External Trade of the Czech Republic

Commentary

Contents

According to preliminary data, seasonally adjusted exports decreased by 0.5% and imports by 4.3% month-on-month. The trend component rose by 2.0% in exports and by 0.3% in imports.

Year-on-year, exports and imports at current prices were up by 12.5% and 11.7%, respectively. Due to the appreciation of the Czech koruna against the euro and especially against the US dollar, external trade grew faster in terms of both euros (exports +17.4%, imports +16.5%) and US dollars (exports +30.8%, imports +29.8%) than external trade in Czech korunas.

The trade balance reached a deficit of CZK 3.2 billion, which was by CZK 0.8 billion better figure than in December 2005. The results were influenced by a lower number of working days (December 2006 had two working days fewer than December 2005).

The trade balance with EU states was active by CZK 20.2 billion and with non-EU states passive by CZK 23.4 billion. Increase in trade surplus in ‘machinery and transport equipment’ by CZK 3.9 billion and decrease in trade deficit in ’mineral fuels, lubricants and related materials’ by CZK 0.7 billion had a positive effect on balance again. Conversely, the balance was negatively affected by the results of trade in ’manufactured goods classified chiefly by material’ (a surplus of CZK 1.3 billion turned into deficit of CZK 0.5 billion; a deterioration of CZK 1.8 billion), ‘chemicals and related products’ (deficit up by CZK 0.8 billion) and ‘miscellaneous manufactured articles‘ (a deterioration of CZK 0.7 billion by turning a surplus of CZK 0.6 billion into a deficit of CZK 0.1 billion).

In ‘machinery and transport equipment’, total exports grew by 18.6% (CZK +14.8 billion). The highest increases in exports were recorded for ‘office machines and automatic data-processing machines’ (CZK +7.8 billion), ‘telecommunications and sound-recording equipment’ (CZK +2.5 billion) and ‘general industrial machinery and equipment’ (CZK +1.5 billion). Exports of ‘road vehicles’ rose only by CZK 0.2 billion). Total imports in ‘machinery and transport equipment’ were up by 16.6 (CZK +10.9 billion), of which most ‘office machines and automatic data-processing machines’ (CZK +5.8 billion), ‘telecommunications and sound-recording equipment’ (CZK +2.4 billion) and ‘road vehicles’ (CZK +1.4 billion).

Imports of mineral fuels fell only by 0.1% mainly due to lower imports of petroleum (-10.5% in terms of value and -4.1% in terms of volume). On the other hand, imports of natural gas rose (+18.2% in terms of value and +13.2 in terms of volume).

By group of countries, trade surplus with EU states rose by CZK 5.1 billion and trade deficit with non-EU states increased by CZK 4.3 billion. Increases were recorded for trade surplus with Germany (by CZK 3.0 billion), the United Kingdom (by CZK 1.3 billion), Slovakia (by CZK 1.0 billion), Sweden (by CZK 1.0 billion) and Poland (by CZK 0.8 billion). Trade deficits with China and Japan grew (by CZK 3.1 billion and CZK 0.5 billion, respectively) and trade surpluses with the United States and Austria decreased by CZK 0.8 billion and 0.4 billion, respectively. Deficit of trade with Russia remained on the same level as in December 2005 (CZK 6.5 billion).

In the year 2006, compared with 2005, exports rose by 14.6% reaching CZK 2 141.1 billion and imports grew by 14.4% reaching CZK 2 093.8 billion. The annual trade balance reached the highest surplus in the history of the Czech Republic amounting to CZK 47.3 billion, which was a CZK 8.7 billion improvement on 2005.
Trade in ‘machinery and transport equipment‘ (a CZK 64.6 billion increase in surplus) was the decisive positive influence on the trade balance development. Trade deficit decreased also in ‘crude materials, inedible, except fuels’ by CZK 1.6 billion. Conversely, balance deteriorated in trade in ‘mineral fuels, lubricants and related materials‘ (deficit up by CZK 28.7 billion), ‘manufactured goods classified chiefly by material’ (surplus down by CZK 12.9 billion), ‘chemicals and related products’ (deficit up by CZK 7.2 billion), ‘food and live animals’ (deficit up by CZK 5.2 billion) and ‘miscellaneous manufactured articles‘ (surplus down by CZK 2.7 billion).

By group of countries, trade surplus with EU states was higher by CZK 58.5 billion, while trade deficit with non-EU states increased by CZK 49.8 billion. Deficit turning into a surplus improved the trade balance with Sweden (by CZK 14.7 billion, effect of last year’s imports of Jas-Gripen fighters) and Italy (by CZK 10.5 billion). Increases were registered for trade surplus with France (by CZK 11.3 billion), Germany (by CZK 8.9 billion), Slovakia (by CZK 8.7 billion), Ukraine (by CZK 7.9 billion), Belgium (by CZK 6.9 billion) and the United Kingdom (by CZK 6.2 billion). Conversely, trade deficit grew with China (by CZK 31.9 billion), Russia (by CZK 12.4 billion), Taiwan (by CZK 6.9 billion) and Japan (by CZK 3.7 billion). Trade surpluses with Poland and the United States fell (by CZK 7.9 billion and 3.0 billion, respectively).





According to the note of the Directorate General of Customs, data were received from 96.2% of the companies obliged to report to the Intrastat system.
Data on 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 on companies that failed to report were imputed. The imputation methods are based on data that the companies supplied in the previous period.