DISCUSSION OF SWISS ECONOMIC POSITION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00423R001001650001-7
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: November 9, 2016
• Document Release Date: March 26, 1999
• Sequence Number: 1
• Publication Date: October 12, 1953
• Content Type: REPORT

Approved F ,r 8609/10 :CIA RDP83-00 ~Q01001 5001I ~,-
scanty 6nforMAtior:
12 October 1953
COUNTRY: Switzerland.
SUBJECT: Discussion of Swiss Economic Position
25X1A
Place Acquired:
Date Acquired: M
Date of Info: 24 Aug 53 and earlier
CPYRGHT
1.
3.
25X1A
"Translation of an Article Published in the 'Neue Z{ircher
Zeitung' of August 2 1953
Although there are great differences in the development of the
international business position between the different countries
and economies, production and occupation have, generally speaking,
slightly recovered in most of the countries. Less business in
some branches is balanced by a more favourable position in con-
sumption goods' industries. In Switzerland, the boom has changed
during the second quarter into a consumption and quantity boom.
Business position in the metal working industries has worsened
slightly, but this is evened by an increasing recovery in the
textile industry.
"The business position stayed stable, owing to the regular consumer's
demand. This situation is reflected in the retail-trade turnover
statistics, showing an increase in sales by 1.2% (2% per selling day),
compared with last year, although prices have generally gone down
slightly. During the past 12 months per the end of June (/1.7% com-
pared with the year before), the turnover has increased by 2.1% for
necessaries and luxuries, for textiles by 1.5o and for other goods
by 1.3%.
and the first semester of 1953
(-9.7%), in comparison with those finished last year, but this deficit
is already smaller than the one of the two preceding quarters (-10.5%
and -17.7%) and is due, at least partly, to external causes (weather,
strike). More building-permits issued (2nd quarter / 42%, 1st
semester / 25.5%) promise.a continuance of the lively house-building
'Also house-building is still a strong pillir of our boom position.
It is true that less apArtments were finished in the 42 towns during
the quarter under review (8 s )
EET1 n T CIA
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 Approved For Release)1,,~ 9l IA-RDP83-00423 R001001650001-7
CPYRGHT Security Informatioi
for the near future. Industrial house building too is still very
important, although less than in 1950 and 1951.
"The continuous good average occupation of the industry (including
building-trade) is reflected in-the high index level of the occupied
workers (1938 . 100) which by the end of the second quarter 1953 is
with 138,6 slightly higher than in the previous quarter (136.6). It
may be said that this increase is partly seasonal, but in comparison
with last year's level (138.8) it is only little weaker. A satisfactory
state of occupation is marked by producers Frith 100, and the index
number for the quarter under review shows 124 (120 for the previous
quarter and 121 for the same quarter in 1952). The total of overtime
work permitted to factories is, for the first half of 1953, by 3.5%
higher than for the same lapse of time last year. Overtime by metal
industries is not so predominant as last year; it has decreased notice-
ably, whereas it increased considerably in some industries for con-
sumption goods. The inland consumption of electrical energy was alsp
higher than last year (quarter / 2.6%, semester / 2.4%).
"Besides the lively demand for consumer goods and the vivid house-
building, the important export is helping to keep our economy on a
high level. Our export figures are lying distinctly over last year's
values, namely by 11% for the second quarter and 9.3o% for the first
semester. The quantitative increase is even greater (jL 17 and / 12.50.
On the other hand, import figures are behind last year's both for the
quarter and the semester. (va.l.ue by ' 5 and 110, quantity by 7 and 10%).
This contrary development of'export and import caused, with a consi-
derable export surplus in the first and a small import surplus in the
second quarter, an active balance of trade for the first semester
(1L 34.4 mill SFr, previous year - 480.5 mill SFr). This active balance
of trade is contrary to the usual, and for a highly industrial country
with a creditor balance normal rule. There are certain signs that
this situation will change,, as import increased by 8% from the lst to
the 2nd quarter, whereas export only increased by 0.6%, thus reducing
the active surplus from 59 mill SFr by the end of the first quarter
to the above -mentioned 34 mill SFr by the end of the first semester.
