Swiss exports climb, watch industry still fell in January

Switzerland's trade surplus increased in January as imports declined sharply from the previous month, the Federal Customs Administration reported Tuesday. The trade surplus rose to CHF 4.7 billion in January from CHF 2.7 billion in December.
Month-on-month, exports  slid 4% m/m in real terms, after surging to a record level in December (+9.7% m/m). At the same time, imports slid 5.3% versus a 0.6% fall in the previous month.

On a yearly basis, exports growth slowed to 2.3% from 6.2%, while imports declined 6.8 percent, reversing December's 1.8% increase.
The pharmaceutical and chemical industry had a solid month with exports rising to a record of CHF 9bn (+17% y/y). Outside the pharma industry, the picture is not that bright as exports fell 5% m/m, with the watch industry recording one of its worst months (-11% y/y).

For now, the Swiss franc is still appealing for investors who want to take shelter from the ongoing uncertainty, especially ahead of the parliamentary and presidential elections across EU countries. However, the Swiss economy will continue to suffer from the situation and the outlook is not that great should political uncertainty in the European Union further deepen.