The group says that the outlook for this year is rather uncertain. And considering the still overvalued Swiss franc, it could lead to a further decline in exports amid a slowdown in economic conditions abroad. For some context, manufacturing still contributes to a decent chunk of the Swiss economy – around 22% of its GDP. And roughly 3/4 of Swiss-made products are manufactured to be shipped abroad. The industry group says that:
“The situation is very precarious. The Swiss franc remains overvalued by around 5% against the euro compared with purchasing power parity. Another appreciation surge or political shock could quickly exacerbate the downward spiral.”