2020.04.2108:24:00UTC+00Swiss Exports Fall For Second Month

Switzerland's exports declined for a second straight month and at a faster pace in March, mainly due to massive fall in shipments of machinery and electronics and watches, that offset the strong demand for chemical and pharmaceutical products amid the coronavirus pandemic, data from the Federal Customs Administration showed on Tuesday.

Exports decreased by a real 4.0 percent month-on-month in March, following a 3.1 percent fall in February. Shipments of machinery and electronics slumped 18 percent, while demand for chemical and pharmaceutical products grew 6.6 percent.

Watch exports fell for a second straight month, down 13.4 percent from February.

Imports declined 6.7 percent monthly in March, following a 0.4 percent fall in the previous month.

The fall was driven by a 17.9 percent drop in imports of vehicles. This in turn was led by a massive 62.9 percent decline in demand for the aerospace imports.

In nominal terms, exports increased 2.2 percent in March and imports fell 3.9 percent.

On a quarterly basis, exports declined by a real 0.6 percent in the first quarter, following a 2.6 percent decrease in the fourth quarter.

Imports fell 3.2 percent quarter-on-quarter in the first quarter, following a 3.1 percent decrease in the previous fourth months.

In nominal terms, exports rose 1.0 percent in the first quarter and imports fell 2.8 percent.

The trade surplus increased to CHF 8.342 billion in the first quarter from CHF 6.328 billion in the previous quarter.

Exports increased due to the significant growth of chemical-pharmaceuticals in March and in the first quarter, the agency said.

The increase in this branch is mainly due to the Covid-19 outbreak in the environment of the global economic situation and this covered the mostly declining development in the other branches of industry, the agency reported.

According to the Federation of the Swiss Watch Industry, watch exports dropped 21.9 percent year-on-year in March.

The 43.1 percent fall in volumes is more representative, on average, of the real state of the watch market, the group said.

The industry body expects watch exports to fall again in April due to the weak demand in main markets as most are under lock-down to slow the spread of the coronavirus pandemic.