External Trade of the Czech Republic

Commentary

External trade – January 2004 ¹ /

According to preliminary data, seasonally adjusted exports were 3.2% down and imports 3.1% down m-o-m.

In January, current price external trade was slightly lower remained roughly at the 2003 level (exports byfell 0.7% and imports bywent down 1.0% year-on-year). Both exports and imports went down for the last time in November 2002. Due to the appreciation of the Czech koruna against the US dollar and the depreciation against the euro, external trade grew in terms of US dollars (exports 13.4% up and imports 13.2% up) and dropped in terms of euros (exports 4.5% down and imports 4.7% down).
Like in January 2003, trade balance ended in a very low deficit of CZK 0.2 billion, which amounts to a y-o-y deficit decrease of CZK 0.3 billion. The balance improved in trade in manufactured products (a CZK 1.0 billion increase in the surplus), due to increases in the surplus of trade in ‘manufactured goods classified chiefly by material’ (+CZK 1.7 billion) and ‘miscellaneous consumer articles‘ (+CZK 1.1 billion) and a decrease in the deficit of trade in ‘chemicals and related products’ (-CZK 0.3 billion). On the other hand, unfavourable development was seen in trade in ’machinery and transport equipment’ (a CZK 2.1 billion decrease in the surplus). The balance of trade in primary products worsened (a CZK 0.7 billion increase in the deficit), of which mostly in trade in crude materials (the CZK 0.2 billion surplus turned into a deficit of CZK 0.5 billion).
The drop in exports of ’machinery and transport equipment’ (-8.4%) was mainly influenced by lower exports of computers (-38.7%) and passenger cars (-16.5%). The decrease in imports of machines (-5.8%) was particularly attributable to lower imports of power-generating machinery and equipment (-14.3%), electrical machinery, apparatus and appliances (-11.0%) and computers (-10.6%).
Exports after inward processing fell 17.4% and imports for inward processing dropped 13.8%. Inward processing surplus amounted to CZK 5.4 billion, being CZK 2.2 billion down on January 2003 and CZK 3.0 billion down on the long-term average.
In terms of territory (groups of countries), improvements were recorded mainly for the balance of trade with Germany (a CZK 2.5 billion increase in the surplus), Slovakia (a CZK 0.9 billion increase in the surplus), Turkey (the CZK 0.1 billion deficit turned into a surplus of CZK 0.5 billion) and Malaysia (a CZK 0.6 billion decrease in the deficit). The balance deteriorated most in trade with the United Kingdom (a CZK 1.0 billion decrease in the surplus), the United States (a CZK 0.9 billion increase in the deficit), the Netherlands (a CZK 0.8 billion decrease in the surplus) and Hungary (a CZK 0.7 billion decrease in the surplus).

Over last twelve months, compared with the preceding twelve months, exports were 8.4% up and imports 8.3% up, and the trade gap totalling CZK 69.1 billion grew by CZK 3.8 billion.
In the long term, increases were recorded particularly in trade in ‘chemicals and related products’ (exports by 8.3%, imports by 10.1%), ‘machinery and transport equipment’ (exports by 8.3%, imports by 9.1%) and ‘miscellaneous consumer articles‘ (exports by 8.4%, imports by 8.3%).
By group pf countries, the surplus of trade with the EU member states grew by CZK 35,0 billion (of which with Austria +CZK 11.6 billion, Germany +CZK 10.7 billion and the Netherlands +CZK 5.4 billion). The deficit rose in trade with developing economies (+CZK 11.3 billion), China (+CZK 10.2 billion) and Russia (+CZK 4.7 billion).

Note
The January 2004 data, referring to 17 February 2004 closing date.

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