External Trade of the Czech Republic

Commentary

External trade in January 2006

According to preliminary data, seasonally adjusted exports increased by 2.4% and imports by 4.4% month-on-month. The trend component rose by 0.8% in exports and by 1.3% in imports.

In terms of year-on-year comparison, exports and imports at current prices were up by 11.2% and 12.8%, respectively. The growth rate of imports was higher than the growth rate of exports for the first time since April 2004 when high growth of imports was influenced by the subsequent accession of the CR to the EU. Due to appreciation of the Czech koruna against the euro and depreciation against the US dollar, external trade in euros grew faster (exports +17.4%, imports +19.1%) than in Czech korunas, while exports and imports in US dollars rose slower than in Czech korunas (+8.3% and +9.8%, respectively).
The trade balance ended in a surplus of CZK 11.2 billion, which was by CZK 0.7 billion down year-on-year. This is the highest monthly surplus since January 2005. Trade balance with the EU member states was active by CZK 33.3 billion and with the non-EU states passive by CZK 22.1 billion.
The improvement of the balance was mainly contributed to by a CZK 5.4 billion increase in surplus of trade in ‘machinery and transport equipment’. Trade surplus in ‘miscellaneous manufactured articles‘ rose by CZK 1.0 billion and trade deficit in ‘crude materials, inedible, except fuels‘ dropped by CZK 0.6 billion. Trade in ’mineral fuels, lubricants and related materials’ (deficit up by CZK 5.6 billion), ’manufactured goods classified chiefly by material’ (surplus down by CZK 1.6 billion) and ‘chemicals and related products’ (deficit up by CZK 0.6 billion) affected the balance unfavourably.
The total exports of ‘machinery and transport equipment’ were higher by 18,9% (CZK 13.5 billion). The highest share in this growth had increases in exports of ‘road vehicles’ (CZK +7.2 billion), ‘office machines and automatic data-processing machines’ (CZK +5.1 billion) and ‘power-generating machinery and equipment’ (CZK +0.5 billion). On the other hand, exports of ‘general industrial machinery and equipment’ fell. Imports of ‘machinery and transport equipment’ were up by 16.6% (CZK +8.2 billion) in total, of which most imports of ‘electrical machinery, apparatus and appliances’ (CZK +2.1 billion) and ‘office machines and automatic data-processing machines’ (CZK +1.6 billion).
The growth of imports of ‘mineral fuels, lubricants and related materials’ by 59.4% (CZK 6.0 billion) was mainly influenced by higher imports of crude petroleum (+46.7% in terms of value, +1.2% in terms of volume) and natural gas (+82,6% in terms of value, +12.5% in terms of volume).
By group of countries, trade surplus with the EU member states grew by CZK 2.6 billion and trade deficit with the non-EU states increased by CZK 3.3 billion. Balance improved particularly in trade with Spain by CZK 1.6 billion, France by CZK 1.5 billion, the United Kingdom by CZK 1.4 billion, Italy by CZK 1.3 billion, the United States by CZK 1.2 billion, Belgium by CZK 0.7 billion and the Ukraine by CZK 0.7 billion. Unfavourable balance development continued especially in trade with Russia (deficit up by CZK 3.7 billion), China (deficit up by CZK 2.2 billion) and with Germany as well (surplus down by CZK 1.6 billion). Balance deteriorated also in trade with Austria by CZK 1.0 billion, Japan by CZK 0.7 billion and Slovakia by 0.6 billion.

Over last twelve months, compared to the preceding twelve months, exports and imports grew by 7.7% and 4.6%, respectively. The trade balance reached a surplus of CZK 39.7 billion, which was an improvement of CZK 54.3 billion.
Trade in ‘machinery and transport equipment’ (surplus up by CZK 72.5 billion), ‘miscellaneous manufactured articles‘ (surplus up by CZK 9.8 billion), ‘chemicals and related products’ (deficit down by CZK 5.8 billion) and ‘manufactured goods classified chiefly by material’ (surplus up by CZK 4.9 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 45.1 billion).
By group of countries, trade surplus with the EU member states was higher by CZK 46.9 billion, trade deficit with the non-EU states decreased by CZK 7.4 billion. Balance improved with France by CZK 19.5 billion, the United States by CZK 17.5 billion, Italy by CZK 11.8 billion, the United Kingdom by CZK 10.7 billion, Spain by CZK 10.2 billion, Slovakia by CZK 10.0 billion, Malaysia by CZK 4.2 billion, Poland by CZK 4.0 billion, the Ukraine by CZK 4.0 billion, Japan by CZK 3.9 billion and Germany by CZK 3.1 billion. Balance deteriorated in trade with Russia by CZK 28.8 billion, the Netherlands by CZK 27.4 billion, China by CZK 6.2 billion, Austria by CZK 5.0 billion, Turkey by CZK 2.8 billion and Norway by CZK 2.5 billion.

The CZSO has carried out the regular quarterly update. According to the updated figures, the 2005 trade surplus amounted to CZK 40.4 billion (down by CZK 1.5 billion).

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According to the note of the Directorate General of Customs, data were received from 95.5% 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.