Swiss exports fell 4.1 percent in August compared to 2010, hit by the strength of the franc, customs authorities said on Tuesday.

"/> Swiss exports fell 4.1 percent in August compared to 2010, hit by the strength of the franc, customs authorities said on Tuesday.

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Swiss exports fall on franc’s strength

Swiss exports fell 4.1 percent in August compared to 2010, hit by the strength of the franc, customs authorities said on Tuesday.

Swiss exports fall on franc's strength
Michael Faes (file)

“Exports fell by 4.1 percent to 13.9 billion francs ($15.7 billion),” it said in a press release.

“This evolution is due to the strength of the franc,” the customs authorities said.

Amid the public debt turmoil engulfing the European Union, investors have massively bought into the franc, sending it to record highs against the euro and threatening the country’s export-led economy, leading the central bank to put a floor on the euro’s value against the Swiss franc in early September.

However, the country still managed to have a trade surplus of 808 million francs in August, the customs authorities said, a figure 56.4 percent higher compared to the same month in 2010.

It added that all export sectors had been negatively hit, except for the watchmaking industry.

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ECONOMY

Swiss central bank announces big rate hike in inflation fight

The Swiss National Bank (SNB) raises the key interest rate by 0.75 percentage points, putting it back in positive territory at 0.5 percent.

Swiss central bank announces big rate hike in inflation fight

“The rate change applies from tomorrow, September 23rd 2022”, SNB said in a press release on Thursday.

It added that “inflation [in Switzerland] rose to 3.5 percent in August and is likely to remain at an elevated level for the time being”.

The latest rise in inflation is principally due to higher prices for goods, especially energy and food, according to the bank.

The SNB’s forecast for the evolution of inflation is, however, positive.

It forecasts that the rate will drop to 2.4 percent in 2023 and and 1.7 percent for 2024.

“Without today’s SNB policy rate increase, the inflation forecast would be significantly higher”, the bank said.

In mid-June, the SNB tightened interest rates by half a percentage point for the first time in 15  years. Since then, inflation in Switzerland has continued to rise. For August 2022, the statisticians reported inflation of 3.5 percent, after 3.4 percent in June and July.

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