Switzerland’s trade surplus widened to CHF 2.35B in July from a revised reading of CHF 1.50B in the previous month as foreign demands improved for the first time in three-months. Exports climbed 4.1% from June after being adjusted for inflation and seasonal swings, while imports slumped 1.7% after rising 1.9% in the previous month. The data encourages an improved outlook for the export-driven economy as policymakers attempt to steer the nation out of the recession, and the economic expansion in German and France may help the Swiss economy to cope with the downturn in global trade as the Swiss National Bank attempts to stem the appreciation in the exchange rate. At the same time, the Swiss ZEW investor confidence survey jumped to a three-year high of 18.6 from 0.0 in July, which reinforces an improved outlook for future growth however, the central bank is likely to maintain a dovish outlook going forward as policymakers anticipate economic activity to remain subdued in 2010.
