Switzerland’s economy failed to expand in the second quarter of 2023, recording zero growth, according to data from the State Secretariat for Economic Affairs (SECO). In addition, economists are now lowering their growth forecasts for the year, reported SRF. The economic slowdown is being driven by a number of economic headwinds. Slowing economies in Germany […]
Why Switzerland’s economy is solid despite a strong franc
The most recent Economist Big Mac index places Switzerland at the top with the world’s most expensive burgers. This tongue in cheek analysis compares the relative strength of national currencies by comparing the price of a Big Mac around the world and it suggests that the Swiss franc is 42.4% overvalued. The only other currency […]
Swiss 2014 exports break new record
With all the gloom that has descended on Switzerland after the sharp rise in its currency, it is nice to be reminded of its economic strength. Goods exports excluding services for 2014 grew 3.5% to reach a record 208 billion francs, surpassing 2008’s record of 206 billion. To give this context, Switzerland’s goods exports alone […]
Big losses for the Swiss National Bank
After the recent increase in value of the Swiss franc, foreign currencies held by the Swiss National Bank (SNB) will now be worth less in Swiss franc terms. In the case of Euros around 17% less than before. This decline in value will drive a loss. It is not possible to calculate the actual figure, however […]
The Swiss deflation puzzle
There is currently much talk of the dangers of deflation and the specter of its imminent arrival in the Eurozone. The Economist newspaper proclaimed last week that if deflation were to set in, the single currency would be in peril. Economists assume that deflation, or falling prices, reduce consumption as consumers defer spending in the […]
