External Trade of the Czech Republic
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External trade – April 2004
External trade turnover grew markedly before the accession to the EU
According to preliminary data, both seasonally adjusted exports and imports increased by 10.5% and 16.6% month-on-month, respectively.
Current price exports and imports were 24.7% and 25.7% up year-on-year, respectively. Due to the appreciation of the Czech koruna against the US dollar and the depreciation against the euro, external trade grew faster in US dollars (exports +34.1% and imports +35.2%) and slower in terms of euros (exports +21.3% and imports +22.3%) than external trade valued in Czech korunas. The development was also influenced by the situation before the accession of the Czech Republic to the EU, particularly by the expected change in administrative regulations and customs tariffs.
The trade balance ended in a deficit of CZK 10.8 billion, which was CZK 3.2 billion up y-o-y. The balance was unfavourably influenced by trade in ‘chemicals and related products’ (deficit increased by CZK 4.6 billion), semi-finished products and materials (surplus decreased by CZK 1.8 billion) and ‘food and live animals’ (deficit increased by CZK 1.4 billion). On the other hand, the balance improved in trade in ’machinery and transport equipment’ (surplus increased by CZK 6.3 billion).
The high dynamics of exports were affected particularly by a more than double rise in exports of ‘telecommunications and sound-recording and reproducing equipment’ and a double rise in exports of computers and parts for computers. High growth of exports after inward processing (+40.2%) contributed to this increase. Imports for inward processing increased by 5.3%. The surplus of inward processing amounted to CZK 20.6 billion, which was CZK 11.5 billion up on April 2003 and CZK 12.1 billion up on the long-term average.
A marked growth was observed in imports of investment machinery, chiefly ‘metalworking machinery’ (+65.2%), ‘general industrial machinery and equipment’ (+39.2%) and ‘power-generating machinery and equipment’ (+39.1%). The high growth rate of total imports was also affected by higher imports of ‘non-ferrous metals’ (+67.4%) and ‘medicinal and pharmaceutical products’ (+49.9%).
In terms of territory (groups of countries), most responsible for the worsening of the trade balance was trade with China (a CZK 3.0 billion increase in deficit), Japan (a CZK 3.0 billion increase in deficit), Russia (a CZK 1.4 billion increase in deficit) and Korea (a CZK 0.9 billion increase in deficit). On the other hand, results improved particularly in trade with the United States (a CZK 1.7 billion decrease in deficit), Thailand (the CZK 0.5 billion deficit turned into a surplus of CZK 1.1 billion), Turkey (the CZK 0.8 billion deficit turned into a surplus of CZK 0.3 billion), Hungary (a CZK 1.1 billion increase in surplus) and Austria (a CZK 0.8 billion increase in surplus).
Over last twelve months, compared with the preceding twelve months, exports were 12.5% up and imports 11.5% up, and the trade gap totalling CZK 69.3 billion was by CZK 4.0 billion lower.
Improvements were recorded especially for the balance of trade in semi-finished products and materials (a CZK 8.3 billion increase in surplus), ‘machinery and transport equipment’ (a CZK 7.9 billion increase in surplus) and ‘mineral fuels and related materials’ (a CZK 4.9 billion decrease in deficit). Contrary to this, the balance deteriorated in trade in ‘chemicals and related products’ (a CZK 15.9 billion increase in deficit).
In the long term, increases were recorded particularly in trade in ‘chemicals and related products’ (exports +9.8%, imports +15.3%), ‘miscellaneous consumer articles‘ (exports +13.5%, imports +12.4%), semi-finished products and materials (exports +13.7%, imports +11.5%) and ‘machinery and transport equipment’ (exports +12.1%, imports +12.2%).
By group of countries, surplus grew most in trade with the EU member states (+CZK 34.5 billion, of which with Germany +CZK 18.7 billion, Austria +CZK 11.2 billion and Belgium +CZK 3.8 billion). The deficit rose particularly in trade with China (by CZK 13.7 billion), Japan (by CZK 9.3 billion) and developing economies (by CZK 7.6 billion).
January-April 2004 exports and imports increased by 15.5% and 15.1% y-o-y, respectively. The trade deficit reached CZK 11.7 billion, which was by CZK 0.1 billion less y-o-y.