Swiss economy still “subdued”
Switzerland's foreign trade was flat in the first six months of the year reflecting the overall state of the economy.
Official figures released on Friday by the Finance Ministry showed imports down by 6.7 per cent between January and June. Exports during the same period were more resilient, dropping just three per cent.
The ministry said most sectors experienced a trade decline, with exports down one-sixth in the worst affected machine and electronics industry.
The figures come just days after Economiesuisse – the Swiss Business Federation – downgraded its growth forecasts for 2002 to just one per cent. In December, the organisation was predicting industry growth of between one and 1.5 per cent for the year.
Part of the downward revision has been blamed on the global economic slowdown, which has hit several key Swiss industries hard.
Fears over the franc
Economiesuisse warns that a major factor suppressing growth is the continuing strength of the Swiss franc, which is undermining export competitiveness.
Industries suffering from lacklustre demand for their products include the chemicals, watches, food, paper, and textiles sectors. However, more worrying are the prospects for the machine, metal and electronics industries.
The federation says further shocks could lie in store, given the Swiss business environment’s vulnerability to further currency shifts.
Positive news for tourism
In another development, economiesuisse has reported positive news for the crucial tourism sector. This looks set to weather the negative consequences of the September 11 terrorist attacks, thanks mainly to a booming domestic market and the national exhibition, Expo.02.
Economiesuisse predicts the stimulus from Swiss taking holidays at home should help the sector recover in the second half of 2002.
It adds that Swiss domestic consumption remains robust and is likely to improve over the next six months.
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