External Trade of the Czech Republic

Commentary

External trade in March 2006

According to preliminary data, seasonally adjusted exports increased by 2.4% and imports by 2.8% month-on-month. The trend component rose by 1.2% in exports and by 1.8% in imports.

In terms of year-on-year comparison, exports and imports at current prices were up by 19.5% and 19.3%, respectively. The growth rate of exports was the highest since January 2005; the growth rate of imports was the highest since November 2004. Due to appreciation of the Czech koruna against the euro and depreciation against the US dollar, external trade in euros grew faster (exports +24.2%, imports +24.0%) than in Czech korunas, while exports and imports in US dollars rose slower than in Czech korunas (+13.2% and +13.0%, respectively).
The trade balance ended in a surplus of CZK 9.0 billion, which was by CZK 1.7 billion more than in March 2005. Trade balance with the EU member states was active by CZK 27.5 billion and with the non-EU states passive by CZK 18.5 billion. The balance improved especially in trade in ‘machinery and transport equipment’ (surplus up by CZK 6.7 billion), ‘miscellaneous manufactured articles‘ (surplus up by CZK 2.1 billion) and ‘crude materials, inedible, except fuels’ (deficit down by CZK 0.4 billion). The balance worsened in trade in ’mineral fuels, lubricants and related materials’ (deficit up by CZK 4.4 billion), ‘manufactured goods classified chiefly by material’ (surplus down by CZK 2.1 billion), ‘beverages and tobacco’ (deficit up by CZK 0.7 billion) and ‘chemicals and related products’ (deficit up by CZK 0.6 billion).
The total exports of ‘machinery and transport equipment’ were higher by 27.1% (by CZK 20.9 billion). The highest share in this growth had increases in exports of ‘road vehicles’ (CZK +9.4 billion), ‘office machines and automatic data-processing machines’ (CZK +3.1 billion), ‘electrical machinery, apparatus and appliances’ (CZK +2.7 billion) and ‘general industrial machinery and equipment’ (CZK +1.9 billion). Imports of ‘machinery and transport equipment’ were up by 24.7% (by CZK +14.3 billion) in total, of which most imports of ‘office machines and automatic data-processing machines’ (CZK +3.5 billion), ‘road vehicles’ (CZK +2.8 billion), ‘electrical machinery, apparatus and appliances’ (CZK +2.2 billion) and ‘telecommunications and sound-recording equipment’ (CZK +1.5 billion).
The growth of imports of ‘mineral fuels, lubricants and related materials’ by 43.2% (by CZK 4.8 billion) was mainly influenced by higher imports of crude petroleum (+52.1% in terms of value, +0.8% in terms of volume). Imports of natural gas in terms of value grew by 45.2% while in terms of volume fell by CZK 6.3%. The decrease in surplus in trade in ‘manufactured goods classified chiefly by material’ was influenced mainly by a deterioration of the balance of trade in ‘non-ferrous metals’ (by CZK 1.0 billon) and ‘iron and steel’ (by CZK 0.4 billion).
By group of countries, trade surplus with the EU member states grew by CZK 2.4 billion and trade deficit with the non-EU states increased by CZK 0.7 billion. Balance improved particularly in trade with Ukraine by CZK 3.7 billion, the United Kingdom by CZK 1.7 billion, Belgium by CZK 1.2 billion, Spain by CZK 1.0 billion, Italy by CZK 0.9 billion and Switzerland by CZK 0.6 billion. On the other hand, balance deteriorated in trade with China by CZK 2.3 billion, Poland by CZK 2.3 billion, Japan by CZK 1.2 billion, Taiwan by CZK 0.9 billion, Austria by CZK 0.9 billion, Norway by CZK 0.8 billion and Russia by CZK 0.7 billion. The surplus in trade with Germany remained on the same level as in March 2005 (CZK 7.7 billion).

Over the last twelve months, compared to the preceding twelve months, exports and imports grew by 8.6% and 6.2%, respectively. The trade balance reached a surplus of CZK 41.5 billion, which was an improvement of CZK 43.4 billion.
Trade in ‘machinery and transport equipment’ (surplus up by CZK 70.6 billion), ‘miscellaneous manufactured articles‘ (surplus up by CZK 12.8 billion), ‘crude materials, inedible, except fuels’ (deficit down by CZK 4.2 billion), ‘food and live animals’ (deficit down by CZK 2.9 billion) and ‘chemicals and related products’ (deficit down by CZK 2.7 billion) had a favourable effect on the development of the trade balance. Deficit of trade in ‘mineral fuels, lubricants and related materials’ rose (by CZK 48.7 billion) and surplus of trade in ‘manufactured goods classified chiefly by material’ dropped by CZK 2.3 billion.
By group of countries, trade surplus with the EU member states was higher by CZK 42.6 billion, trade deficit with the non-EU states decreased by CZK 0.8 billion. Balance improved with France by CZK 17.5 billion, the United States by CZK 15.8 billion, the United Kingdom by CZK 15.2 billion, Italy by CZK 12.5 billion, Spain by CZK 10.6 billion, Ukraine by CZK 9.3 billion, Slovakia by CZK 7.1 billion and Belgium by CZK 5.0 billion. Balance deteriorated in trade with Russia by CZK 26.9 billion, the Netherlands by CZK 19.8 billion, China by CZK 12.5 billion, Austria by CZK 6.1 billion, Germany by CZK 4.3 billion, Norway by CZK 3.8 billion and Sweden by CZK 3.5 billion.

January-March 2006 exports and imports grew by 14.3% and 15.0%, respectively. Trade surplus of CZK 27.3 billion was by CZK 1.1 billion higher year-on-year.

According to the note of the Directorate General of Customs, data were received from 94.2% of the companies obliged to report to 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.