by Exports to China dropped by half in February compared to the year before. (© Keystone / Peter Klaunzer) The closure of shops caused by the spread of the coronavirus worldwide will cost Swiss watch firms dear, but exports are expected to rebound next year. “The Swiss watch industry will experience the largest decline in the past 50 years,” says a study published by private bank Vontobel on Wednesday. The projections are based on the assumption that stores will be open again in May or June. The anticipated 25% drop in exports in 2020 is even “slightly larger than that recorded in 2009 (-22%) during the financial crisis”, said analyst René Weber. Watch exports are expected to fall by more than 30% in March, following a 9.2% decline in February during which China,
Topics:
Swissinfo considers the following as important: 3) Swiss Markets and News, 3.) Swiss Info, Business, Featured, newsletter
This could be interesting, too:
Nachrichten Ticker - www.finanzen.ch writes Krypto-Ausblick 2025: Stehen Bitcoin, Ethereum & Co. vor einem Boom oder Einbruch?
Connor O'Keeffe writes The Establishment’s “Principles” Are Fake
Per Bylund writes Bitcoiners’ Guide to Austrian Economics
Ron Paul writes What Are We Doing in Syria?
Exports to China dropped by half in February compared to the year before. (© Keystone / Peter Klaunzer)
The closure of shops caused by the spread of the coronavirus worldwide will cost Swiss watch firms dear, but exports are expected to rebound next year.
“The Swiss watch industry will experience the largest decline in the past 50 years,” says a study published by private bank Vontobel on Wednesday. The projections are based on the assumption that stores will be open again in May or June.
The anticipated 25% drop in exports in 2020 is even “slightly larger than that recorded in 2009 (-22%) during the financial crisis”, said analyst René Weber.
Watch exports are expected to fall by more than 30% in March, following a 9.2% decline in February during which China, the origin of the pandemic, saw a decline of 50% compared with the previous year. For the second quarter of 2020, a 40% drop in the sector’s exports is expected.
Production is also an issue. Watch manufacturers such as Rolex, Audemars Piguet, Patek Philippe, Hublot and Tag Heuer have temporarily closed their production sites. Others like Swatch have resorted to reduced working hours.
Rebound expected
With a possible resumption of activities in May or June, the second half of the year should show an improvement, according to the report.
Currently, stores have started to reopen in China even though the number of customers remains modest. Businesses began closing at the end of January, while in Europe and the US it was in mid-March.
According to the report, the watch industry should bounce back to post an increase of around 15% in 2021, as in 2010 (+22%).
The industry was enjoying good business until the coronavirus restrictions hit it. In 2019, the Swiss watch industry recorded an increase of 2.4% or CHF21.7 billion ($22.5 billion) in its exports.
You Might Also Like
Big reductions in Swiss public transport services
Swiss public transport has been widely reduced as of Monday, with the Federal Railways cutting back on services as part of nationwide anti-coronavirus measures. The scaling back of Europe’s most-used rail network in an effort to combat the spread of Covid-19 was announced last week as part of wider measures to reduce social contact and slow down the pace of life in the country.
Switzerland faces recession in 2020 due to pandemic, experts warn
Switzerland is headed towards a severe recession this year due to the economic fallout of the coronavirus, experts warn. If the pandemic is brought under control, the Swiss economy should rebound strongly in 2021.
Companies contemplate bleak coronavirus outlook
Swiss companies are reporting slumping sales, cashflow problems and bottlenecks in the supply of crucial materials as the coronavirus crisis hits the economy. However, a survey also found that three out of four firms are satisfied with a CHF42 billion ($43 billion) state bailout package.
France drops blocks on face mask exports to Switzerland
After Germany, France has lifted restrictions on the delivery of hygienic face masks to Switzerland. Some two million masks are needed each day, according to the Federal Office for Public Health. The French embassy to Switzerland made the announcementexternal link on Saturday, paving the way for two shipments of FFP2 hygienic masks to go ahead from France to Switzerland.
Swiss real estate market suffers fallout from epidemic
The Covid-19 crisis could spell an end to the previously rosy situation for Switzerland’s real estate investors. Investors in residential property look back on a successful 2019 both in terms of value increase and of returns. Forecasts for the current year were optimistic until recently, for both property owners and renters.
Swiss firms rush to claim emergency coronavirus loans
A third of a CHF20 billion ($21 billion) fund offering state guaranteed loans to small and medium sized Swiss companies has been used up just four days after being introduced. The loan facility has already promised CHF6.6 billion in funding of up to CHF500,000 to nearly 32,000 firms – an average of CHF207,000 per company.
EasyJet Switzerland seeks state aid as virus empties skies
Airlines around the world are battling to survive the coronavirus pandemic. After grounding its fleet of planes on Monday, EasyJet Switzerland has confirmed that it is hoping to receive Swiss state aid. EasyJet said on Monday that it had grounded its fleet of 344 planes and had no clear idea when it might resume flights. In Switzerland, the airline normally operates flights to Geneva, Basel-Mulhouse and Zurich airports.
Swiss commodities sector grapples with Covid-19 turbulence
The strategic importance of commodities and experience in handling fluctuations has helped commodity firms weather the coronavirus storm better than most. swissinfo.ch caught up with Florence Schurch, general secretary of The Swiss Trading and Shipping Association (STSA), to find out how the commodities sector is handling the crisis and what it means for Switzerland.
Tags: Business,Featured,newsletter