(MENAFN – Swissinfo) Low-income households in Switzerland have been hit hard by the coronavirus crisis, while those with high incomes are still managing relatively well, according to a large-scale survey of people living in the country.
This content is published on 23 February 2021-12: 18 23 February 2021-12: 18 swissinfo.ch/jc
Those with a household income of below CHF4,000 ($ 4,480) saw their income fall by an average of 20% since the start of the pandemic, while household income with a monthly income of more than CHF16,000 fell 8%, according to a study by KOF link Swiss Economic InstituteExternal is released on Tuesday.
High-income households cut their spending more (about 16%) than low-income ones (12%), but for different reasons. Richer households cut their spending primarily because of their fewer needs and fewer opportunities to shop. While this reason also applies to low-income households, 11% of them say they cut expenses because they have less money.
Increasing inequality is also reflected in the level of household savings one year after the outbreak of the pandemic, said KOF. Although saving fell significantly among low-income households, it increased among the top half of income households. About 39% of those with a monthly household income below CHF4,000 even said they were forced to withdraw their savings to cover current expenses.
The study found that the mental health of low-income people has also continued to deteriorate since the pandemic outbreak last spring. People affected by unemployment are often reported to be in poor health, he said.
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