...Credit context and assumptions Base-case expectations We expect the Swiss economy will recover from the recession in 2021. + Swiss real GDP will rise by 3.5% in 2021 in our forecast and Solothurn's economy should grow roughly in line with that number. + The canton of Solothurn benefits from increased payouts from the Swiss National Bank (SNB) and higher equalization payments in 2021, mitigating the negative impact of the COVID-19 pandemic. + The canton's prudent management will continue to implement budgetary measures to limit pressure on debt and liquidity if needed. Solothurn's high liquidity reserves will cushion budgetary challenges. + We forecast weaker budgetary performance in 2021-2023, despite an economic rebound, because of the systematic delay in tax base impact from the pandemic for all Swiss cantons, as well as impact from the corporate tax reform. + We still assume that Solothurn will be able to reduce its tax-supported debt burden in 2020, thanks to high liquidity reserves....
