantitative) as seen in figure 1.1.  

However, despite a highly educated population, a quantitative change in the labor force will soon occur. Currently, the large group of Swiss workers nearing retirement has a strong labor force behind them to continue to generate national revenue. However, the opposite is true for the current 25-40-year-olds. As they reach the age of retirement, the amount of workers in the labor force drastically decreases, causing a dangerous economic situation for the country that will make GDP growth far more challenging. This drop in population would cause the AS/LRAS curve to shift to the left because of a quantitative loss in the labor factor of production. 

Despite this challenge, Switzerland is strong when it comes to investment. The Swiss economy has maintained high levels of investment and production even though COVID. Perhaps more importantly, they have kept public debt at a very low level compared to the surrounding EU countries. This is a qualitative change in investment that would shift Switzerland’s AS/LRAS curve to the right due to more disposable income and increased consumer confidence. Switzerland also benefits greatly from exporting services and as the pandemic comes to an end, the Swiss GDP will continue to increase. 



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