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OECD upbeat on Swiss economy

The Organisation for Economic Co-operation and Development in Paris has issued a positive report about the Swiss economy, forecasting growth of 2.8 per cent this year and 2.6 per cent in 2001.

The OECD says economic recovery is at an early stage, inflation is low and monetary settings should take account of the existing slack in the economy.

However, in its latest Economic Outlook, the OECD says stronger efforts should be made to increase competition in the sheltered sectors of the economy to raise productivity and make room for higher growth.

The OECD says the economic upswing is projected to be broad-based.

"Household spending is likely to remain robust given improving real disposable incomes and high consumer confidence, underpinned by favourable developments in the labour market," the report says.

It adds that exports are being boosted by accelerating export market growth and gains in price competitiveness.

The report warns that because of high import penetration, GDP growth may not exceed 2.75 per cent over the next two years.

swissinfo with agencies