Press Release - Swiss balance of payments and international investment position: Q2 2016
© Swiss National Bank, Zurich (Switzerland) 2016
Overview
In the second quarter of 2016, the current account surplus amounted to CHF 17 billion. This was CHF 3 billion less than in the year-back quarter, mainly due to a decline in the receipts surplus in primary income (labour and investment income). The receipts surplus in primary income was CHF 1 billion, compared to CHF 7 billion in the year-back quarter. By contrast, the second-quarter surplus of receipts from trade in goods and services increased year-on-year by CHF 17 billion to almost CHF 20 billion.
In the quarter under review, the financial account recorded a net acquisition on both the assets and liabilities sides. On the assets side, the net acquisition amounted to CHF 29 billion (Q2 2015: CHF 40 billion), which was primarily made up of reserve assets and other investment. On the liabilities side, the net acquisition totalled CHF 24 billion (Q2 2015: CHF 11 billion), due mainly to other investment. In total, the financial account showed a balance of CHF 5 billion, or CHF 6 billion with the inclusion of derivatives.
In the international investment position, stocks of foreign assets increased by CHF 71 billion to CHF 4,298 billion in the second quarter of 2016. The increase was attributable both to transactions reported in the financial account and to capital gains resulting from stock exchange and exchange rate movements. Stocks of foreign liabilities also rose, by CHF 33 billion to CHF 3,541 billion, mainly due to transactions reported in the financial account. The net international investment position advanced by CHF 37 billion to CHF 757 billion.
Current account Receipts
According to foreign trade statistics (total 1), second-quarter goods exports increased year-onyear by CHF 4 billion to CHF 54 billion. Exports in the chemical and pharmaceutical industry, in particular, were up, while exports in the watch industry receded.
Receipts from non-monetary gold trading recorded a strong increase and came to CHF 19 billion, compared to CHF 13 billion in the year-back quarter. Net merchanting receipts declined by CHF 1 billion to CHF 6 billion. Overall (i.e. including merchanting and gold trading), receipts from goods trade amounted to CHF 79 billion, CHF 10 billion higher than in the year-back quarter.
Receipts from trade in services with foreign countries in the second quarter amounted to CHF 27 billion, up CHF 1 billion over the year-back figure. An increase was registered in insurance and pension services and business services, whereas receipts from financial services and transport services declined. As a result of lower income from investment abroad (particularly direct investment), primary income (labour and investment income) declined by CHF 7 billion to CHF 28 billion. Secondary income (current transfers) advanced by CHF 1 billion to CHF 10 billion over the second quarter of 2015.
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