Export sentiment among Swiss SMEs weakens slightly
Export sentiment among Swiss SMEs continues to weaken, but remains positive overall. For the 2nd quarter, 47% of all SMEs expect exports to rise, while 38% anticipate stagnation.
The latest export sentiment survey by Switzerland Global Enterprise (S-GE) and the Credit Suisse Export Barometer confirm the downward trend in export sentiment seen in previous months. The reason for the slightly weakened expectations of SMEs is likely to be primarily the signs of a continued decline in industrial growth in Europe and particularly in Germany. Nevertheless, S-GE and Credit Suisse see the survey results and as a return to normality.
People are happy to pay for Swiss quality
Swiss SMEs cite "Swissness" as a key success factor in internationalization. A large proportion of the SMEs surveyed state that foreign customers value their quality and many are prepared to pay more for it. From the SMEs' point of view, the economic and political stability speak in favor of Switzerland as a business location. Sascha Jucker, economist at Credit Suisse, says: "Even if export expectations for Switzerland are weakening slightly, foreign demand for Swiss products remains intact. The worsening industrial sentiment in Europe is also offset by the somewhat more stable sentiment in the US. The outlook for Swiss exports therefore remains good."
"No need to worry"
Alberto Silini, Head of Consulting at Switzerland Global Enterprise (S-GE), states: "The weakening of export sentiment is no cause for concern. Rather, exporters now need to position themselves in the various markets for the long term. Swiss quality is a trump card they can play here."
By far the most important export market is and remains Germany in every respect, according to the current export barometer. This is where 81% of the SMEs surveyed want to export goods or services in the next six months. With 63% of the mentions, France is once again in second place, followed by the USA with 60% of the mentions. Austria comes in fourth with 55%, followed by Italy and China with 50% each. Seventh place goes to Spain with 47%, followed by Poland with 44%. As far as new export markets are concerned, 16% of the SMEs surveyed said they intended to become active in China for the first time in the next six months. India follows with 14%, 11% are targeting Japan and the United Arab Emirates, and 10% named Russia and Indonesia as new destinations. 9% of the SMEs want to export to South America or the Gulf States.
Source: Switzerland Global Enterprise
