Swiss Franc experiencing a recession Blow
Swiss Franc has been suffering for more than two years now. Although 2015's recession was prevented but economists are still worried. The Central Bank consider's Franc's exchange rate to be Significantly Overvalued.
This has affected various areas of trade , specially the exports sector where the end quarter results of 2016 were the worst ever in previous 2 years.There is a decline of 2.5 percent in exports. The economy which was predicted by experts to rise by 0.4 percent in the last quarter , rose only by 0.1 percent signalling a massive policy issue. There may be many other factors behind this situation like Donald Trump taking charge of The United States of America, The Brexit and elections in France. The currency has risen by 0.7 percent in the two months of 2017.
Some aspects in the country are still very good like a Swiss Building Material Maker which makes adhesives for waterproofing , sells these to other European countries. The Household products are now being used more than ever. A growth of 0.9 percent was detected in the last quarter. The investment in various sectors declined like in equipment by around 0.7 percent. Expert economists say that although the last quarter has disappointed most of the people but the future looks good for Switzerland, The data plans are well laid , special attention to exports and manufacturing industry. The plans are made as per international market.
People have had a bad impact due to this. Many people lost their job due to this fall in the market. The Investment ideas dropped by many and the overall investment was sharply reduced too. The new US Administrative policies could create an issue for the sectors having a good growth. Healthcare Sector which has been under constant growth for more than 2 years now, is expected to receive a blow because of these policies.The Swiss tool industry has already started experiencing downfall in the sales so as with the watches and the jewelry industry.The Tourism industry although has always been Switzerland's top attraction.The GDP has been affected a lot. Not only that the quarterly expectation of 0.4 percent growth fell to 0.1 percent but the whole year growth expectation of 1.3 percent got thrashed to just 0.6 percent for the whole year.
The Swiss Franc has also been competing with other major currencies like Euro and Pound. The franc fell to 1.0649 from the day's high of 1.0637 against the Euro. It fell to 1.2481 from 1.2454 against the pound and 1.0088 from 1.0058 for the US Dollar. Experts predict that the Franc will become constant near 1.08 against the Euro later in this year.
Swiss Franc has been trending on the market in the last 24 hours and many economists have been following it carefully. Although Switzerland is not a huge economy but it plays a crucial role in the international market. All the signs are against Swiss government and policies , but they consider this year's first quarter to start with optimism and hope that it proves to be a turning point in their declining economy and maybe 2017 be a profitable year after smooth execution of the well thought out laid data plans for Swiss Franc .