Switzerland Warns of Significant Rise in Debt Due to Pandemic
(Bloomberg) -- The Swiss government is bracing for a rise in indebtedness due to the pandemic, with a deficit of 3.5% of output this year.
Officials in Bern said on Tuesday the shutdown to control the second coronavirus wave would likely cost the government 23 billion francs ($25 billion), and tax revenues were likely to decline.
Countries across the world have been forced to spend heavily in the face of the crisis, prompting warnings about debt sustainability.
The state of Switzerland’s finances still is much better than in neighboring France or Italy. Its debt ratio is expected to hit 30.2% of gross domestic product, low by international standards, the government said. Debt in the euro area as a whole is already close to 100% of GDP.
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