External Trade of the Czech Republic

Commentary

External trade in August 2006

According to preliminary data, seasonally adjusted exports decreased by 1.4% while imports grew by 4.5% month-on-month. The trend component rose by 1.4% in exports and fell by 0.1% in imports.

Year-on-year, exports and imports at current prices were up by 8.9% and 7.1%, respectively. The lowest growth rates of exports and imports since April 2006 were recorded. Due to the appreciation of the Czech koruna against the euro and against the US dollar, external trade grew faster in terms of both euros (exports +14.3%, imports +12.4%) and US dollars (exports +19.1%, imports +17.2%) than external trade in Czech korunas.
The trade balance ended in a deficit of CZK 2.1 billion, which was by CZK 2.4 billion less year-on-year. However, trade balance in August 2005 was exceptionally influenced by imports of Jas-Gripen fighters valued at CZK 5.9 billion. Trade balance with the EU member states was active by CZK 23.5 billion and with the non-EU states passive by CZK 25.6 billion.
The balance improved only in trade in ‘machinery and transport equipment’ (surplus up by CZK 6.2 billion) and ‘beverages and tobacco’ (surplus up by CZK 0.1 billion). In particular, the balance was negatively affected by the results of trade in ’mineral fuels, lubricants and related materials’ (deficit up by CZK 1.8 billion), ‘manufactured goods classified chiefly by material’ (surplus down by CZK 1.1 billion), ‘food and live animals’ (deficit up by CZK 0.5 billion) and ‘chemicals and related products’ (deficit up by CZK 0.2 billion).
Total exports of ‘machinery and transport equipment’ increased by 10.9% (CZK +8.0 billion) while total imports of these commodities grew by only 2.8% (CZK +1.7 billion). Increases were registered especially for exports of ‘office machines and automatic data-processing machines’ (CZK +2.5 billion), ‘electrical machinery, apparatus and equipment’ (CZK +1.7 billion) and ‘general industrial machinery and equipment’ (CZK +1.2 billion). Exports of ‘road vehicles’ grew only by 1.4% (active balance dropped by CZK 0.7 billion).
The higher imports of ‘mineral fuels, lubricants and related materials’ by 12.0% (CZK +1.9 billion) were mainly influenced by imports of natural gas (+30.2% in terms of value, +13.6% in terms of volume). Imports of crude petroleum increased by 12.5% in terms of value and dropped by 1.5% in terms of volume.
By group of countries, trade surplus with the EU member states rose by CZK 8.3 billion and trade deficit with the non-EU states increased by CZK 5.9 billion. Balance improved particularly in trade with Sweden (by CZK 6.1 billion; effect of import of Jas-Gripen fighters in 2005), Italy (by CZK 1.3 billion), the Netherlands (by CZK 1.1 billion), Slovakia (by CZK 0.9 billion), Switzerland (by CZK 0.9 billion) and Germany (by CZK 0.4 billion). On the other hand, balance deteriorated in trade with China (by CZK 2.4 billion), Russia (by CZK 1.5 billion), Taiwan (by CZK 0.5 billion), Poland (by CZK 0.5 billion) and Malaysia (by CZK 0.5 billion).

Over last twelve months, compared to the preceding twelve months, exports and imports grew by 12.0% and 11.2%, respectively. The trade balance reached a surplus of CZK 40.4 billion, which was an improvement of CZK 16.9 billion.
Trade in ‘machinery and transport equipment’ (surplus up by CZK 78.2 billion), ‘miscellaneous manufactured articles‘ (surplus up by CZK 4.3 billion), ‘crude materials, inedible, except fuels’ (deficit down by CZK 2.9 billion) and ‘beverages and tobacco’ (deficit down by CZK 1.0 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 47.7 billion), ‘manufactured goods classified chiefly by material’ (surplus down by CZK 17.9 billion) and ‘chemicals and related products’ (deficit up by CZK 4.8 billion).
By group of countries, trade surplus with the EU member states was higher by CZK 54.2 billion, while trade deficit with the non-EU states increased by CZK 37.3 billion. Balance improved particularly in trade with Sweden (by CZK 15.6 billion), Italy (by CZK 13.4 billion), France (by CZK 12.1 billion), the United States (by CZK 9.5 billion), Ukraine (by CZK 8.2 billion) and Switzerland (by CZK 7.0 billion). Deterioration was observed especially in trade with Russia (by CZK 26.5 billion), China (by CZK 25.6 billion), Poland (by CZK 7.2 billion), Germany (by CZK 7.0 billion), Taiwan (by CZK 5.7 billion) and Japan (by CZK 4.8 billion).

January-August 2006 exports and imports grew by 13.7% and 13.9%, respectively. The trade surplus of CZK 33.9 billion was by CZK 1.7 billion higher year-on-year.

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According to the note of the Directorate General of Customs, data were received from 94.5% 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 the companies supplied in the previous period.