Switzerland is one of the rare western European countries that has managed to grow over the past few years, thanks primarily to solid domestic demand (Panel A). Household consumption growth has been supported by strong immigration, sustained consumer confidence and rising real wages (Panels B and C). Dynamic demography and historically low interest rates are boosting housing construction. Yet the unemployment rate has been edging up since mid-2011 (Panel D). Strong population growth, averaging around 1% per annum in recent years, has meant that in per capita terms, growth has been less impressive.