External Trade of the Czech Republic
Commentary | Contents |
External trade – May 2004
External trade kept on growing considerably after joining the EU
According to preliminary data, seasonally adjusted exports increased by 3.4% and imports fell by 6.9% month-on-month.
In terms of year-on-year comparison, current price exports and imports were 33.9% and 32.1% up, respectively. Due to appreciation of the Czech koruna against the US dollar and depreciation against the euro, external trade grew faster in US dollars (exports +36.2% and imports +34.4%) and slower in terms of euros (exports +31.4% and imports +29.7%) than external trade valued in Czech korunas. The development and structure of external trade was influenced by the Czech Republic’s full involvement in the single market within the enlarged EU. At the same time, the system of collecting data on the decisive part of external trade changed principally. The Intrastat system was able to produce 86% of exports data and 83% of imports data.
External trade ran a deficit of CZK 0.9 bn, which was by CZK 1.3 bn less than in May 2003. The balance was favourably influenced by trade in machinery and transport equipment (surplus increased by CZK 9.5 bn), whereas the balance of trade in miscellaneous consumer articles deteriorated (the CZK 1.7 bn surplus turned into a deficit of CZK 1.6 bn).
Exports of products of mechanical engineering rose markedly (+58.4%), of which particularly telecommunications equipment and computers. Simultaneously, imports of machinery and transport equipment grew (+46.5%), of which most imports of electrical equipment and appliances and industrial machinery and equipment. Imports of miscellaneous consumer articles grew too (+35.9%).
In terms of territory (groups of countries), the structure is strongly affected by the reporting of data under the Intrastat system, where particularly imports from the EU countries include a large part of goods originating elsewhere. The balance of trade with the EU member states was active by only CZK 0.7 bn, and deficit in trade with Germany reached CZK 12.9 bn. On the other hand, highly active was the balance of trade with the other developed market economies (CZK 2.0 bn), European transition economies (CZK 2.2 bn), and even with developing economies (CZK 1.3 bn). Debit balance remains in trade with China (CZK 2.4 bn) and Russia (CZK 4.6 bn).
Over last twelve months, compared with the preceding twelve months, exports rose by 14.7% and imports by 14.3% up, and the trade gap totalling CZK 68.0 bn was by CZK 3.7 bn higher.
Improvements were recorded especially for trade in machinery and transport equipment (a CZK 9.3 bn increase in surplus). Contrary to this, the balance deteriorated in trade in chemicals and related products (a CZK 17.0 bn increase in deficit) and miscellaneous consumer articles (a CZK 1.0 bn decrease in surplus).
In the long term, increases were recorded particularly in trade in machinery and transport equipment (exports +16.2% and imports +16.8%), miscellaneous consumer articles (exports +13.4% and imports +14.8%) and chemicals and related products (exports +10.4%, imports +16.4%).
By group of countries, surplus grew most in trade with the EU member states (+CZK 22.9 bn, of which with Slovakia +CZK 9.9 bn, Austria +CZK 7.7 bn and Belgium +CZK 2.7 bn). The deficit rose particularly in trade with China (by CZK 10.7 bn) and Japan (by CZK 8.2 bn).
January-May 2004 exports and imports increased by 19.2% and 18.5% y-o-y, respectively. The trade deficit reached CZK 12.6 bn, which was by CZK 1.4 bn less y-o-y.