Flux de publication de la direction générale du Trésor - High-price-levelsFluxArticlesTag-High-price-levelsCopyright 20262026-01-22T00:00:00+01:00/favicon.pngDirection générale du Trésorhttps://localhost/sitepublic/contact@dgtresor.gouv.fr9722f379-e6a1-46f3-8a48-55200318f0a1

Switzerland is roughly 60% more expensive than its neighbouring countries. Consumer prices – particularly for services – are more affected by this than investment prices. This high-price island reveals a two-sided economy: very productive exporting sectors with high wages, and a domestic sector forced to bring itself up to the level of the former, raising prices in the long term. This model continues to be accepted by the Swiss as it offers targeted protection (in agriculture) and high wages.

2026-01-22T00:00:00+01:00<p>Switzerland has a reputation for being a particularly expensive country. The GDP price index is roughly 60% higher than the European Union (EU) average, creating what is known as a &ldquo;high-price island&rdquo;. This high cost of living affects consumption more than investment, and, within consumption, affects services more than goods.&nbsp;</p> <p>The high-price island was not caused by recent inflation but rather structural factors dating back to the 1970s. It goes hand in hand with wages that are approximately the double of those in neighbouring countries. Above all, high price levels in Switzerland reveal a dichotomy in its economy.</p> <p>While one section of the Swiss economy is heavily outward-facing, and its very high level of productivity has resulted in high wages, another section is focused on the domestic market, particularly the service sector, where there is little competition. To match the high wages in the competitive tradable sector, the less productive domestic sector has to raise its wages, resulting in a rise in the overall prices.&nbsp;</p> <p>The Swiss model openly prioritises producers over consumers with an eye to promoting Switzerland&rsquo;s economic and industrial position. The result is that certain sections of the economy are relatively closed off, with high levels of agricultural protectionism and a less demanding competition policy than the one underpinning the EU.&nbsp;&nbsp;</p> <p>High income levels allow most of the Swiss population to benefit from very strong purchasing power. While Switzerland is certainly a high-price island, it is first and foremost an island of prosperity, driven by the success of its exports. Paradoxically, there is a lingering doubt as to whether this model is sustainable (i) without the continued support of targeted protection schemes and (ii) lower domestic competition.&nbsp;</p> <p>&nbsp;</p> <p>&nbsp;</p> <p style="text-align: center;"><img class="marge" src="/Articles/9722f379-e6a1-46f3-8a48-55200318f0a1/images/aeff4624-8934-4ecb-81ca-963bbfafc1dd" alt="Visuel TE-379rn" /></p>