The Swiss Franc strengthened against the Pound and Euro after data showed that the Swiss economy expanded more the economists expected in the third quarter and that the nation’s exports helped it outperform Germany.
According to the State Secretariat for Economic Affairs (SECO) the Swiss economy expanded by 0.5% in the third quarter matching the second quarter’s growth rate. The figure beat economist forecasts for a dip to 0.4%. On a yearly basis GDP expanded by 1.9%, down from the expected 2.1%.
The Franc was also supported by data which showed that construction investment increased by 1% and the exports of goods and services increased by 0.5%. Household consumption also increased by 0.2% in the third quarter.
Switzerland’s continued economic expansion and the fact that it has only suffered from one quarter of contraction suggests that the Swiss National Bank’s decision to impose a cap on the Franc of 1.20 per Euro in September 2011 is working. Whilst the surrounding Eurozone only exited an 18-month long recession in the summer the Swiss economy has stayed positive.
The Swiss economy is expected to outperform that of the Eurozone next year as well. The Organisation for Economic Cooperation and Development foresees Swiss growth of 1.9% this year, accelerating to 2.2% in 2014. That compares with a predicted contraction of 0.4% for the Euro area in 2013, followed by an expansion of just 1% next year.
Current Swiss Franc (CHF) Exchange Rates
Swiss Franc/ Euro Exchange Rate is currently in the region of: 0.8124
Swiss Franc/US Dollar Exchange Rate is currently in the region of: 1.0528
Swiss Franc/ Pound Sterling Exchange Rate is currently in the region of: 0.6777
Swiss Franc/ Australian Dollar Exchange Rate is currently in the region of: 1.2101
(Correct as of 09:45 am GMT)
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