External Trade of the Czech Republic

Commentary

Contents

According to preliminary data, seasonally adjusted exports decreased by 2.7% while imports rose by 5.0%, month-on-month. The trend component increased by 0.7% in exports and by 0.6% in imports.
Year-on-year, exports at current prices grew by 13.6% to CZK 238.4 billion and imports by 11.5% to CZK 229.8 billion. Exports and imports thus reached record-breaking levels per month. Due to appreciation of the koruna against the euro and even more against the US dollar, external trade grew faster in euros (exports +17.6%, imports +15.4%) and in US dollars (exports +32.6%, imports +30.2%) than in korunas.
The trade balance reached a surplus of CZK 8.6 billion, which was an improvement of CZK 4.8 billion in comparison to October 2006. October trade balance has been active since 2005 and the surplus recorded this year is the highest one. Trade balance with EU27 states was active by CZK 38.9 billion and with non-EU27 states passive by CZK 30.3 billion.
A favourable development was recorded in trade in ‘crude materials, inedible, except fuels’ (improvement of CZK 1.8 billion as deficit of CZK 0.5 billion turned into a surplus of CZK 1.3 billion), ‘mineral fuels, lubricants and related materials’ (deficit down by CZK 1.6 billion), ‘miscellaneous manufactured articles’ (surplus up by CZK 1.5 billion), ‘machinery and transport equipment’ (surplus up by CZK 1.4 billion) and ’food and live animals’ (deficit down by CZK 0.7 billion). Trade balance was negatively influenced by a CZK 1.4 billion increase of deficit in ‘chemicals and related products’ and by a CZK 0.5 billion fall of surplus in ’manufactured goods classified chiefly by material’.
Exports of ‘machinery and transport equipment’ grew by 14.4% (CZK 16.3 billion). The highest export increases were registered in ‘telecommunications and sound-recording equipment’ (CZK 4.7 billion), ’road vehicles’ (CZK 3.0 billion) and ‘electrical machinery, apparatus and appliances’ (CZK 2.7 billion). Total imports of ‘machinery and transport equipment’ were up by 16.8% (CZK 14.9 billion), of which the highest increases were reached in ‘telecommunications and sound-recording equipment’ (CZK 4.5 billion), ’road vehicles’ (CZK 2.8 billion) and ‘machinery specialized for particular industries’ (CZK 2.0 billion).
Imports of mineral fuels fell by 2.6% (CZK 0.4 billion), mainly due to lower imports of crude petroleum ( 49.3% in value, -51.6% in volume). On the other hand, imports of natural gas grew by 19.1% in value and by 30.0% in volume.
By group of countries, trade surplus with EU27 states rose by CZK 4.3 billion and trade deficit with non-EU27 states decreased by CZK 0.5 billion. Deficit decreased in trade with the Russian Federation (by CZK 4.3 billion). Trade surplus grew with Slovakia (by CZK 2.0 billion), France (by CZK 1.4 billion), the United Kingdom (by CZK 1.0 billion), the Ukraine (by CZK 0.9 billion) and Germany (by CZK 0.8 billion). Trade deficit grew with China (by CZK 4.9 billion), Japan (by CZK 2.3 billion), Ireland (by CZK 0.7 billion) and the Netherlands (by CZK 0.6 billion). Surplus dropped in trade with Hungary (by CZK 0.9 billion).
In the twelve months to October 2007, compared with the previous twelve months, exports and imports grew by 16.1% and 14.4% respectively. The trade balance reached a surplus of CZK 77.1 billion, which was an improvement of CZK 40.2 billion.
Favourable development was reported for trade in ‘machinery and transport equipment’ (surplus up by CZK 33.1 billion), ‘mineral fuels, lubricants and related materials’ (deficit down by CZK 20.9 billion), ‘crude materials, inedible, except fuels’ (improvement by CZK 10.7 billion as deficit turned into a surplus), ‘miscellaneous manufactured articles‘ (surplus up by CZK 7.3 billion) and ‘beverages and tobacco’ (deficit down by CZK 1.1 billion). Trade balance deteriorated in ‘manufactured goods classified chiefly by material’ (surplus down by CZK 16.6 billion), ‘chemicals and related products’ (deficit up by CZK 13.6 billion), and ‘food and live animals’ (deficit up by CZK 3.5 billion).
By group of countries, trade surplus with EU27 states rose by CZK 69.1 billion and trade deficit with non-EU27 states increased by CZK 28.9 billion. Deficit decreased in trade with the Russian Federation (by CZK 27.7 billion); surplus rose in trade with Slovakia (by CZK 23.7 billion), Germany (by CZK 15.1 billion), the United Kingdom (by CZK 11.7 billion), Poland (by CZK 9.2 billion), France (by CZK 7.5 billion) and Sweden (by CZK 6.5 billion). Trade deficit grew with China (by CZK 52.2 billion), Japan (by CZK 9.4 billion), the Netherlands (by CZK 7.1 billion) and Ireland (by CZK 5.1 billion). The trade balance with the United States deteriorated (by CZK 5.6 billion) as surplus turned into a deficit. Trade surplus with Austria fell by CZK 5.4 billion.

In January–October 2007 exports and imports grew by 16.4% and 14.6% respectively. The trade surplus of CZK 75.8 billion was by CZK 37.3 billion higher year-on-year.

The CZSO has carried out the regular quarterly update. According to the updated figures, the trade balance surplus grew by CZK 2.7 billion to CZK 38.9 billion in the first quarter of 2007, decreased by CZK 2.8 billion to CZK 17.4 billion in the second quarter of 2007 and fell by CZK 2.1 billion to CZK 10.9 billion in the third quarter of 2007. As a result, the trade balance surplus fell by CZK 2.2 billion to CZK 67.2 billion in the 1st–3rd quarters of 2007.


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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.