Swiss Exports Hit New Record Level in 2021, USA becomes the most important trading partner

Record Exports

                In 2020 the COVID-19 pandemic caused a lot of turmoil for Swiss economy. It reported lowest GDP since 70’s. Additionally, export, which is the main factor driving the economic growth, was hit by too high exchange rate of CHF. The Swiss franc was appreciating a lot with EUR/CHF hitting some new lows. The rate was influenced by the global pandemic, lockdowns and lack of risky mood among investors – they were much eager to buy Swiss francs as a safe-haven asset than other currencies, including euro.  All these contributed to the fact that exports number were low. But it looks as if foreign trade has bounced back quite nicely in 2021. Numbers shows a raise of 15.2%, hitting a record high of CHF 260 billion! This sharp surge in exports caused high level of trade surplus of the country – at CHF 58.7 billion. Even though imports were also rising, pushed up by higher chemical imports and energy prices, they managed to be offset by record levels of exports. Additionally, last year United States become the top buyer of Swiss products, replacing for the first time since 1954 Germany, which used to be the most important buyer for decades.

Immunological Products

                When it comes to industries, the highest export numbers were reported for immunological products – no wonder in times of the global pandemic. This branch has driven the whole surge in exports, as they accounted for a quarter of total increase. Also, there was observed an impressive rise in export of watches, product which Switzerland is famous for since decades. Totally shipments of watches went up by a third, hitting CHF 5.3 billion, which is a new annual high for this sector. But generally, all export sectors noted higher volumes last year when comparing to very low shipments in 2020. In all three main export areas, which are Europe, North America and Asia, more goods were sold by Switzerland. To Europe deliveries went up by 18.1%, to North America by 17% and to Asia by 9%, triggered mainly by a sharp climb in export to Hong Kong – plus 23%. Also, there were more goods sold to Japan, China and Singapore.

KOF Indicator for January

                In other economic data-related news, KOF leading indicator index for January was at 107.8 versus 107 previously, revised to 107.2. This slight improvement of economic situation in the country may signalize some stabilization coming though with difficult situation now between Russia and Ukraine, and the Omicron version of the COVID-19 still causing lot of havoc on the continent, sending millions of people to quarantine or self-isolation, the trend might not be too strong yet.