The poverty rate in Switzerland reached its highest level since 2014
The proportion of people living in poverty in Switzerland has hit a record in 2019 and the situation is even worse since the outbreak of COVID-19.
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On February 18, the Swiss Federal Bureau of Statistics released a report showing that the proportion of people living below the poverty line in the country increased by 8.7% in 2019 – the highest level since 2014.
Thus, poverty affected 735,000 people in the year before the COVID-19 acute respiratory infection pandemic reached this 8.5 million population.
Among those who belong poor, 155,000 people are working there income. The rate of poor households in the working population is 4.2%. The statistics made the labor sponsor organization Travail Suisse rate it “truly shocking.”
The report also revealed that 1 in 8 people (12%) said they had difficulty in their work work for live. One in 5 people (nearly 21%) will not be able to manage the surprise expense that is estimated at CHF 2,500 ($ 2,786) per month.
Overall, the standard of living in Switzerland remains among the most expensive in the world. According to the office of statistics, the average stable income is around CHF 50,000 per year.
As in previous years, the people most affected by poverty are foreigners, single households, those who do not continue education after compulsory education and those who are out of work.
The report did not take into account the effects of the pandemic COVID-19 begins in Switzerland in early 2020. Travail Suisse believes the pandemic will aggravate the problem of poverty. Restrictive measures, including shutdowns imposed by the government to prevent the epidemic, have affected various economic sectors.
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Meanwhile, the Swiss government announced that the country had hit a record high budget deficit in 2020 due to the impact of the epidemic of acute respiratory infections COVID-19.
Specifically, the newly released figures show that the budget has a deficit of CHF 15.8 billion (equivalent to $ 17.6 billion).
According to the Swiss Government, the main reason is due to the pandemic economic decline leading to lower budget revenues, while additional budget spending increased to minimize the effects of the epidemic on economy.
Before the outbreak of the COVID-19 pandemic, the Swiss government budget in 2019 was in surplus of CHF 3.6 billion and the budget for 2020 was initially expected to be in surplus CHF 334 million.
However, the economic slowdown caused by the COVID-19 pandemic caused tax revenues to drop 3.4% in 2020, while the federal government had to spend more than CHF 15 billion on disease prevention.
The Swiss government assessed the economic downturn in 2020 is not as serious as the previous forecast. In 2021, the government proposed to parliament eight additional credit packages worth CHF 14.3 billion to support the fight against the epidemic.
The financial deficit is forecasted to reach CHF 20 billion by 2021 and return to equilibrium or be improved over the period 2022-2024./.