Economics
In a World Drowning in Debt, the Swiss Aren’t Spending Enough
- Switzerland has consistently run annual budget surpluses
- Government reluctant to spend even with low debt costs
This article is for subscribers only.
Switzerland’s thrift, contrasting with neighbors struggling to fix bloated budget deficits, is exposing the country to other longer-term problems.
The country of 8 million runs surpluses every year and its debt ratio is far below a level that would even begin to raise alarm bells. In fact, critics warn that the aversion to leverage risks making life harder than necessary, with wide-ranging economic implications.