SNB: balance of payments declining (cross-border guide)
Balance of payments balance in significant decline in the first quarter for the Swiss economy. The current account surplus was 16 billion francs, 11 billion francs less than the same period last year, the Swiss National Bank (SNB) said today.
Contesto
In short, the balance of payments surplus stopped at 16 billion francs in the first quarter of 2023, down 11 billion from the same period a year earlier. The decline is mainly attributable to the exchange of goods and the deficit in non-monetary gold trade. The surplus in the reporting period was relatively high, the Swiss National Bank (SNB) recalled. ## Key facts - What: Decline in the balance of payments in Switzerland - When: First quarter 2023 - Where: Switzerland - Who: Swiss National Bank (SNB) - Amount: Current account surplus of CHF 16 billion The SNB today indicated that the balance of payments surplus stopped at CHF 16 billion in the first quarter of 2023, down by CHF 11 billion from the same period last year. The decline is mainly attributable to the exchange of goods and the deficit in non-monetary gold trade. The exchange of goods decreased by 10% compared to the same period of the previous year, from 120 billion francs to 108 billion francs. This decline was influenced by difficulties in international trade, such as rising transport costs and geopolitical tensions. For example, exports of chemicals and pharmaceuticals, which account for a significant share of Swiss exports, fell by 7% compared to the same
Dettagli operativi
Switzerland's current account surplus was CHF 16 billion in the period under review, which is CHF 11 billion less than in the same period of the previous year. This decline was mainly caused by the interchange of goods and the deficit in non-monetary gold trade. However, it is important to point out that the surplus in the reference period was relatively high, as the SNB recalled. The exchange of goods recorded a significant drop, with a surplus of only CHF 3 billion, compared to CHF 12 billion in the same period of the previous year. This decline was particularly noticeable in the watchmaking sector, with a deficit of CHF 2 billion, due to competition from low-cost products from Asia. In addition, the pharmaceutical sector recorded a smaller surplus compared to the same period of the previous year, due to the decrease in exports to developing countries. The deficit in non-monetary gold trade was CHF 4 billion, compared to a surplus of CHF 3 billion in the same period last year. This result was influenced by regulations introduced by the Swiss National Bank (SNB) in 2014, which limited the amount of gold that Swiss banks can buy. In addition, the price of gold has increased over the period under review, making the purchase of non-monetary gold less convenient for ## Useful tools to protect your net income To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.
Punti chiave
Switzerland's net asset position abroad increased by CHF 18 billion in the first quarter of the year to CHF 974 billion. This increase was driven by an increase in assets, which rose by CHF 71 billion to CHF 5,419 billion, while liabilities grew by CHF 53 billion to CHF 4,445 billion. The balance of payments is an important tool for assessing a country's relationships with nations beyond its borders. It includes all income and expenditures of an economy abroad, such as trade in goods and services, labor and capital income. For example, in 2020, Switzerland's trade in goods and services abroad reached a value of CHF 624 billion, with a surplus of CHF 104 billion. Switzerland has had a surplus balance of payments for many years, which is considered a sign of the economy's strength. However, a large surplus can also cause problems. For example, the United States has already accused Switzerland of currency manipulation, as the strength of the Swiss franc can make Swiss products less competitive on international markets. The balance of payments can also provide indications about the health of the Swiss economy. For example, an increase in imports may indicate an increase in domestic demand, while an increase in exports may indicate an increase in competitiveness Source: tio.ch
Punti chiave
[{"q":"What is the balance of payments?","a":"The balance of payments is an indicator that records all the income and expenditure of an economy abroad, including not only trade in goods but also trade in services, labour and capital income."},{"q":"What are the factors that affect the balance of payments?","a":"The factors that influence the balance of payments are the interchange of goods, non-monetary gold trade, interchange of services, primary and secondary incomes."},{"q":"What are the consequences of a large balance of payments surplus?","a":"A large surplus in the balance of payments can be considered a sign of strength of the economy, but it can also cause problems, such as the accusation of currency manipulation by other countries."}]
Frequently Asked Questions
- What is the balance of payments?
- The balance of payments is an indicator that records all the income and expenditure of an economy abroad, including not only trade in goods but also trade in services, labour and capital income.
- What are the factors that affect the balance of payments?
- The factors that influence the balance of payments are the interchange of goods, non-monetary gold trade, interchange of services, primary and secondary incomes.
- What are the consequences of a large balance of payments surplus?
- A large surplus in the balance of payments can be considered a sign of strength of the economy, but it can also cause problems, such as the accusation of currency manipulation by other countries.