Swiss trade surplus hits all-time peak in July

* Overseas trade top contributor to export rise

* Watches are top gaining sector among exports

* Exports rise by real 2.2 pct y/y in July

ZURICH, Aug 19 (BestGrowthStock) – Switzerland’s trade surplus rose
to a record high in July and exports rose year-on-year, data
showed on Thursday, thanks to buoyant overseas markets and in
defiance of a stronger currency.

Exports from Switzerland rose by a real 2.2 percent in July
to 16.776 billion Swiss francs ($13.32 billion), the Federal
Customs Office said. Overall Switzerland ran a merchandise trade
surplus of 2.886 billion Swiss francs, its biggest ever, the
office said.

The Swiss franc, which investors regard as a safe haven,
rallied more than 10 percent against the euro in the first six
months of the year, prompting some to caution exports could
suffer.

The euro zone is Switzerland’s biggest trading partner. Last
week data showed Germany’s economy grew by 2.2 percent in the
second quarter — its fastest quarterly expansion since
reunification. [ID:nLDE67C0AI]

“I expect that in the third quarter things will continue to
be strong. If you look at German GDP figures, how exports are
booming in Germany, we can expect that Swiss exports will
continue to be strong,” ZKB economist David Marmet said.

“Most Swiss companies produce technologically sophisticated
goods and they have long-term contracts, so the exchange rate
doesn’t play so much of a role short-term.”

The customs office said the rise in exports was chiefly due
to extra-European growth. Watches posted a nominal 19.9 percent
increase, followed by metals and precision instruments.

Watch exports to Hong Kong, the most important market for
Swiss watches, rose 55 percent.

June’s trade balance was revised to 1.71 billion francs and
exports were revised to 17.254 billion francs.

Swiss trade surplus hits all-time peak in July