External Trade of the Czech Republic

Commentary

Contents

According to preliminary data, seasonally adjusted exports decreased by 1.5% and imports by 4.0% month-on-month. The trend component rose by 0.2% in exports and fell by 0.4% in imports (Table 6, Graphs 1 and 2).

In terms of year-on-year comparison, exports and imports at current prices were up by 7.8% and 3.4%, respectively. Due to appreciation of the Czech koruna against the euro and depreciation against the US dollar, external trade grew faster in terms of euros (exports +14.1%, imports +9.4%) than external trade in Czech korunas, while in US dollars exports rose only by 0.9% and imports fell by 3.2%.
The trade balance ended in a deficit of CZK 3.9 billion, which was a by CZK 5.7 billion better result than in December 2004. This is the lowest December trade deficit in the history of the Czech Republic. Trade balance with the EU member states was active by CZK 14.1 billion and with the non-EU states passive by CZK 18.0 billion.
The improvement of the balance was most markedly contributed to by a CZK 7.5 billion increase in surplus of trade in ‘machinery and transport equipment’. Trade deficit dropped in ‘crude materials, inedible, except fuels‘ by CZK 1.2 billion and in ‘food and live animals‘ by CZK 1.0 billion. The trade deficit in ‘miscellaneous manufactured articles‘ of CZK 0.8 billion turned into a surplus of CZK 0.2 billion. Trade in ’mineral fuels, lubricants and related materials’ (deficit up by CZK 4.0 billion) and ’manufactured goods classified chiefly by material’ (surplus down by CZK 1.5 billion) affected the balance unfavourably.
The total exports of ‘machinery and transport equipment’ were higher by 9.5%. The highest share in this growth had increases in exports of ‘road vehicles’, ‘office machines and automatic data-processing machines’, and ‘general industrial machinery and equipment’. On the other hand, exports of ‘metalworking machinery’ and ‘telecommunications and sound-recording equipment’ dropped. Imports of ‘machinery and transport equipment’ were down by 1.0% in total, of which most imports of ‘machinery specialized for particular industries’ and ‘road vehicles’. Imports of ‘office machines and automatic data-processing machines’ increased.
The growth of imports of ‘mineral fuels, lubricants and related materials’ by 41.6% was mainly influenced by higher imports of crude petroleum (+40.3% in terms of value, +5.3% in terms of volume) and natural gas (+70.0% in terms of value, +12.6% in terms of volume).
By group of countries, trade surplus with the EU member states grew by CZK 4.2 billion and trade deficit with the non-EU states decreased by CZK 1.5 billion. Balance improved particularly in trade with Italy by CZK 1.8 billion, the United States by CZK 1.5 billion, France by CZK 1.3 billion and the Ukraine by CZK 1.0 billion. Balance deteriorated in trade with China by CZK 1.9 billion, Russia by CZK 1.4 billion, the Netherlands by CZK 1.1 billion and Germany by CZK 1.1 billion.

In the year 2005, compared with 2004, exports rose by 8.6% reaching CZK 1 871.4 billion and imports grew by 4.6% reaching CZK 1 829.6 billion. For the first time in the history of the Czech Republic, the annual trade balance was a surplus, which amounted to CZK 41.9 billion, i.e. an improvement of CZK 68.3 billion on 2004.
Trade in ‘machinery and transport equipment‘ (a CZK 82.3 billion increase in surplus) was the decisive positive influence on the trade balance development. Trade surplus rose also in ’manufactured goods classified chiefly by material’ (by CZK 6.8 billion) and ‘miscellaneous manufactured articles‘ (by CZK 6.3 billion). Trade deficit in ‘chemicals and related products’ decreased by CZK 5.3 billion. Conversely, increase in trade deficit in ‘mineral fuels, lubricants and related materials‘ by CZK 40.2 billion affected the balance unfavourably.
By group of countries, trade surplus with the EU member states was higher by CZK 56.8 billion, trade deficit with the non-EU states decreased by CZK 11.5 billion. Balance improved with France by CZK 20,8 billion, the United States by CZK 16.1 billion, Slovakia by CZK 12.3 billion, Italy by CZK 10.6 billion, Spain by CZK 9.6 billion, the United Kingdom by CZK 9.3 billion, Poland by CZK 5.0 billion, Germany by CZK 4.8 billion and Malaysia by CZK 4.4 billion. Balance deteriorated in trade with the Netherlands by CZK 23.8 billion, Russia by CZK 22.4 billion, Austria by CZK 3.6 billion, China by CZK 3.4 billion, Turkey by CZK 3.4 billion and Sweden by CZK 2.4 billion.






_____________

According to the note of the Directorate General of Customs, data were received from 96.1% of the companies obliged to report within the Intrastat system.
Data for companies exempted from the reporting duty (those 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 companies supplied in the previous period. As to the December data, the share of the imputed value was 1.9% in total exports and 1.6% in total imports.