| Actual | Previous | Revised | |
| Balance | CHF2.743B | CHF4.445B | CHF4.324B |
Highlights
The trade surplus contracted to 2.743 billion Swiss francs in March from a revised 4.324 billion the month before as imports increased while exports remained relatively steady.
A total of 19.612 billion francs worth of goods entered the country in March, while 22.355 billion was sent abroad compared to respective results of 17.818 billion and 22.142 billion the month before. Imports were up 10.1 percent in nominal terms in March, with the largest gain coming in chemical and pharmaceutical products which increased 36.1 percent.
Exports rose a more muted 1.0 percent in March after a 2.8 percent decline in February. Chemical and pharma exports rose 3.6 percent compared to a 2.7 percent contraction the month before. Watch exports, another bellwether sector for the Swiss economy fell 5.4 percent in March after a 0.8 percent gain the month before.
During the first three months of the year, exports reached their lowest level since the third quarter of 2021. Pharmaceutical and chemical products played a key role here, having fallen 8.1 percent from the fourth quarter. Watch exports helped mitigate a larger overall decline, as they were up 2.1 percent quarter-on-quarter.
Trade with the United States saw a 15.9 percent drop in exports to 3.098 billion francs, while imports were unchanged at 970 million, leaving a surplus of 2.128 billion. In February, the surplus was 2.693 billion.
While there is volatility around trade figures, including in the case of Switzerland, chemical and pharma, today's results need to be taken seriously, particularly since March is the first full month of the conflict in the Middle East. Already there are anecdotal stories of supply chain constraints where higher oil prices are crimping activity. This is most pronounced in heavily oil dependent Asia, but as the conflict drags on, the pain will spread.
Definition
The merchandise trade balance measures the difference between the total value of Swiss merchandise exports and imports. The focus is on the balance of trade in goods, excluding precious metals, gemstones, works of art and antiques. This is provided in unadjusted and seasonally adjusted measures for cash and volume.
Description
Changes in the level of imports and exports along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect the value of the Swiss franc in the foreign exchange market. Switzerland's major trading partners include Germany, France, Italy and the United States. While Switzerland still exports large amounts of traditional products such as chocolate and watches, more than half of Swiss exports are in mechanical and electrical engineering and chemicals today. A positive trade balance indicates a trade surplus while a negative balance represents a trade deficit. Trade surpluses indicate that foreigners are buying more Swiss goods, which are typically paid for in Swiss Francs. This translates into greater demand for the currency and upward pressure on the value of the Franc. However, if the balance is a deficit, Swiss consumers are buying goods from trading partners which translates into higher demand for foreign currencies placing downward pressure on the value of the Franc.