Swiss Exports Show Sharp Decline in Early 2025

Swiss foreign trade has experienced a significant downturn at the beginning of 2025, with exports falling by 6.9% to CHF22.7 billion ($25.1 billion) in January compared to December 2024. The Federal Office for Customs and Border Security reported that this decline, when adjusted for seasonal factors, represents a real terms reduction of 3.9%. This marked reversal comes after a strong performance in December, signaling a challenging start to the new year for Swiss trade.

The chemical-pharmaceutical sector, traditionally a cornerstone of Swiss exports, emerged as the primary driver of the overall decline, recording a substantial 12.5% decrease. This downturn is particularly noteworthy given the sector's record-breaking export performance throughout 2024. The customs administration has characterized the current situation as presenting a 'distorted' overall picture, suggesting underlying complexities in the sector's performance dynamics.

Despite the overall decline, several industries demonstrated resilience and growth. Notably, jewelry and jewelry goods showed remarkable strength with a 44% increase in exports. The watch industry continued its positive trajectory, growing by 2.7% and reaching its highest export levels since August 2024. The machinery and electronics sector also maintained growth with a 1.8% increase. In total, seven out of eleven product groups reported higher exports, highlighting the varied nature of Switzerland's export economy.

The geographical distribution of the export decline reveals a concentrated impact in North America, which experienced an 18% reduction, primarily due to decreased pharmaceutical exports to the United States. In contrast, trade with other major regions remained relatively stable, with Europe and Asia showing only marginal declines of 0.6% and 0.3% respectively. This pattern suggests specific regional challenges rather than a global deterioration of Swiss export competitiveness.

The trade balance surplus contracted to CHF4.3 billion, reflecting the steeper decline in exports compared to imports, which fell by 6.8% nominally to CHF18.7 billion. This development has important implications for Switzerland's economic outlook, particularly given the country's reliance on export-driven growth. While the current situation presents challenges, the varied performance across sectors suggests underlying economic resilience and adaptability in the Swiss export industry.