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Swiss exports in December "mensis horribilis"

Published 02/03/2009, 03:03 AM
Updated 02/03/2009, 03:08 AM

ZURICH, Feb 3 (Reuters) - Switzerland's exports plunged 13 percent in December, as demand from key markets such as Germany slumped, underpinning views that the export-dependent Alpine country was facing its worst recession in decades.

Exports dropped 13 percent on the year when adjusted for price swings and working days as demand was fading fast across regions and sectors, the Federal Customs Office said on Tuesday.

"December was the "mensis horribilis" for trade," the office said in a statement. "December was clearly the weakest month not only in 2008, but for many years."

The country's trade balance narrowed sharply to 217 million Swiss francs from 2.25 billion francs in November.

Exports were also 13 percent lower compared to November when adjusted for seasonal swings, the data showed.

The Swiss National Bank sees the economy contracting by between 0.5 and 1.0 percent this year and has slashed interest rates to close to zero to mitigate the impact of the global downturn.

The central bank has said it might turn to less conventional means to boost the economy such as interventions to weaken the franc, which has risen against the euro, making Swiss exports more expensive abroad and adding another burden on firms. (Reporting by Sven Egenter; editing by Chris Pizzey)

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