Switzerland: Large steps towards the EU in 2001

In Switzerland, the rapid economic recovery that began in 1999 continued in 2000. Real GDP showed a likely expansion of 3½%, unemployment fell to nearly 2%, and inflation, at an annual rate of 1¾%, was quite moderate. In 2001 a general slowdown in economic growth is expected. Real GDP should increase by about 2½% and the unemployment rate will stay at nearly 2%. For 2002, GDP growth of 2¼% is forecast. At the beginning of the year, the Seven Point Agreement with the EU came into effect, marking a major step towards integration with the Union. The agreement will bring advantages to the Swiss economy, which already now does two thirds of its import and export transactions with the EU.