The value of Swiss watch exports in 2004 established a new record, exceeding for the first time the 11 billion franc mark (11.1 billion). This represents an improvement of 9.2%, or 932.3 million francs, on the 2003 result.

The year 2004 saw in particular two very strong monthly increases in June and August, as well as two successive records with the highest monthly values ever achieved, in October and November. The decline recorded in 2003 was quickly effaced thanks to the return of a more stable world geopolitical situation and a sustained economic recovery in the United States and Asia.

The pleasing growth recorded by Swiss watch exports should continue in 2005, with however a different development of the main regions compared to that of 2004.



Products
Exports of finished watches made even stronger gains than the sector as a whole. Their value rose to 10.2 billion francs, up by 9.9% compared to 2003. Contrary to the trend over recent years, the number of pieces exported showed a positive progression. With 25.1 million units, the increase was +2.1% (+510,000 pieces).

Among other watchmaking products exported by Switzerland, movements, cases, dials, hands and bracelets saw their value increase compared to 2003. However, large volume articles such as clocks and alarm clocks recorded a steep decline: -15.6% for all such products.

Most materials saw their situation improve. The value of steel timepieces rose by 10.9% and that of gold timepieces by 10.2%. Bimetallic and platinum watches also outperformed the average, with respectively +11.4% and +15.4%.

Growth of volumes was due mainly to steel timepieces, which accounted for more than one in two watches exported. These products gained more than a million units compared to 2003, rising to a new level of 12.8 million pieces (+8.7%). Bimetallic timepieces (+3.5%) and gold timepieces (+3.0%) registered more modest increases. Materials in the economy range experienced a decline in terms of the number of pieces.

Markets
During the year 2004, the fifteen main markets showed the following trend.

The United States remains securely in first place among the main markets of the Swiss watch industry. With 1.9 billion francs, the territory recorded an increase of 12.9% compared to 2003, reflecting the good economic climate that held sway in the country in 2004.

In Asia, Swiss watch exports to Hong Kong increased by 15.6%. The former British colony has already recovered from the difficult situation caused by the SARS epidemic in the second part of 2003 and the economy experienced renewed growth throughout 2004, to the benefit of Swiss watch manufacturers. Despite an economic recovery in Japan, watch exports failed to make an impact there and remained stable (+0.5%). This situation should change in 2005, when positive results can be expected. After experiencing impressive rates of growth due to a very favourable base effect, China registered a more moderate increase, albeit well above the average (+41.7%).

2004 will have been a fairly stable year in Europe for Swiss watch manufacturers, with exports increasing by 2.7% on average. Italy, the leading market on the Old Continent, joins those countries registering a satisfactory increase, with +5.7%. The situation is more difficult in France, Germany and the United Kingdom. Russia recorded a good performance (+17.1%), which saw it overtake Saudi Arabia and move up one place compared to 2003.