External Trade of the Czech Republic

Commentary

Contents

According to preliminary data, seasonally adjusted exports increased by 4.8% and imports by 1.9%, month-on-month. The trend component rose by 2.7% in exports and by 1.5% in imports.
Year-on-year, exports and imports at current prices were up by 20.7% and 18.7%, respectively. Due to appreciation of the Czech koruna against the euro and especially against the US dollar, external trade grew faster in euros (exports +21.2%, imports +19.2%) and in US dollars (exports +31.3%, imports +29.0%) than in Czech korunas.
The trade balance ended in a deficit of CZK 0.7 billion, which was CZK 2.7 billion down in comparison to the July 2006 figure. This is the first monthly deficit balance in 2007. The July balance has never been in the black since 1993. The trade balance with EU27 states was active by CZK 27.5 billion and with non-EU27 states passive by CZK 28.2 billion.
A favourable development was recorded in trade in ‘machinery and transport equipment’ (surplus up by CZK 2.1 billion), ‘crude materials, inedible, except fuels’ (improvement by CZK 1.4 billion due to deficit turning into a surplus), ’mineral fuels, lubricants and related materials’ (deficit down by CZK 0.8 billion) and ‘miscellaneous manufactured articles’ (improvement by CZK 0.8 billion as deficit turned into a surplus). The balance was negatively affected by the balance of trade in ’manufactured goods classified chiefly by material’ (deterioration by CZK 1.8 billion due to surplus turning into a deficit) and ‘chemicals and related products’ (deficit up by CZK 0.9 billion). Trade balance in ’food and live animals’ and ‘beverages and tobacco’ remained approximately at the same level as in July 2006.
Total exports of ‘machinery and transport equipment’ grew by 19.7% (CZK +16.6 billion), of which the highest increases were recorded in ’road vehicles’ (CZK +4.2 billion), ‘electrical machinery, apparatus and appliances’ (CZK +3.4 billion) and ‘telecommunications and sound-recording equipment’ (CZK +2.8 billion). Total imports of ‘machinery and transport equipment’ were up by 22.3% (CZK +14.5 billion). The highest increases were achieved in ‘telecommunications and sound-recording equipment’ (CZK +4.6 billion), ’road vehicles’ (CZK +2.5 billion) and ‘general industrial machinery and equipment’ (CZK +2.0 billion).
Lower imports of mineral fuels by 3.8% (CZK -0.7 billion) were mainly due to decreases in imports of petroleum (-10.2% in terms of value and -8.2% in terms of volume) and natural gas (-10.1% in terms of value and -3.1% in terms of volume).
By group of countries, trade surplus with EU27 states rose by CZK 7.1 billion and trade deficit with non-EU27 states increased by CZK 4.4 billion. Trade deficit decreased with Russia (by CZK 1.7 billion) and Italy (by CZK 1.1 billion). Trade surplus rose with Slovakia (by CZK 1.7 billion), the United Kingdom (by CZK 1.5 billion), and Germany (by CZK 1.0 billion). Deficit turning into a surplus improved the balance with France (by CZK 1.6 billion). Trade deficit grew with China (by CZK 4.6 billion), Japan (by CZK 1.1 billion) and the Netherlands (by CZK 0.7 billion). Surplus decreased in trade with Austria (by CZK 0.9 billion) and Hungary (by CZK 0.7 billion).
In the twelve months to July 2007, compared with the previous twelve months, exports and imports grew by 16.3% and 14.7%, respectively. The trade balance reached a surplus of CZK 67.1 billion, which was an improvement of CZK 36.7 billion.
Favourable development was reported for trade in ‘machinery and transport equipment’ (surplus up by CZK 42.2 billion) and ‘mineral fuels, lubricants and related materials’ (deficit down by CZK 13.7 billion). Deficit turning into a surplus improved the balance in ‘crude materials, inedible, except fuels’ (by CZK 8.6 billion) and ‘beverages and tobacco’ (by CZK 1.9 billion); surplus rose in ‘miscellaneous manufactured articles‘ (by CZK 4.6 billion). Trade balance deteriorated in ‘manufactured goods classified chiefly by material’ (surplus down by CZK 16.5 billion), ‘chemicals and related products’ (deficit up by CZK 11.8 billion), and ‘food and live animals’ (deficit up by CZK 6.2 billion).
By group of countries, trade surplus with EU27 states was higher by CZK 77.8 billion, while trade deficit with non-EU27 states increased by CZK 41.1 billion. Surplus rose in trade with Slovakia (by CZK 21.9 billion), Germany (by CZK 17.3 billion), Sweden (by CZK 10.0 billion), the United Kingdom (by CZK 9.3 billion) and Poland (by CZK 6.7 billion). Deficit dropped in trade with Russia (by CZK 17.1 billion) and deficit turning into a surplus improved the balance with Norway by CZK 7.0 billion. Trade deficit grew with China (by CZK 44.0 billion), the Netherlands (by CZK 8.5 billion), Taiwan (by CZK 4.5 billion) and Japan (by CZK 4.5 billion). The trade balance with the United States deteriorated (by CZK 7.2 billion) as surplus turned into a deficit; and trade surplus with Austria fell by CZK 3.9 billion.
In January-July 2007 exports and imports grew by 17.3% and 15.3%, respectively. The trade surplus of CZK 55.7 billion was by CZK 27.3 billion higher year-on-year.
The CZSO has carried out the regular quarterly update. The final data say that the trade balance for the year 2006 reached a surplus of CZK 39.8 billion (correction by CZK -3.2 billion). According to updated figures, trade balance surplus grew by CZK 1.6 billion and reached CZK 36.1 billion in the first quarter of 2007 and rose by CZK 1.0 billion and stood at CZK 20.3 billion in the second quarter of 2007.




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According to the note of the Directorate General of Customs, data were received from 94.7% 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.