According to a survey, 27.5% of the Swiss expect a deterioration in their financial situation in 2023. Inflation, rents and insurance contributions cause concern
For the first time since 2017, the Swiss are so worried about their financial situation. According to a survey by the Innofact Institute for the Zurich-based financial portal Comparis.ch, 27.5% of respondents believe that their financial situation will worsen in 2023. In a corresponding survey for 2022, this percentage was only 15 .9%.
As is the case in other countries, the accuracy mainly hits low-wage earners. For monthly incomes up to 4,000 Swiss francs (4,055 euros) the percentage of those who expect a deterioration in their finances reaches 41.8%. For incomes between 4,000-8,000 francs the rate is 28.1%, while for incomes above 8,000 francs it is limited to 21%. Already today, 13% of low-wage earners state that they “don’t make ends meet”, while only 1.1% of those earning over 8,000 francs claim the same. “Especially for the lowest incomes, 2023 will be a difficult year,” points out Michael Kuhn, an analyst at Comparis.
Inflation below 3%
Of course, when the Swiss talk about the problem of inflation, they don’t mean the same thing as the rest of the Europeans. In August 2022, inflation in the Alpine country had reached 3.5%, the highest rate in 30 years, but well below the eurozone average. The increase was mainly attributed to imports (+6.7% on an annual basis), while domestic goods appreciated by only 1.6%. Since then, inflation has tended to decrease, in fact it fell below 3% again in December. For 2023, the Swiss National Bank (SNB) forecasts inflation of 2.4%, while Credit Suisse speaks of 1.8%. But UBS warns that the Swiss are “suffering the biggest loss of purchasing power in 80 years”, as wage increases agreed in January 2022 were no more than 1.1%.
Today, in the Comparis survey 71.2% state that “inflation has serious to very serious consequences for the family budget”. Comparis analysts point out that in 2022 particularly significant increases have been recorded in heating tariffs (almost 50%), air tickets (+23.8%) and fuel (+10.8%). Since May 2005 the cost of heating has increased by 205%.
Other products, however, are becoming cheaper, if we look at the medium-term evolution of prices. According to earlier Compartis research, since 2000 the prices of medicines in Switzerland have fallen by 43.2%, small electrical appliances by 35%, telecommunications by 29.3%. However, two permanent “accuracy factors” remain: rents and insurance contributions, which will even increase from January 2023. For the minimum insurance coverage, a Swiss is asked to pay 4,882 francs per year, compared to 4,574 in 2022.
Simple economy recipes
With this data, more and more Swiss are limiting their daily expenses. 64.4% of respondents say they look for deals, while 46.7% often resort to discount supermarkets. In fact, 23.8% go abroad for the week’s shopping, taking advantage of the freedoms of the “Schengen zone”. It makes sense, as Michael Kuhn says: “Those who live in border areas can take advantage of the opportunity for cheaper shopping more easily than those who live in central Switzerland,” he says. “And this, despite the fact that inflation there is at rates much higher than in Switzerland itself.”
“Supermarket tourism” records a record rate in Italian-speaking Switzerland, where at least one in two (52.9%) crosses the border and goes shopping in …Italy. In French-speaking regions the corresponding percentage reaches 26.9%, while in German-speaking Switzerland it does not exceed 20.9%. Perhaps because the well-known German discount supermarket chains now have a dynamic presence in the Swiss market as well.
DW – Giannis Papadimitriou
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I am Janice Wiggins, and I am an author at News Bulletin 247, and I mostly cover economy news. I have a lot of experience in this field, and I know how to get the information that people need. I am a very reliable source, and I always make sure that my readers can trust me.