The outlook for Switzerland's export industry improved slightly in October, although future developments will rely on external factors.

Indeed, the semi-annual Allianz Trade Export Forecast reached -0.12 points in October, marking an increase of 0.35 points. The multi-year low of -1.4 points recorded at the end of 2022 is now a thing of the past, according to Allianz Trade's announcement on Thursday.

“It appears that most Swiss export companies are in a good position,” stated Jan Möllmann, CEO of Allianz Trade Switzerland, on the index. 

The improvement in Switzerland's export outlook was primarily driven by air freight and the financial markets. However, Möllmann expressed cautious optimism about the future, noting that developments are heavily influenced by the global economy and geopolitical factors, Swiss Info reports.

The report also indicated that industrial production is declining across all sectors worldwide, which is diminishing demand for Swiss goods.

Furthermore, the Swiss Franc remains strong, which is making Swiss exports more expensive. The report notes that exports to Europe, in particular, have lost momentum in recent months. 

However, Allianz Trade experts anticipate that the Swiss economy will continue to recover by the end of the year, driven by the easing of monetary policy in Europe and the USA, which is likely to stimulate international demand for goods.

However, this improvement is unlikely to be sufficient to drive significant investment in equipment. “The momentum is only likely to develop towards the end of the year,” the insurer stated.

The Allianz Trade Export Index incorporates leading indicators from various sectors, including industry, transportation, financial markets, and commodities, as well as new sentiment indicators. The model consists of approximately 100 components.