Swiss income and wealth have also risen during corona
Published: Thursday, May 30th 2024, 07:50
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The coronavirus crisis has left its mark in many areas. However, the bank accounts of Mr. and Mrs. Swiss are not one of them. Despite the difficult economic situation in 2020, both incomes and assets have continued to grow on average - with cantonal differences.
One of the main reasons for the positive development is the stable Swiss labor market, according to a study published on Thursday by Bank Cler together with the economic research institute BAK Economics. Unemployment only rose from 2.3 to 3.2 percent in the first year of the pandemic.
"Thanks to the extensive support provided by the state, the collapse in disposable income for people in Switzerland was prevented," explains Samuel Meyer, CEO of Bank Cler. The massive use of state short-time work compensation was decisive.
Income increases on average
The study examined income and wealth trends from 2007 to the most recent data for 2020, during which time the average income in Switzerland rose by 12.5 percent to just over CHF 71,000.
However, the average income is often heavily distorted by individual top earners, so it is better to look at the mean or median income if you want to know what a "normal citizen" earns. However, this figure also rose by just under 10 percent or CHF 4800 to around CHF 53,900 between 2007 and 2020.
The income distribution within the population is also interesting. For example, the top 10 percent of households in all cantons earned more than CHF 100,000, while the average income of the top 10 percent was more than CHF 131,400. Meanwhile, the bottom half of households earned less than 53,900 francs.
Different developments in the cantons
As is so often the case, however, developments varied greatly from canton to canton. Valais, for example, probably benefited from a combination of government support measures and domestic tourism, the bank explains further. This is because incomes rose most significantly there in the coronavirus year and from 2019 to 2020 by 5.3% to CHF 54,100. By contrast, the cantons of Schwyz (-6.0%) and Nidwalden (-5.2%) saw the sharpest fall in income.
Nevertheless, these two central Swiss cantons are still in second and third place in the ranking of Switzerland's highest average incomes behind Zug with CHF 115,300. In 2020, the average income in the canton of Schwyz was CHF 96,200 and in Nidwalden CHF 85,400. "Unsurprisingly", the structurally weak cantons of Jura (54,700) and Valais (54,100) were at the bottom of the rankings.
More millionaires
Wealth increased even more significantly than income between 2007 and 2020. Private wealth increased by 60% to a total of CHF 5061 billion during the period under review, which corresponds to around CHF 1.31 million per household. Real estate assets in particular rose sharply by 78% to CHF 2,225 billion.
The number of millionaires also continued to increase, thanks to rising share prices and real estate prices. During this period, the number of wealthy millionaires in Switzerland climbed by 72% to over 374,000 households. In the coronavirus year 2020 alone, 20,000 millionaires were added. Most millionaires live in the canton of Zug (just under 15%), followed by Schwyz (just under 14%) and Appenzell-Innerrhoden (just over 12%).
The total wealth of millionaires has also risen sharply since 2007 - by over 90 percent to around CHF 1,600 billion. The average wealth per millionaire has risen by 12.2 percent.
©Keystone/SDA
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