External Trade of the Czech Republic
Commentary | Contents |
External trade stagnated in JanuaryExternal trade – February 2004 1/
According to preliminary data, both seasonally adjusted exports and imports increased by 9.8% and 6.7% m-o-m, respectively.
In February, current price exports and imports were 18.4% and 12.8% up remained roughly at the 2003 level 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 +33.8% and imports +27.5%) and slower in terms of euros (exports +14.0% and imports +8.6%) than external trade valued in Czech korunas.
A surplus of CZK 3.6 billion was achieved, as against the deficit of CZK 2.0 billion in February 2003 (last surplus that was higher was recorded in January 1994, in 2003 the balance was favourable only in September and in 2002 only in February). The balance improved both in trade in manufactured products (surplus increased by CZK 4.1 billion, of which trade in ’machinery and transport equipment’ +CZK 4.3 billion, on the other hand deficit of trade in ‘chemicals and related products’ rose by CZK 1.4 billion) and primary products (deficit decreased by CZK 1.5 billion, of which trade in ‘mineral fuels and related materials’ by CZK 1.6 billion).
The growth of exports was particularly influenced by higher exports of telecommunications equipment (+138.3%), general industrial machinery and equipment (+31,6%), manufacture of metals (+24.6%) and electrical machinery, apparatus and appliances (+22.1%). The increase in imports was mainly attributable to higher imports of metalworking machinery (+110,9%), medicinal and pharmaceutical products (+45.5%) and telecommunications equipment (+41.6%).
Higher exports after inward processing (+19.9%) and higher imports for inward processing (+3.4%) were the main contributors to the positive development. Inward processing surplus amounted to CZK 11.2 billion, being CZK 4.9 billion up on February 2003 and CZK 2.8 billion up on the long-term average.
In terms of territory (groups of countries), the largest surplus increases were observed in trade with European countries, of which most with Germany (+CZK 2.6 billion), Slovakia (+CZK 1.2 billion), Austria (+CZK 1.1 billion) and the United Kingdom (+CZK 1.0 billion). Deficit in trade with non-European countries went up, of which most with the United States (by CZK 1.3 billion), China (by CZK 1.3 billion) and Japan (by CZK 0.6 billion).
Over last twelve months, compared with the preceding twelve months, exports were 9.8% up and imports 8.8% up, and the trade gap totalling CZK 63.5 billion was by CZK 6.6 billion lower.
Improvements were recorded especially for the balance of trade in ‘semi-finished products and materials’ – section 6 of classification SITC, Rev. 3 (a CZK 10.7 billion increase in surplus), ‘machinery and transport equipment’ (a CZK 7.2 billion increase in surplus) and ‘food and live animals’ (a CZK 2.0 billion decrease in deficit). Contrary to this, deficit became larger in ‘chemicals and related products’ (by CZK 10.7 billion) and ‘mineral fuels and related materials’ (by CZK 1.4 billion).
In the long term, increases were recorded particularly in trade in ‘chemicals and related products’ (exports +8.7%, imports +11.5%), ‘machinery and transport equipment’ (exports +9.6%, imports +9.4%), ‘miscellaneous consumer articles‘ (exports +9.6%, imports +8.9%) and ‘semi-finished products and materials’ (exports +10.3%, imports +7.0%).
By group of countries, surplus grew most in trade with the EU member states (+CZK 39.8 billion, of which with Austria +CZK 8.7 billion, Germany +CZK 8.0 billion and the Netherlands +CZK 3.9 billion). The deficit rose particularly in trade with developing economies (by CZK 7.7 billion) and China (by CZK 4.1 billion).
January-February 2004 exports and imports increased by 8.7% and 5.9% y-o-y, respectively. The CZK 2.5 billion deficit turned into a surplus of CZK 3.4 billion, mainly due to higher surpluses in trade in ‘semi-finished products and materials’ (+CZK 2.5 billion) and ‘machinery and transport equipment’ (+CZK 2.2 billion) and due to a lower deficit in trade in ‘mineral fuels and related materials’ (by CZK 1.9 billion).
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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