Exports on the increase Switzerland: Free trade agreements increase exports
Swiss SMBs are looking positively towards the future. The current survey being carried out by Switzerland Global Enterprise (S-GE) states that around half of all SMBs recorded increases in exports in the 3rd quarter.
Expo-focused Swiss SMBs are continuing to look positively to the future. The current survey being carried out by Switzerland Global Enterprise (S-GE) for export mood states that around half of all SMBs recorded increases in exports in the 3rd quarter. The Credit Suisse export barometer is now only slightly lower than at the highest point in the last ten years. The results suggest solid export growth for the Swiss economy. The increase in this growth stimulus is being driven from Europe and the USA.
Over the past 25 years, Switzerland has continuously expanded its network of free trade agreements (FTA). With clearly positive effects: Every time an FTA comes into force, export growth increases, on average, more than before. Over one-fifth of all exports are now in FTA partner countries. "The concluding free trade agreements regularly has a positive effect on export growth rates. It is not only a good selection of partner countries that is responsible for these effects. The positive effect of a reduction in trade barriers has also been demonstrated. SMBs, which do not yet use free trade agreements of have difficulties with them, can get advised by S-GE. We have the necessary know-how and network and will be able to give you the support you need", says Alberto Silini, head of consulting at Switzerland Global Enterprise.
Credit Suisse export barometer
The Credit Suisse export barometer, which represents foreign demand for Swiss products, currently has 2.3 points. This level is now only slightly lower than at the highest point in the last ten years. This value is expected to show solid export growth for the Swiss economy. This positive development is mainly due to the two largest export markets, Germany and the USA. Although the US dollar had declined by around 5.5 percent against the Swiss franc since the beginning of 2017, it was driving exports into the USA in the first half of the year. However, a positive outlook in the US industry is likely to prevail and boost exports. In Germany on the other hand, industrial production is growing dynamically, in addition to private consumption. Furthermore, the euro also showed slight signs of appreciation against the Swiss franc in the first half of the year, which supported exporting Swiss SMBs. "In the second half of 2017, the positive situation in the European and American industrial sector is likely to lead to a dynamic demand for Swiss companies' export goods," adds Sascha Jucker, an economist at Credit Suisse.