| Actual | Previous | Revised | |
| Balance | CHF3.222B | CHF2.743B | CHF2.611B |
Highlights
The trade surplus grew to 3.222 billion Swiss francs in April from 2.611 billion the previous month, on a marginal increase in exports and a decline in imports.
A total of 22.070 billion was exported in April, a 0.1 percent month-on-month increase, while exports fell 3.0 percent in nominal terms to 19.048 billion.
Exports of chemicals and pharmaceutical goods was a drag, having contracted 3.1 percent in April after a 3.9 percent increase in March. Given that the sector makes up roughly half of total exports, a 5.0 percent increase in watch exports and a 5.4 percent gain for metals and metal products was not enough to help overall exports.
Switzerland exported 16.0 percent more to the United States in April than in March when they contracted 16.9 percent. Imports grew as well, but more slowly at 6.4 percent following a 1.6 percent increase in March.
Crude oil imports grew 39.7 percent in April in nominal, or value terms after a 4.5 percent contraction in March. On a volume basis, imports were up 26.0 percent after a far more modest gain of 5.8 percent in March.
With US tariffs having been declared illegal, some semblance of historical trade flows could be returning. Now with the conflict in the Middle East, oil is the new wild card for trade.
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.