-Glenn Stevens, RBA Governor
Swiss exports, which accounts for around 70% of the nation's economic output, rose to a record high in five years last year amid stronger demand for pharmaceuticals and chemicals. Exports rose a 2.1% on year in December to 15.776 billion Swiss francs in real terms and adjusted for inflation, while on a nominal basis, exports jumped 7.2%, according to the Customs Office. The Swiss Trade surplus narrowed to 1.52 billion francs in December down from 3.8 billion francs in the preceding months. Exports for 2014 soared 3.5%, also in nominal terms, reaching a record 208.3 billion francs. The trade in pharmaceutical and chemical products, which accounts for 85.3 billion Swiss francs or 41% of all exports, surged 5% in 2014 while watches continued their increase in sales by 1.9%. Over half of all Swiss exports went to its main trading partner, Europe, recording a growth of 3% over 2014, while exports to Asia saw the same growth. Strengthening economic conditions in the US saw exports to the market jump 10% in 2014 to a record high of 25.9 billion francs. However, given the recent unexpected move from the Swiss National Bank, exports will be hit by a rapid appreciation of the Swiss Franc immediately after the central bank abandoned its currency cap. The price of Swiss goods abroad has increased by around 20% since then. Moreover, economists paint a gloomy outlook for Switzerland's economy, with the unemployment rate, which is currently at 3.4%, rising in the coming months.
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