According to official data, Swiss exports slowed down in March but were able to remain fairly optimistic even as manufacturers in the country had to adjust to the increasing value of the Swiss franc. Due to short spells of risk aversion by the Swiss government, the franc has recently reached new, high levels against both the dollar and the euro recently, which has subsequently increased the price of Swiss goods for international buyers.

“The export industry has resisted (the rising franc) well so far but the question is how long this is going to last”, said Fabian Heller, an economist at Credit Suisse. “Swiss exporters have also reacted by lowering prices. This means that the strong franc has an impact not only on demand but also on exporters’ margins”.

In the first quarter, Switzerland experienced a 12.3% rise in exports, led by industries like watches, electronics, machines and metals. However, many economists have stated that the financial situation inside of the country is a breeding ground for interest rates to increase, especially because of the low levels of unemployment and a thriving real estate industry.

Heller stated that he expects the Swiss National Bank will raise its interest rates at the end of the year, depending upon the development of the franc.