"The contribution of foreign visitors trade to the Swiss economy re-
flects - apart, of course, from influences of season and weather - the
general economic situation. The figures of the statistics for the
Spring season (March to Play) show that the number of visitors is in-
creasing. In hotels and boardinghouse(- 16.8% more guests were lodged
and 10.5% more over night-stays were counted. This increase is caused
by more foreign visitors; for Swiss visitors only an increase of lodgings
of 1.1% is recorded, whereas for guests from abroad the figure is 23.7%.
This increase is obviously, for the main part, due to the easing of the
travelling facilities abroad, especially in Germany, Great Britain, etc.
German guests marked the biggest increase, approx 50%, and the number of
their nights lodgings is 474.000 higher than the one for English (245.000)
and French (206.000) visitors together. Contrary to the hotels, the
sanatoriums booked slightly less night's lodgings than in Spring 1952
(-3.6%).
 Approved For Release 19991116 OR OR . P83-004238001001650001-7'
CPYRGHT Security Information
. "The Swiss Federal Railways transported 4.4% more passengers during
the quarter under review in comparison with the first quarter, but
for the first semester, a decrease of 1.3% is resulting, probably
Mainly because of the increasing automobile traffic. The tonnage
of goods transported by the Swiss Federal Railways continued de-
creasing (in the first quarter - 8.8%, in the quarter under review
1.2%, in the first semester - 4.9%, in comparison with the previous
year). This decrease is mainly in connection with smaller imports,
as also the goods traffic on the Rhine river was decreasing (-13.1%,
resp - 8.4%, resp 10.6%).
"Bad weather during the quarter under review caused considerable
damage to the agricultural production. Smaller hay-harvests and
cherry crops were the result and for early potatoes, fruit and wine,
smaller crops are forecast. For corn and field fruit, medium crops
are expected. For slaughtering more beasts were offered than last
year and prices, especially for pigs, slunxped.During the quarter
under review, milk production was 3.4% higher than last year and
during the semester 3.1%. The excess milk was manufactured into
hard-cheese. At the end of June, the price-index of agricultural
products was 2.1 index points below the one of the previous year,
despite the price increase in May of milk products, and owing to
the slump in slaughtering beasts, whereas the price index for agri-
cultural material for production was lying 1.2 points below last yew.
"The money market is still fluid - at the end of July, 193 million SFr
or 1.4% more money was available at the bank of issue than at the end
of April and 389 mill SFr or 6.2a more than a year before - which is
in connection with the active Swiss payment balance. The active balance
with the members of the European Payment Union amounted to 153 mill SFR
in the second quarter and was balanced to one half by a gold and foreign
bills' cession and to the other half by a further Federal advance. *is
advance amounted therefore to 674 mill SFR at the end of June. On the
foreign exchange market, offers for USA $ exceeded demands, keeping
the exchange slightly above the lower gold point. The German mark was
rising considerably. In order to unify international payment modalities,
the multilateral foreign currency arbritation was again taken up for
the currencies of 8 EPU-countries. On the capital market, loans for
144 mill SFr and shares for 50 mill SFr were issued, whereas conversions
for 91 mill SFr were effected. The rate of interest for short-dated
money was invariably low, the average rates for cash-bonds kept sinking,
especially at the major banking-houses, and the profit on state's loand
has gone down slightly. The bonds' index was rising between the end of
April and the end of July from 315 to 324 points totally, whereas the
industry-bonds' index stayed practically stable.
0. "The Federal tax revenue totalled 432.2 million SFr in the quarter under
review (previous year 525.5) and in the first 6 months of 1953, 825.6
million SFr (918.3). The smaller revenue is mainly due to
military tax receipts. As a total, consumption tax and customs duties'
proceeds were greater than in 1952."
K
Approved For Release 1999/09/10 : CIA-RDP83-00423R001001650001-7