Swiss trade surplus grew, investment income fell
Zurich, Switzerland (GenevaLunch) - Switzerland’s net investment earnings are negative for the first time since the Swiss National Bank (SNB) began compiling statistics in 1947, ironically, as a record trade surplus was posted for 2008. Losses from Swiss banks’ foreign subsidiaries caused 2008 income from direct investment abroad to fall sharply, from CHF60 to 8 billion. Meanwhile, the trade surplus for 2008 widened by CHF5b to CHF19b, as exports grew and imports fell. The impact of the global economic crisis affected trade figures only in the fourth quarter, after three quarters of strong growth.
Net investment earnings show the earnings from Swiss investments abroad, minus payments to foreigners on their investments in Switzerland. This is historically a large surplus because of the earnings of Swiss multinationals, including banks. Their earnings have been declining, but the bailout solutions for bank UBS meant yet more money flowed out of Switzerland.
Swiss foreign trade, climbing down
Bern, Switzerland (GenevaLunch) - Swiss foreign trade plummeted 16 percent in the first half of the year, according to figures published 21 July by the Swiss Federal Customs Administration (SFCA). Both import and export figures dropped to levels last seen in 2006, and the second quarter figures were much worse than those for the first quarter of the year. The fall in exports is the worst six month period decline recorded.
The balance of trade was CHF9 billion, down 10 percent over a year, a fall explained by an unusual, massive import of gold jewelry for remelting, from Vietnam.
Lucerne's bridge, reputed to be the most photographed site in Switzerland
Neuchatel, Switzerland (GenevaLunch) – Foreign tourists continued to visit Switzerland at a strong rate in 2008, despite the start of the economic crisis, spending CHF15.6 billion, up by more than CHF1 million over 2007. The increase of 6.7 percent was offset, for the balance of payments, by a 2.3 percent drop in the amount Swiss tourists spent abroad. Overall, the trade balance was positive, at CHF3.8 billion.
