External Trade of the Czech Republic
Commentary | Contents |
External trade in December 2004
According to preliminary data, both exports and imports seasonally adjusted fell by 5.5% and 8.9% month-on-month, respectively.
In terms of year-on-year comparison, current price exports rose by 18.5% and imports increased by only 6.4%, which is the lowest y-o-y growth of imports since January 2004. External trade grew faster both in terms of US dollars (exports +36.4% and imports +22.5%) and in terms of euros (exports +25.0% and imports +12.2%) than external trade valued in Czech korunas.
The trade balance ended in a deficit of CZK 7.6 billion, which amounts to a y-o-y decrease of CZK 12.3 billion. This is the most favourable trade balance recorded in December over the last ten years. Trade balance with the EU member states reached a surplus of CZK 10.9 billion, trade balance with non-EU states ended in a deficit of CZK 18.5 billion. Trade balance improved in ’machinery and transport equipment’ (surplus rose by CZK 9.8 billion), in ‘manufactured goods classified chiefly by material’ (deficit of CZK 0.2 billion turned into a surplus of CZK 2.8 billion) and in ‘chemicals and related products’ (deficit decreased by CZK 1.7 billion). Deficit worsened in trade in ‘miscellaneous manufactured articles‘ by CZK 0.8 billion and in trade in ’mineral fuels, lubricants and related materials’ by CZK 0.3 billion.
The dynamics of growing imports slowed down, compared to the annual average rate, especially in ’machinery and transport equipment’ to 2.2% (16.2%), in ‘chemicals and related products’ to 4.5% (16.5%) and in ‘manufactured goods classified chiefly by material’ to 7.5% (24.7%). Particularly, imports of telecommunications and sound-recording equipment, general industrial machinery and equipment and electrical machinery, apparatus and appliances came down. Unlike food and consumer goods, the marked fall in growth rate of imports was thus noticeable especially in products for further manufacturing and in investment goods.
The growth of exports was mainly influenced by higher exports of ’machinery and transport equipment’ (road vehicles, general industrial machinery and equipment and telecommunications and sound-recording equipment), ‘chemicals and related products’ (plastics and inorganic chemicals) and ‘manufactured goods classified chiefly by material’ (iron and steel).
By group of countries, the balance of external trade with the EU member states reached a CZK 7.9 billion increase in surplus, particularly in trade with Germany (by CZK 4.8 billion), Slovakia (by CZK 2.7 billion) and Hungary (by CZK 1.4 billion). Deficit of trade with non-EU states decreased by CZK 4.4 billion y-o-y, most in trade with China (by CZK 1.1 billion) and Russia (by CZK 0.8 billion).
In the year 2004, compared with 2003, exports rose by 23.8% and reached CZK 1 696.7 billion, and imports grew by 19.2% and reached CZK 1 717.3 billion. Trade gap totalling CZK 20.6 billion was CZK 49.2 billion down on the year 2003 and the lowest one since 1993.
The decisive favourable effect on development of the trade balance had trade in ‘machinery and transport equipment‘ (a CZK 69.4 billion increase in surplus). On the other hand, surplus was lower in trade in ‘miscellaneous manufactured articles‘ (by CZK 4.8 billion), and higher deficits were recorded in trade in ‘mineral fuels, lubricants and related materials‘ (by CZK 3.5 billion), ‘crude materials, inedible, except fuels‘ (by CZK 3.1 billion) and ‘chemicals and related products’ (by CZK 2.5 billion).
By group of countries, surplus of trade with the EU member states was higher by CZK 64.9 billion, particularly in trade with Germany (by CZK 37.4 billion), Slovakia (by CZK 17.1 billion), Hungary (by CZK 9.8 billion) and Belgium (by CZK 9.7 billion). Conversely, surplus decreased in trade with the United Kingdom (by CZK 5.0 billion). Deficit of trade with non-EU states rose by CZK 15.7 billion, especially in trade with Japan (by CZK 20.9 billion), China (by CZK 12.4 billion) and the United States (by CZK 3.7 billion). On the other hand, trade deficit decreased with Malaysia (by CZK 4.3 billion), Turkey (by CZK 3.2 billion) and Russia (by CZK 2.7 billion).
After the accession of the Czech Republic to the EU, exports and imports grew by 27.4% and 20.8% on average, respectively, compared to 16.3% and 15.8%, respectively, in January to April 2004.
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According to the communication from the Directorate General of Customs, data were received from 96.4% of the total of 20 439 companies obliged to report to the Intrastat system. As far as large companies are concerned (those whose annual value of exports to or imports from the EU member states exceeded CZK 100 million in 2003), the response rate was 98.5% from among the total number of 2 465 companies.
Data for companies exempted from reporting duty (whose annual value of trade with the EU member states was below CZK 4 million for goods dispatched and below CZK 2 million for goods received) and data for companies that failed to report were imputed. The imputation methods are based on data that firms supplied in the previous period. As to the December data, the share of imputed value in total exports was 2.0% and in total imports 2.0%.