Swiss business doing well months after franc shock

St Gallen, Switzerland

WHEN the Swiss central bank abandoned its cap on the franc in January, corporate Switzerland warned of an economic "tsunami" that would hit exports, hammer jobs and plunge the Alpine nation into a deep recession. Four months later, however, the country appears to be holding up better than the doomsayers had predicted.

At an annual gathering of business leaders in St Gallen last week, Swiss firms said they were weathering a sharp rise in the Swiss franc's value against the euro since the cap was scrapped by adjusting prices, emphasising new markets and seeking more flexible hours from staff.

A strong US dollar has helped cushion the blow for some firms and those that import intermediate goods from the eurozone have actually benefited from the franc strength. There are sectors, notably tourism and machinery firms wi…