Swiss Exports Plunge as Chemical Sector Derails Trade

Chemical-Pharmaceutical Sector at the Heart of the Downturn

The overall decline was driven primarily by a 12.5% fall in the chemical-pharmaceutical sector, which had set record export levels in 2024. Customs officials described the situation as "distorted" by this steep drop, overshadowing gains in other segments.

Contrasting Performances Among Product Groups

Despite the overall downturn, seven out of eleven product categories recorded increased exports. Notably, jewelry surged by 44%, watches climbed by 2.7%—with watch exports reaching their highest level since August 2024—and machinery and electronics grew by 1.8%, highlighting a mixed trade picture.

Regional Impact and Import Trends

The export decline was most severe in North America, where shipments fell by 18%, largely due to weakness in the U.S. pharmaceutical market. In contrast, exports to Europe and Asia saw only minor drops of 0.6% and 0.3%, respectively. Imports also decreased to CHF18.7 billion, a 6.8% nominal and 1.9% real decline, further affecting the trade balance.

Narrowing Trade Surplus

With exports falling more sharply than imports, Switzerland’s trade surplus contracted to CHF4.3 billion. This shift reflects the challenges faced by the nation’s foreign trade, where impressive gains in some sectors are offset by significant setbacks in others.

Conclusion

The significant plunge in Swiss exports—primarily driven by a drastic decline in the chemical-pharmaceutical sector—has disrupted the nation’s trade balance, despite robust performances in jewelry, watches, and machinery. As Switzerland navigates this complex trade environment, the contrasting trends across different product groups will be key to understanding its economic trajectory in early 2025.