| Actual | Previous | Revised | |
| Balance | CHF5.638B | CHF3.222B | CHF3.283B |
Highlights
The trade surplus increased to CHF5.638 billion in May from CHF3.283 led by a strong increase in exports, particularly for machinery and electronics and pharmaceutical exports.
In nominal terms, exports rose 13.4 percent to CHF25.423 billion, while imports rose 3.4 percent to CHF19.875 billion. Chemical and pharmaceutical goods recorded exports of CHF13.945 billion in May, an increase of 25.7 percent from April. Machinery exports rose 11.0 percent to CHF1.674 billion.
The trade surplus with the United States rose to CHF4.069 billion from CHF3.649 billion as exports to the US increased 11.5 percent, while imports rose 10.0 percent.
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.