External Trade of the Czech Republic

Commentary

Contents

According to preliminary data, seasonally adjusted exports increased by 0.9% and imports by 0.3% month-on-month. The trend component rose by 1.1% in exports and by 1.2% in imports.

Year-on-year, exports and imports at current prices were up by 13.0% and 11.8%, respectively. The value of exports and imports was the highest since November 2006. Due to appreciation of the Czech koruna against the euro and especially against the US dollar, external trade grew faster in terms of euros (exports +15.4%, imports +14.2%) and US dollars (exports +27.1%, imports +25.8%) than external trade in Czech korunas.
The trade balance reached a surplus of CZK 12.4 billion, which was by CZK 3.3 billion more year-on-year. It was the highest March surplus in the history of the Czech Republic. The trade balance with EU27 states was active by CZK 36.7 billion and with non-EU27 states passive by CZK 24.3 billion. The balance improvement was contributed to by especially the increase in trade surplus in ‘machinery and transport equipment’ by CZK 4.8 billion, a deficit turning into a surplus in trade in ‘crude materials, inedible, except fuels’ (improving balance by CZK 2.0 billion) and a fall of trade deficit in ’mineral fuels, lubricants and related materials’ by CZK 1.3 billion. A fall of CZK 2.1 billion in trade surplus in ’manufactured goods classified chiefly by material’ and increases in trade deficit in ‘chemicals and related products’ and in ’food and live animals’ by CZK 2.0 billion and CZK 1.2 billion, respectively, affected the trade balance unfavourably.
Exports and imports of ‘machinery and transport equipment’ grew by 15.0% (CZK +15.1 billion) and 13.7% (CZK +10.3 billion), respectively. The highest increases in both exports and imports were registered for ‘office machines and automatic data-processing machines’, ‘road vehicles’ and ‘telecommunications and sound-recording equipment’. An improvement of the trade balances in ‘electrical machinery, apparatus and appliances’, ‘office machines and automatic data-processing machines’ and ‘power-generating machinery and equipment’ had the highest share in growth of surplus in this commodity section.
Lower imports of ’mineral fuels, lubricants and related materials’ by 8.1% (CZK –1.3 billion) was mainly due to decreases in imports of natural gas (-23.8% in terms of value, -25.6% in terms of volume). Imports of crude petroleum fell by 3.9% in terms of value, while it rose by 12.4% in terms of volume.
By group of countries, trade surplus with EU27 states rose by CZK 6.4 billion and trade deficit with non-EU27 states increased by CZK 3.1 billion. Increases were recorded for trade surplus with Slovakia (by CZK 2.5 billion), Germany (by CZK 1.7 billion) and the United Kingdom (by CZK 1.6 billion). Trade deficit with Russia decreased by CZK 2.0 billion and the trade balances with Poland and Norway turned from the deficit into a surplus (improvement by CZK 1.8 billion and 1.0 billion, respectively). Trade deficits grew with China (by CZK 3.4 billion) and Japan (by CZK 0.5 billion); trade surpluses fell with the Ukraine (by CZK 2.1 billion) and France (by CZK 0.7 billion). A surplus turning into a deficit deteriorated the trade balance with Ireland by CZK 0.6 billion.

In the twelve months to March 2007 compared with the previous twelve months, exports and imports grew by 14.0% and 13.5%, respectively. The trade balance reached a surplus of CZK 55.4 billion, which is an improvement of CZK 14.6 billion.
Trade in ‘machinery and transport equipment’ (surplus up by CZK 49.2 billion) had the main favourable effect on the balance of trade. A deficit turning into surplus improved the balance in trade with ‘crude materials, inedible, except fuels’ by CZK 5.2 billion; and deficit fell in trade with ‘beverages and tobacco’ by CZK 1.7 billion. The trade balance deteriorated in ‘manufactured goods classified chiefly by material’ (surplus down by CZK 12.8 billion), ‘chemicals and related products’ (deficit up by CZK 9.6 billion), ‘mineral fuels, lubricants and related materials’ (deficit up by CZK 8.2 billion), ‘food and live animals’ (deficit up by CZK 7.5 billion) and ‘miscellaneous manufactured articles‘ (surplus down by CZK 3.4 billion).
By group of countries, trade surplus with EU27 states was higher by CZK 69.3 billion, while trade deficit with non-EU27 states increased by CZK 54.7 billion. Surplus rose in trade with Germany (by CZK 16.6 billion), Slovakia (by CZK 14.9 billion), the United Kingdom (by CZK 4.1 billion) and Spain (by CZK 3.3 billion). Deficit turning into surplus improved the trade balance with Sweden (by CZK 14.3 billion), Italy (by CZK 7.5 billion) and Switzerland (by CZK 6.0 billion). Trade deficit grew with China (by CZK 33.5 billion), Taiwan (by CZK 4.6 billion), Japan (by CZK 2.2 billion), Malaysia (by CZK 2.2 billion) and Russia (by CZK 2.1 billion). A surplus turning into a deficit deteriorated the trade balance with the United States (by CZK 5.8 billion).

January-March 2007 exports and imports grew by 15.3% and 13.8%, respectively. The trade surplus of CZK 37.0 billion was by CZK 11.1 billion higher year-on-year.

According to the note of the Directorate General of Customs, data were received from 94.6% 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.