External Trade of the Czech Republic

Commentary

According to preliminary data, seasonally adjusted exports decreased by 0.1% and imports grew by 2.8% month-on-month. The trend component rose by 1.5% in exports and by 2.2% in imports. The trend in exports has been virtually stagnating since May 2006 while the trend in imports has been rising for the last three months.

Year-on-year, exports and imports at current prices were up by 19.8% and 19.2%, respectively, and values of exports and imports reached the highest level ever recorded. Due to the appreciation of the Czech koruna against the euro and especially against the US dollar, exports and imports grew faster in terms of both US dollars (exports +32.0%, imports +31.3%) and euros (exports +25.7%, imports +25.0%) than external trade in Czech korunas.

The trade balance reached a surplus of CZK 4.4 billion, which was by CZK 1.6 billion more year-on-year. Trade balance with the EU member states was active by CZK 31.3 billion and with the non-EU states passive by CZK 26.9 billion. Increase in trade surplus in ‘machinery and transport equipment’ by CZK 2.4 billion and decrease in trade deficit in ’mineral fuels, lubricants and related materials’ by CZK 1.7 billion contributed most to the growth of trade surplus. Deficit of trade in ‘mineral fuels, lubricants and related materials’ fell for the first time since November 2004. The balance was negatively affected by the results of trade in ‘chemicals and related products’ (deficit up by CZK 1.7 billion) and ‘food and live animals’ (deficit up by CZK 0.9 billion).
High growth of exports (+21.7%) and particularly of imports (+24.8 %) was recorded for ‘machinery and transport equipment’. Exports and imports grew, in particular exports and imports of these commodities: ‘office machines and automatic data-processing machines’, ‘telecommunications and sound-recording equipment’, ‘general industrial machinery and equipment’, ‘road vehicles’ and ‘electrical machinery, apparatus and appliances’. ‘Road vehicles’ (+CZK 2.4 billion) had the main effect on the growth of trade balance surplus.
Lower imports of mineral fuels by 10.7% (CZK 1.8 billion) were mainly due to decreases in imports of natural gas (-8.6% in terms of value and -20.1 in terms of volume) and petroleum (-7.1% in terms of value and -5.8% in terms of volume).
By group of countries, trade surplus with the EU member states rose by CZK 5.0 billion and trade deficit with the non-EU states increased by CZK 3.4 billion. Surplus was up in trade with Slovakia by CZK 2.0 billion, France by CZK 1.1 billion, Germany and Belgium (both by CZK 0.9 billion), trade deficit with Italy turned into surplus (improvement of CZK 1.4 billion) and trade deficit with Russia fell by CZK 1.8 billion. Trade deficit grew with China by CZK 3.9 billion and Taiwan by CZK 0.5 billion, trade surplus with the Netherlands and the United States turned into deficit (deterioration of CZK 1.9 billion and CZK 1.2 billion, respectively).

Over last twelve months, compared to the preceding twelve months, exports and imports grew by 13.8% and 13.4%, respectively. The trade balance reached a surplus of CZK 42.5 billion, which represents an improvement of CZK 11.7 billion.
Trade in ‘machinery and transport equipment’ (surplus up by CZK 71.3 billion), ‘crude materials, inedible, except fuels’ (deficit down by CZK 2.1 billion), ‘miscellaneous manufactured articles‘ (surplus up by CZK 2.0 billion) and ‘beverages and tobacco’ (deficit down by CZK 0.5 billion) had a favourable effect on the development of the trade balance. On the other hand, balance deteriorated in trade in ‘mineral fuels, lubricants and related materials’ (deficit up by CZK 41.6 billion), ‘manufactured goods classified chiefly by material’ (surplus down by CZK 14.2 billion) and ‘chemicals and related products’ (deficit up by CZK 5.8 billion).
By group of countries, trade surplus with the EU member states was higher by CZK 58.3 billion, while trade deficit with the non-EU states increased by CZK 46.6 billion. The turn of deficit into a surplus improved the balance with Sweden by CZK 13.9 billion (effect of last year’s imports of Jas-Gripen fighters), Italy by CZK 12.9 billion and Ukraine by CZK 9.1 billion. Surplus rose in trade with France by CZK 12.2 billion, Belgium by CZK 8.7 billion, the United Kingdom by CZK 6.9 billion and Germany by CZK 1.6 billion; on the other hand, trade surplus fell with Poland by CZK 10.3 billion. Growth of trade deficits resulted in deterioration of trade balance with China by CZK 30.4 billion, Russia by CZK 20.3 billion, Taiwan by CZK 6.8 billion, Japan by CZK 3.6 billion and Malaysia by CZK 3.0 billion.
January-October 2006 exports and imports grew by 14.6% and 14.7%, respectively. The trade surplus of CZK 44.1 billion was thus by CZK 3.9 billion higher year-on-year.

The CZSO has carried out the regular quaterly update. According to the updated figures, the trade balance surplus fell by CZK 0.5 billion to CZK 26.9 billion in the first quarter of 2006, decreased by CZK 2.0 billion to CZK 7.7 billion in the second quarter of 2006 and rose by CZK 0.9 billion to CZK 5.1 billion in the third quarter of 2006. As a result, the trade balance surplus fell by CZK 1.6 billion to CZK 39.72 billion in the 1st-3rd quarters of 2006.

According to the updated figures, the trade balance surplus fell by CZK 0.5 billion to CZK 26.9 billion in the first quarter of 2006, decreased by CZK 2.0 billion to CZK 7.7 billion in the second quarter of 2006 and rose by CZK 0.9 billion to CZK 5.1 billion in the third quarter of 2006. As a result, the trade balance surplus fell by CZK 1.6 billion to CZK 39.72 billion in the 1st-3rd quarters of 2006.

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According to the note of the Directorate General of Customs, data were received from 94.8% 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.