At first glance, the figures recently published by the Federal Office for Customs and Border Security are pleasing. Last year, both exports and imports once more broke records. Exports thus increased by 7.2% compared to 2021, to reach 278.6 billion francs. As for imports, they also reached a record level in 2022, with an increase of 16.8%. Looking at the price-adjusted figures, however, exports stagnated over the year as a whole and imports increased only slightly. In addition, following three good quarters, trade was down in both directions at the end of the year.
DIVERSIFIED EXCHANGES WORLDWIDE
As far as exports are concerned, the Swiss economy benefits from great diversification. Almost all marketed product groups recorded an increase. 2022 has been a very successful year, especially for watches and jewelry. Compared to the previous year, these products grew by 11.4% and 14.8% respectively. Chemicals and pharmaceuticals are once once more the main contributors to the increase in exports, with a share of 3.7 billion francs.
Exporting companies were also well positioned geographically in 2022. They exported more than the previous year to the three main markets. The strongest growth, 8.6%, was recorded in favor of Asia, followed by North America, with 7.8%, and Europe, with 6.3%. As far as the EU is concerned, it is above all exports to Slovenia and Italy that have increased strongly. Japan and the United States were the main drivers of growth in the other two markets. For the second year in a row, the United States is Switzerland’s main export market, with a value of some 50.7 billion.
On the import side, the development was marked by the sharp rise in energy prices. Energy imports doubled to total 12.7 billion francs. That said, many other commodity groups, such as chemicals and pharmaceuticals, metals, and jewelry, also saw double-digit and more growth. Many imported products come from Europe, particularly France, Germany and Italy. As far as Asia is concerned, the growth is mainly due to the increase in imports from China (+13.5%). But the biggest increase in imports took place with North America (22%).
WHAT TO DO TO BE READY FOR THE FUTURE?
In 2020, Swiss foreign trade was massively affected by the consequences of the covid pandemic. The current economic situation remains difficult even if a positive evolution is emerging. The war in Ukraine, uncertainties surrounding energy supplies, supply difficulties, high logistics costs, rising raw material costs, rising protectionism and a slowing global economy are weighing heavily on the Swiss foreign economy.
Politics is right to continue to improve the economic framework conditions. In the view of the economy, the following points are essential: if Switzerland wishes to secure bilateral relations with the EU in the long term, it must deal with it quickly and make substantial progress. It must also continue to develop the network of free trade agreements in order to be able to access new growth markets with a view to diversification. The elimination of industrial tariffs is to be implemented in January 2024, as planned. And digitization is decisive in reducing administrative burdens for companies. State control of investments would be counter-productive for the economy.