External Trade of the Czech Republic

Commentary

External trade in September 2006

According to preliminary data, seasonally adjusted exports increased by 3.1% and imports fell by 0.7% month-on-month. The trend component rose by 1.5% in exports and by 1.0% in imports. The trend in exports has been increasing since April 2006; the trend in imports has been going up since July 2006, following a period of fluctuation.

Year-on-year, exports and imports at current prices were up by 9.4% and 8.4%, respectively. Exports reached the highest value since March 2006 (and the second highest in the Czech Republic’s history); imports recorded the highest value since May 2006 (the fourth highest in the Czech Republic’s history). 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 +13.0%, imports +11.9%) and US dollars (exports +17.2%, imports +16.1%) than external trade in Czech korunas.
The trade balance reached a surplus of CZK 7.5 billion, which was by CZK 2.2 billion more year-on-year. Trade balance with the EU member states was active by CZK 32.1 billion and with the non-EU states passive by CZK 24.6 billion. Growth of surplus of trade in ‘machinery and transport equipment’ by CZK 3.0 billion, ‘manufactured goods classified chiefly by material’ by CZK 1.0 billion and ‘miscellaneous manufactured articles’ by CZK 0.7 billion influenced the balance positively. The balance was negatively affected in particular by the results of trade in ’mineral fuels, lubricants and related materials’ (deficit up by CZK 1.7 billion), ‘chemicals and related products’ (deficit up by CZK 0.3 billion) and ‘crude materials, inedible, except fuels’ (surplus down by CZK 0.3 billion).
Total exports of ‘machinery and transport equipment’ increased by 9.7% (CZK +8.5 billion) and total imports of these commodities grew by 8.2% (CZK +5.5 billion). Increases were registered mainly for exports, but also for imports, of ‘office machines and automatic data-processing machines’ and ‘road vehicles’. Decreases were observed especially in exports of ‘power-generating machinery and equipment’ and in imports of ‘machinery specialized for particular industries’.
The higher imports of ‘mineral fuels, lubricants and related materials’ by 17.4% (CZK +2.7 billion) were mainly influenced by imports of natural gas (+62.8% in terms of value, +44.1% in terms of volume) and crude petroleum (+17.0% in terms of value, +5.8% in terms of volume).
By group of countries, trade surplus with the EU member states rose by CZK 7.5 billion and trade deficit with the non-EU states increased by CZK 5.3 billion. Balance improved particularly in trade with Germany by CZK 3.3 billion (mainly due to growing exports of metallurgical and rubber products), Slovakia by CZK 1.8 billion, France by CZK 1.2 billion, Japan by CZK 1.2 billion and Spain by CZK 1.2 billion. On the other hand, balance deteriorated in trade with China by CZK 3.1 billion (mainly imports of ‘office machines and automatic data-processing machines’ were higher), the United States by CZK 1.0 billion, Russia by CZK 0.9 billion, the Netherlands by CZK 0.8 billion and Taiwan by CZK 0.8 billion.

Over last twelve months, compared to the preceding twelve months, exports and imports grew by 12.1% and 11.4%, respectively. The trade balance reached a surplus of CZK 42.6 billion, which was an improvement of CZK 16.2 billion.
Trade in ‘machinery and transport equipment’ (surplus up by CZK 75.1 billion), ‘miscellaneous manufactured articles‘ (surplus up by CZK 5.0 billion), ‘crude materials, inedible, except fuels’ (deficit down by CZK 2.3 billion) and ‘beverages and tobacco’ (deficit down by CZK 0.7 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 46.0 billion), ‘manufactured goods classified chiefly by material’ (surplus down by CZK 16.1 billion) and ‘chemicals and related products’ (deficit up by CZK 5.0 billion).
By group of countries, trade surplus with the EU member states was higher by CZK 58.6 billion, while trade deficit with the non-EU states increased by CZK 42.4 billion. Balance improved particularly in trade with Sweden (by CZK 14.7 billion; effect of last year’s imports of Jas-Gripen fighters), Italy (by CZK 12.9 billion), France (by CZK 11.8 billion), Ukraine (by CZK 8.4 billion, Switzerland (by CZK 7.5 billion) and the United Kingdom (by CZK 7.3 billion). Deterioration was observed especially in trade with China (by CZK 27.4 billion), Russia (by CZK 24.6 billion), Poland (by CZK 8.9 billion), Taiwan (by CZK 6.3 billion), Japan (by CZK 3.4 billion) and Germany (by CZK 1.7 billion).

January-September 2006 exports and imports grew by 13.1% and 13.2%, respectively. The trade surplus of CZK 41.4 billion was by CZK 4.0 billion higher year-on-year.

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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 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.