A group representing Switzerland's engineering and technology-linked sector warned that the still high value of the Swiss franc and a slowdown in growth in major markets are clouding the outlook for the current year. Manufacturing is a major part of Switzerland's export-oriented economy, contributing around 22% to its GDP.
A trade association Swissmem said that in 2023, the Swiss technology sector recorded a 2.6% drop in exports, to 70.5 billion Swiss francs, due to a reduction in supplies to the European Union, Asia and the United States. The downturn was primarily due to industrial recessions in practically all major markets.
Since the beginning of this year, the franc has fallen by 4.3% against the US dollar after rising by almost 10% in 2023, which made the products of Swiss companies more expensive abroad.
According to Swissmem, last year the number of new orders - a signal for future growth - decreased by 8.4%. About 27% of the surveyed companies said they expect an increase in orders from abroad this year, while 37% expect a decrease. However, Swissmem said that the latest PMI data and the recent depreciation of the franc may be signs that the downturn may bottom out in mid-2024.