Strong Franc Pressure on Swiss Export Competitiveness

Switzerland's strong Swiss Franc (CHF) is putting pressure on the country's export competitiveness, according to Commerzbank. The CHF has appreciated significantly against both the US dollar and the euro in recent years.

The OECD purchasing power parity shows that the CHF is overvalued against the US dollar by more than 10%. This appreciation has likely exerted additional pressure on price competitiveness for Swiss exporters.

When looking at overall market share gains since 2019, Switzerland appears to have gained market share in its largest export markets. However, this result changes when precious metals are excluded from the figures. In fact, Switzerland has lost market share in this category, with some losses amounting to double-digit percentage points.