Covid-19 is forecast to hit personal incomes by a total of around CHF 15 billion both this year and in 2021, according to the Basel-based research institute BAK Economics, reported Le Matin.
Spread across Switzerland’s 8.6 million residents this comes out at around CHF 1,740 per person and CHF 2,830 per worker.
BAK Economics expects significant declines in personal revenue in the form of lost salaries, lost freelance business and lower investment returns over the next two years because the economic impacts of the SARS-CoV-2 virus.
The institute expects incomes to fall by around 2.5%. Those working in certain sectors will be hit harder. The hotel, tourism and passenger transport sectors will be hit the hardest. Those working in export sectors, including finance, will be hit too, given the global slowdown, according to the report.
BAK forecasts the slowdown will extend into 2021 and emphasised the economic importance of avoiding a second wave of infections.