Strong franc threatens Swiss growth

The trend of economic growth in Switzerland continued in the second quarter of 2010, with the country's gross domestic product (GDP) increasing by 0.9 percent over the preceding quarter. But in the long term the economy could suffer as a result of Switzerland's strong currency, the liberal daily Corriere del Ticino warns: "The Swiss franc has risen rapidly against the euro and to a certain extent the dollar too. So far this upvaluation has not harmed the export of goods and services because Swiss quality standards are very high. ... But everything has its limits, as the national bank [SNB] has repeatedly stressed. The second-quarter growth of Switzerland's GDP was due ... mainly to domestic demand. Exports dropped despite expansion. So a cautious approach is still warranted."

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