- Swissmem, a lobby group for the electrical and mechanical engineering industry
While European neighbours are suffering from Russia's embargo of food imports, Switzerland sees its volume of exported products to Russia increasing, as it has refrained from imposing full sanctions in line the EU. Moreover, increasing demand from Europe and Asia for Switzerland's pharmaceuticals and chemicals as well as precision instruments and watches supported export growth in July. Exports rose 4.5% on an annual basis to 19.26 billion francs. Exports to Europe soared 8%, including a 13.9% increase to Germany, Switzerland's biggest trading partner, the office said. In July, exports of watches rose a nominal 2.2% in July to 2.1 billion francs. Sales to mainland China jumped 49%, the best performance in 30 months, the Federation of the Swiss Watch Industry reported. Imports to Switzerland fell 4.6% in real terms and 3.5% in nominal terms. Thus, the trade surplus widened to 3.98 billion francs in July from a revised 1.41 billion a month earlier. The positive data supported the Swiss Franc against the Dollar, with USD/CHF hitting 0.9119, the European session low.
Europe is Switzerland's main trading partner, as it absorbs almost 60% of Swiss exports. A strong Swiss Franc has made Swiss goods less competitive abroad; however, that effect has been offset by a cap on the value of the Franc that the Swiss National Bank imposed almost three years ago.
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