Chart of the week: Switzerland easily shoulders the strong franc
Switzerland has gone from strength to strength in spite of its rising currency.
Switzerland's exports are worth over two-thirds of GDP. So when the Swiss central bank gave up holding down the value of the Swiss franc against the euro in January, exports and growth looked set to suffer. Yet according to one think tank, exports should climb by 1.5% in 2015. How?
For starters, says The Economist, the eurozone's share of Swiss exports has declined from 55% to 44% in the past decade, and the franc has risen far less against the pound and the US dollar. Sales to the Middle East have also grown. But the key point is that Switzerland has lots of pricing power in its exports because of its products' high-quality reputation.
There are few substitutes for its watches, banks, pharmaceuticals and ski slopes. This is largely why Swiss exports have tripled in real terms in the past 30 years, even as the trade-weighted franc has climbed by 130%. "The Swiss just learn to get better," as one expatriate puts it.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
FTSE 100 dividends: where to find the best yield for UK equities
FTSE 100 dividend forecasts have plateaued but investors can still find good yields in UK equities with payments expected to reach £78.6bn in 2024
By Katie Williams Published
-
Will the R&D tax credit change in the Autumn Budget?
Will Labour revise state help designed to foster R&D in the upcoming Autumn Budget?
By David Smith Published
-
The charts that matter: bond yields and US dollar continue to climb
Charts The US dollar and government bond yields around the world continued to climb. Here’s what happened to the charts that matter most to the global economy.
By Ben Judge Last updated
-
The charts that matter: markets start the year with a crash
Charts As markets start 2022 with a big selloff, here’s what happened to the charts that matter most to the global economy.
By Ben Judge Published
-
The charts that matter: Fed becomes more hawkish
Charts Gold rose meanwhile the US dollar fell after a key Fed meeting. Here’s what else happened to the charts that matter most to the global economy.
By Saloni Sardana Published
-
The charts that matter: a tough week for bitcoin
Charts Cryptocurrency bitcoin slid by some 20% this week. Here’s what else happened to the charts that matter most to the global economy.
By Ben Judge Published
-
The charts that matter: omicron rattles markets
Charts Markets were rattled by the emergence of a new strain of Covid-19. Here’s how it has affected the charts that matter most to the global economy.
By Ben Judge Published
-
The charts that matter: the US dollar keeps on strengthening
Charts The US dollar saw further rises this week as gold and cryptocurrencies sold off. Here’s how that has affected the charts that matter most to the global economy.
By Ben Judge Published
-
The charts that matter: gold hangs on to gains while the dollar continues higher
Charts The gold price continued to hang on to last week’s gains, even as the US dollar powered higher this week. Here’s how that has affected the charts that matter most to the global economy.
By Ben Judge Published
-
The charts that matter: inflation fears give gold a much needed boost
Charts US inflation hit its highest in 30 years this week, driving gold and bitcoin to new highs. Here’s how that has affected the charts that matter most to the global economy.
By Ben Judge Published