External Trade of the Czech Republic

Commentary

Contents

According to preliminary data, seasonally adjusted exports decreased by 5.0% and imports dropped by 1.2%, month-on-month. The trend component rose by 0.5% in exports and by 1.0% in imports.

Year-on-year, exports and imports at current prices were up by 12.1% and 11.7%, respectively. The growth of exports is at the lowest level since September 2006, the growth of imports since May 2007. Due to appreciation of the Czech koruna against the euro and even more against the US dollar, external trade grew faster in euros (exports +13.4%, imports +13.0%) and in US dollars (exports +20.6%, imports +20.2%) than in Czech korunas.
The trade balance ended in a deficit of CZK 0.6 billion, which was by CZK 0.5 billion less year-on-year. The August trade balance has always been in the red except for 1993 (CZK +0.3 billion). Trade balance with EU27 states was active by CZK 29.6 billion and with non-EU27 states passive by CZK 30.2 billion.
Trade balance improved in ‘crude materials, inedible, except fuels’ (improvement by CZK 1.5 billion, deficit turned into a surplus), ’mineral fuels, lubricants and related materials’ (deficit down by CZK 1.2 billion) and ’food and live animals’ (deficit down by CZK 0.2 billion). The other way round, the trade balance was negatively influenced by a CZK 1.4 billion decrease in surplus in ‘machinery and transport equipment’, a CZK 0.5 billion increase in deficit in ‘chemicals and related products’ and a CZK 0.3 billion decrease in surplus in ‘miscellaneous manufactured articles’. Trade balance in ’manufactured goods classified chiefly by material’ remained at approx. the same level as in August 2006.
Exports of ‘machinery and transport equipment’ grew by 12.5% (CZK 10.3 billion). The highest increases were recorded in ‘general industrial machinery and equipment’ (CZK 2.0 billion), ’road vehicles’ (CZK 1.8 billion) and ‘electrical machinery, apparatus and appliances’ (CZK 1.8 billion). Total imports of ‘machinery and transport equipment’ were up by 18.3% (CZK 11.7 billion), of which the highest increases were achieved in ‘telecommunications and sound-recording equipment’ (CZK 3.3 billion) and ‘office machines, automatic data-processing machines (CZK 3.0 billion). The trade balance of these two last commodity divisions deteriorated by CZK 1.7 billion and CZK 1.9 billion, respectively.
Lower imports of mineral fuels by 6.4% (CZK -1.2 billion) were mainly due to decreases in imports of natural gas (-30.1% in terms of value, -27.0% in terms of volume) and petroleum (-1.9% in terms of value, -1.7% in terms of volume).
By group of countries, trade surplus with EU27 states rose by CZK 3.1 billion and trade deficit with non-EU27 states increased by CZK 2.6 billion. Deficit decreased in trade with the Russian Federation (by CZK 2.8 billion). Trade surplus rose with Slovakia (by CZK 2.0 billion), France (by CZK 1.4 billion), the United Kingdom (by CZK 0.9 billion) and Belgium (by CZK 0.8 billion). As deficit turned into a surplus, the trade balance with Norway improved (by CZK 0.8 billion). Trade deficit grew with China (by CZK 6.4 billion), Japan (by CZK 0.7 billion) and Thailand (by CZK 0.7 billion). As surplus turned into a deficit, the trade balance with the Netherlands deteriorated (by CZK 2.1 billion), and surplus was down in trade with Germany (by CZK 0.8 billion) and Austria (by CZK 0.7 billion).
In the twelve months to August 2007, compared with the previous twelve months, exports and imports grew by 16.4% and 15.0%, respectively. The trade balance reached a surplus of CZK 67.6 billion, which was an improvement of CZK 33.9 billion.
Favourable development was reported for trade in ‘machinery and transport equipment’ (surplus up by CZK 33.4 billion), ‘mineral fuels, lubricants and related materials’ (deficit down by CZK 16.7 billion), ‘crude materials, inedible, except fuels’ (improvement by CZK 10.4 billion, deficit turned into a surplus), ‘miscellaneous manufactured articles‘ (surplus up by CZK 3.9 billion) and ‘beverages and tobacco’ (improvement by CZK 1.7 billion, deficit nearly disappeared). Trade balance deteriorated in ‘manufactured goods classified chiefly by material’ (surplus down by CZK 14.5 billion), ‘chemicals and related products’ (deficit up by CZK 12.7 billion), and ‘food and live animals’ (deficit up by CZK 5.4 billion).
By group of countries, trade surplus with EU27 states rose by CZK 70.8 billion and trade deficit with non-EU27 states increased by CZK 36.9 billion. Surplus rose in trade with Slovakia (by CZK 22.8 billion), Germany (by CZK 16.4 billion), the United Kingdom (by CZK 10.5 billion), France (by CZK 7.3 billion) and Poland (by CZK 7.1 billion). Deficit decreased in trade with the Russian Federation (by CZK 21.3 billion) and the trade balance with Norway improved (by CZK 8.2 billion), as deficit turned into a surplus. Trade deficit grew with China (by CZK 47.9 billion), the Netherlands (by CZK 12.2 billion) and Japan (by CZK 4.7 billion). The trade balance with the United States deteriorated (by CZK 6.4 billion), as surplus turned into a deficit, and trade surplus with Austria fell by CZK 4.5 billion.
In January-August 2007 exports and imports grew by 16.6% and 14.9%, respectively. The trade surplus of CZK 55.1 billion was by CZK 27.8 billion higher year-on-year.

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According to the note of the Directorate General of Customs, data were received from 95.2% 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 and on data from tax returns.