(17.01.2024) The appreciation of the Swiss franc poses a risk to Swiss exporters. The umbrella organization Swissmem is urging public authorities to improve the framework conditions, emphasizing that the MEM sector employs 330,000 people, and 80% of its production is sold abroad.
Primarily composed of SMEs, the MEM industry (machines, electrical equipment, and metals) is currently experiencing a recession, marked by a 10.5% decline in order intake during the first three quarters of 2023. This situation is mainly attributed to persistent challenges in key markets such as Germany and China.
In addition to this, there is now the issue of the lack of competitiveness of the Swiss national currency. According to Swissmem, the resilience of exporters, accustomed to a strong franc for several years, is being challenged by the exceptionally rapid exchange rate developments. The Swiss franc has been on an upward trend since the fall of 2023, with a 9.17% increase against the dollar and a 4.85% increase against the euro between September 30 and December 30.
In this uncertain context, Swissmem believes that political action is necessary in the medium term. According to the umbrella organization, the elimination of customs duties on industrial products implemented on January 1, 2024, represents a positive but insufficient first step. The association particularly wishes for the Swiss National Bank to take action to curb the appreciation of the franc, "provided that it does not compromise price stability."
The representatives of the industry also call on federal authorities to promptly conclude free trade agreements with India and Mercosur (Argentina, Brazil, Paraguay, and Uruguay), as well as to stabilize relations with the European Union through bilateral agreements.
Last modification 17.01.2024
