According to the annual foreign trade statistics released on Thursday, Switzerland experienced a historic decline in both exports (-7.1% to CHF225.1 billion) and imports (-11.2% to CHF182.1 billion) in 2020. The second quarter saw trading activity plummet at an unprecedented pace.
This was the biggest annual drop in trade since 2009, sending Switzerland back to 2017 levels.
All export sectors were affected except for chemical and pharmaceutical products which saw a 1.6% increase in exports (CHF1.8 billion). Jewellery and watches accounted for 50% of the decline. Sales fell by a third (-4 billion) and a fifth (-4.7 billion) for the two sectors, respectively.
In relative terms, shipments to Asia fell most (8.8%) but this varied across the region. While exports to Hong Kong and Japan decreased by a total of CHF3 billion, those to China grew by CHF1.3 billion to reach a new high of CHF 14.7 billion. This was largely thanks to chemical and pharmaceutical products, and to some extent the watch industry.
Exports to Europe decreased by 6.2%, or CHF 8.1 billion. The drop in exports to France was exceptionally sharp, pushing levels back to their lowest since 2000. Exports to North America shrank by 6.1%.
The decline in imports was mostly attributed to a plunge in imports of jewellery, particularly gold for smelting from the United Arab Emirates. Imports of textiles increased, especially protective clothing and masks. Regionally, imports from the US fell by 16%, from Europe by 11.2%, and Asia 9.9%.
Worries for watch industry
The entire Swiss watch industry experienced a severe slump because of the pandemic, the industry association FH reported Thursday. The value of Swiss watch exports dropped to CHF17 billion in 2020 – a decline of almost 22% compared to 2019.
This is comparable to the fall recorded in 2009 (-22.3%) after the financial crisis. The second quarter of 2020 notably saw exports drop by 61.6%. Things started to improve in the second part of the year thanks largely to demand in China.
Swiss watchmaker Swatch was hit particularly hard by the pandemic. On Thursday, it announced its first negative annual figures since its founding in 1980. It recorded a net loss of CHF53 million as sales dropped by one third to CHF5.6 billion. Last year it posted a profit of CHF748 million. The company was particularly affected by the closure of retail stores and travel restrictions.
University students in Switzerland join Gaza protest wave
This content was published on
Pro-Palestinian activists occupied university buildings in Lausanne, Geneva and Zurich on Tuesday, widening the protest movement in the Alpine nation.
TradeXBank to resume full operations after Sberbank Switzerland taken off sanctions list
This content was published on
TradeXBank, the former Swiss branch of Russia’s Sberbank, will be able to resume its dollar-denominated activities from the second half of this year.
Geneva decides not to remove controversial memorials
This content was published on
The city of Geneva has presented an action plan regarding a series of controversial local statues and monuments of historical figures linked to racism, colonialism or slavery.
University of Lausanne calls for end to pro-Palestine sit-in
This content was published on
The pro-Palestinian occupation continues at the University of Lausanne (UNIL). On Monday evening, a group of students refused to agree to the deadline set by the rectorate.
Ukraine peace conference should include Russia, says Chinese ambassador
This content was published on
China supports a peace conference on the Ukraine war that would see equal participation of all parties, says Chinese Ambassador to Russia Zhang Hanhui.
This content was published on
A majority of Swiss citizens have open attitudes towards various infertility treatments, including even egg donation, which is currently prohibited.
Reports of Swiss cyber fraud almost doubled in six months
This content was published on
The head of the new Federal Office for Cybersecurity (FOC), Florian Schütz, has presented a new strategy after just over four months in office.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Economic outlook for Switzerland in 2021
This content was published on
The pandemic has shaken up the Swiss economy, but affected sectors differently. What future for Switzerland as a business and research location?
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.