Swiss trade surplus to decline this year and net exports to be a small drag on GDP

Sharp CHF appreciation likely resulted in losses for exporting firms that believed the floor would be maintained and thus kept their FX positions un-hedged. 

On a tradeweighted basis, the CHF has appreciated 10% since the EUR-CHF floor was removed. 

Standard Chartered notes...

• We expect increased imports and lower exports to reduce the trade surplus, and net exports to be a small drag on GDP this year. 
  
  
• Fewer tourist arrivals (with tourists preferring cheaper destinations) will also weigh on the Swiss economy.