In a World Drowning in Debt, the Swiss Aren’t Spending Enough

Switzerland’s thrift, contrasting with neighbors struggling to fix bloated budget deficits, is exposing the country to other longer-term problems, Bloomberg News reported. 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. It looks like a model of fiscal prudence in a world drowning in debt. The IMF estimates total global public and private borrowing exceeds $180 trillion, more than twice global GDP. Central banks and others have long fretted about the ability of companies to cover payments and governments straining their coffers to the point of default. Switzerland stands in contrast, with debt-to-GDP ratio of just 40%. Read more

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