External Trade of the Czech Republic
Commentary | Contents |
External trade – December 2003 1/
According to preliminary data, seasonally adjusted exports were 4.1% up and imports 2.5% up m-o-m.
Current price exports rose by 21.7% and imports by 20.9% year-on-year, which was the highest y-o-y growth since April 2001. Due to the appreciation of the Czech koruna against the US dollar and the depreciation against the euro, external trade grew markedly faster in terms of US dollars (exports 41.8% up and imports 40.9% up) and slower in euros (exports by 17.5% and imports by 16.8%) than in Czech korunas.
Trade balance ended in a deficit of CZK 19.8 billion, which amounts to a y-o-y deficit increase of CZK 2.8 billion. The balance deteriorated both in trade in manufactured products (a CZK 1.4 billion increase in deficit, of which CZK 2.2 billion in trade in ‘chemicals and related products’) and in trade in primary products (a CZK 1.3 billion increase in deficit, of which CZK 0.6 in trade in ‘crude materials, inedible, except fuels’). A positive impact on the trade balance was exercised by lower deficits in trade in ‘manufactured goods classified chiefly by material’ (by CZK 0.8 billion) and ‘miscellaneous consumer articles‘ (by CZK 0.4 billion).
High exports dynamics was affected particularly by a more than triple rise in exports of ‘parts for office and automatic data-processing machines’. Exports of ‘electrical machinery, apparatus and appliances’ grew by nearly a half and exports of ‘parts and accessories of motor vehicles’ by a third. High imports dynamics was influenced by a rise in imports of ‘medicinal and pharmaceutical products’ by nearly a half. Exports of crude oil released into free circulation went up by a third.
Exports after inward processing grew by 23.1% and imports for inward processing went up 12.0%. Inward processing surplus amounted to CZK 10.3 billion, being CZK 3.7 billion up on December 2002.
Broken down by territory, the balance particularly deteriorated in trade with China (a CZK 2.0 billion increase in deficit), Japan (a CZK 1.1 billion increase in deficit), Hungary (the CZK 0.3 billion surplus turned into a deficit of CZK 0.4 billion) and Ireland (a CZK 0.6 billion increase in deficit). On the other hand, the largest improvements were observed in trade with Austria (a CZK 1.3 billion increase in surplus), Germany (a CZK 0.8 billion decrease in deficit), Slovakia (a CZK 0.7 billion increase in surplus) and the United Kingdom (a CZK 0.5 billion increase in surplus).
In the year 2003 current price exports rose by 9.3%, reaching CZK 1 371.4 billion, and imports grew by 8.8%, reaching CZK 1 442.6 billion, y-o-y. The total trade gap amounting to CZK 71.2 billion was CZK 0.1 billion down on the year 2002; the deficit was by CZK 5.0 billion lower in the first quarter of 2003 and by CZK 4.2 billion higher in the fourth quarter, all y-o-y. Due to different trends in the exchange rates of the Czech koruna against the US dollar and the euro, external trade grew faster in terms of US dollars (exports 26.6% up and imports 25.9% up) and slower in terms of euros (exports 5.7% up and imports 5.2% up) than external trade valued in Czech korunas.
Improvements were recorded for the balance of trade in manufactured products (a CZK 4.9 billion increase in surplus, of which CZK 9.6 billion in trade in ‘machinery and transport equipment’ and CZK 6.2 billion in ‘manufactured goods classified chiefly by material’; at the same time, however, the deficit became larger in trade in ‘chemicals and related products’ by CZK 10.2 billion). The deficit in trade in primary products rose (by CZK 4.6 billion) primarily due to a higher deficit in trade in crude oil and natural gas (by CZK 5.8 billion).
In the year 2003, exports after inward processing reached CZK 368.8 billion (+0.8%) and their share in total exports decreased to 26.9%. Imports for inward processing were CZK 267.4 billion (+1.5%) and their share in total imports decreased to 18.5%. The balance of inward processing reached a surplus of CZK 101.4 billion, which was by CZK 1.2 billion less y-o-y.
In terms of territory, the surplus grew particularly in trade with the EU member states (+CZK 43.3 billion, of which +CZK 11.9 billion with Austria, +CZK 10.9 billion with Germany, +CZK 7.4 billion with the Netherlands, and +CZK 3.5 billion with the United Kingdom) and in trade with Slovakia (+CZK 7.1). The deficit rose mainly in trade with developing economies (by CZK 13.7 billion), China (by CZK 11.9 billion), Russia (by CZK 6.0 billion) and Japan (by CZK 5.5 billion).
Note
The December 2003 data, referring to 19 January 2004 closing date, are preliminary.
1/ Starting with 1 July 2000, the Czech Statistical Office made a methodological adjustment to external trade statistics, which excludes mainly the following items from external trade:
the value of ships and aircraft imported for the purpose of inward processing and exported after inward processing
the value of ships and aircraft exported for the purpose of outward processing and imported after outward processing
the value of returned goods, i.e. goods that have come back in the same state into the free circulation regime within three years after their export from the Czech Republic
the value of exported goods, the purpose of which is other than leaving the goods permanently abroad, and re-import is supposed
monetary gold