OECD's annual survey of the Swiss economy. Part I looks at forces which have kept the Swiss economy in recession for the second consecutive year. In Part II, the current slump is compared with preceding periods of cyclical downturn so as to find out what made the economy recover from previous recessions and whether such conditions are currently in place. Short-term projections are included. Part III first analyzes the conduct of monetary policy and then looks at structural adjustment. Part IV is devoted to an analysis of developments in the labor market in recent years. Policy recommendations are presented in Part V.