External Trade of the Czech Republic

Commentary

Contents

According to preliminary data, seasonally adjusted exports increased by 0.8% while imports fell by 1.2% month-on-month. The trend component rose by 1.3% in exports and by 1.4% in imports.

Year-on-year, exports and imports at current prices were up by 19.5% and 14.5%, respectively. Due to appreciation of the Czech koruna against the euro and especially against the US dollar, external trade grew faster in terms of euros (exports +20.3%, imports +15.2%) and US dollars (exports +31.7%, imports +26.1%) than external trade in Czech korunas.
The trade balance reached a surplus of CZK 13.6 billion, which is the highest monthly value since 1993. Surplus rose by CZK 8.8 billion year-on-year, which is the highest figure since April 2005. The trade balance with EU27 states was active by CZK 37.1 billion and with non-EU27 states passive by CZK 23.5 billion.
Especially increase in trade surplus in ‘machinery and transport equipment’ by CZK 3.4 billion and a fall of trade deficit in ’mineral fuels, lubricants and related materials’ by CZK 3.3 billion contributed to the balance improvement. Also trade balance in ‘miscellaneous manufactured articles‘ (surplus up by CZK 2.9 billion) and ‘crude materials, inedible, except fuels’ (a deficit of CZK 0.4 billion turned into the surplus of CZK 1.2 billion) developed favourably. A fall of CZK 1.0 billion in trade surplus in ’manufactured goods classified chiefly by material’ and increases of CZK 0.8 billion in trade deficit in ‘chemicals and related products’ and CZK 0.5 billion in ’food and live animals’ affected the trade balance unfavourably.
Total exports and total imports of ‘machinery and transport equipment’ grew by 20.2% (CZK +17.1 billion) and 22.7% (CZK +13.7 billion), respectively. The highest increases in both exports and imports were registered for ‘office machines and automatic data-processing machines’, ‘road vehicles’ and ‘telecommunications and sound-recording equipment’.
Lower imports of ’mineral fuels, lubricants and related materials’ by 17.5% (CZK -3.0 billion) were mainly due to decreases in imports of crude petroleum (-22.2% in terms of value, -7.8% in terms of volume) and natural gas (-15.1% in terms of value, -13.2% in terms of volume).
By group of countries, trade surplus with EU27 states rose by CZK 10.7 billion and trade deficit with non-EU27 states increased by CZK 1.9 billion. Increases were recorded for trade surplus with Germany (by CZK 4.0 billion), Slovakia (by CZK 2.5 billion) and the United Kingdom (by CZK 1.1 billion); the balance of trade with Norway turned from the deficit of CZK 0.5 billion into a surplus of CZK 0.3 billion and trade deficit with Russia decreased by CZK 1.9 billion. On the other hand, trade deficit grew with China (by CZK 3.6 billion), Japan and Ireland (both by CZK 0.4 billion) and trade surplus fell with France (by CZK 0.8 billion) and the United States (by CZK 0.3 billion).

In the twelve months to February 2007 compared with the previous twelve months, exports and imports grew by 14.7% and 14.3%, respectively. The trade balance reached a surplus of CZK 52.1 billion, which is an improvement of CZK 13.6 billion.
Trade in ‘machinery and transport equipment’ (surplus up by CZK 50.5 billion) and ‘crude materials, inedible, except fuels’ (deficit down by CZK 3.2 billion) had a favourable effect on the balance of trade. Conversely, the trade balance in ‘mineral fuels, lubricants and related materials’ (deficit up by CZK 13.2 billion), ‘manufactured goods classified chiefly by material’ (surplus down by CZK 12.4 billion), ‘chemicals and related products’ (deficit up by CZK 7.6 billion), ‘food and live animals’ (deficit up by CZK 6.1 billion) and ‘miscellaneous manufactured articles‘ (surplus down by CZK 0.5 billion) deteriorated.
By group of countries, trade surplus with EU27 states was higher by CZK 67.8 billion, while trade deficit with non-EU27 states increased by CZK 54.2 billion. Surplus rose in trade with Germany (by CZK 15.3 billion), Slovakia (by CZK 12.7 billion) and Ukraine (by CZK 7.3 billion). Deficit turning into a surplus improved the trade balance with Sweden (by CZK 14.1 billion), Italy (by CZK 8.1 billion) and Switzerland (by CZK 6.3 billion). Conversely, trade deficit grew with China (by CZK 33.2 billion), Taiwan (by CZK 5.9 billion) and Russia (by CZK 4.7 billion), and trade surplus fell with Poland (by CZK 0.4 billion); surplus turning into a deficit deteriorated the trade balance with the United States (by CZK 4.9 billion).

January-February 2007 exports and imports grew by 16.6% and 15.0%, respectively. The trade surplus of CZK 24.6 billion was by CZK 7.7 billion higher year-on-year.

According to the note of the Directorate General of Customs, data were received from 94.5% of the companies obliged to report to the Intrastat system.
Data on companies exempted from the reporting duty (those whose annual value of trade with the EU member states was below CZK 4 million for goods dispatched and below CZK 2 million for goods received) and data on companies that failed to report were imputed. The imputation methods are based on data that the companies supplied in the previous period and on data from tax returns.