Economy Current account surplus of 20 billion in the second quarter

The Swiss economy once again achieved a high current account surplus in the second quarter of 2024. From April to June, Switzerland took in CHF 20 billion more than it spent.

The surplus was therefore almost CHF 6 billion higher than in the same quarter of the previous year, according to a statement from the Swiss National Bank (SNB) on Friday. This was primarily due to trade in goods.

According to the SNB, traditional trade in goods and trade in gold for non-monetary purposes contributed to the increase in the goods trade balance. By contrast, the surplus in merchanting was lower than in the same quarter of the previous year.

The SNB explained that the expenditure surplus in secondary income also contributed to the higher balance. This is because it was lower than in the previous year. Meanwhile, the balances for trade in services and primary income showed no significant changes.

Capital account reduced

The transactions reported in the financial account showed a net reduction on the assets and liabilities side in the second quarter of 2024 (4 billion and 35 billion respectively), it added. Taking derivatives into account, the capital account balance amounted to CHF 29 billion.

On the assets side, according to the SNB, there were shifts between direct investments and "other investments". There was therefore a net increase in equity capital and a net decrease in the interbank market.

On the liabilities side, there was reportedly a net reduction in portfolio investments. Specifically, the SNB Bills issued by the central bank and held by investors abroad expired in the quarter under review.

Foreign assets hardly changed

Net international investment position hardly changed in the 2nd quarter of 2024. Compared to the previous quarter, they increased by CHF 5 billion to CHF 894 billion.

Total assets fell by CHF 5 billion to CHF 5,317 billion, while total liabilities fell by CHF 10 billion to CHF 4,423 billion.

The current account records all income and expenditure of an economy, including not only trade in goods but also trade in services (tourism, etc.), labor and capital income and current transfers. A high surplus is a sign of an economy's strength.

SDA