This report does not constitute a rating action. Overview Credit context and assumptions Base-case expectations The strong local presence of the pharmaceutical industry continues to provide the Canton of Basel-City (Basel-City) with an extremely dynamic and robust tax base. Much better-than-budgeted tax collection should enable the canton to post strong results again in 2023, with broadly balanced accounts after capital expenditure (capex). Switzerland appears to be navigating the current economic challenges better than most of its neighbors, with relatively resilient economic growth, and far lower inflation. Basel-City?s budget should be well prepared to absorb the tax cuts, which are effective from 2024, and re-invest the anticipated substantial proceeds from the implementation of the Organization for Economic Co-operation and Development (OECD)
