BERN: The Swiss economy contracted by 0.2 percent in the first quarter of this year, the national statistics agency said Friday, as the sharp appreciation of the franc hammered the country’s key export sector.
“The trade balance in goods and services in particular delivered negative growth contributions,” said Seco in a statement.
Exports of goods fell by 2.3 percent as the Swiss franc jumped in value. The Swiss National Bank in January abruptly abandoned its three-year effort to hold down the franc’s exchange rate to protect exports. The categories of machinery, equipment, electronics as well as precision tools, watches, jewellery also reported a fall in exports, it added.
Overall, the trading sector contracted by 1.9 percent, accommodation fell by 3.8 sectors and manufacturing industry dipped by 0.1 percent.
