External Trade - June 2007

According to preliminary data for June 2007, exports and imports at current prices grew by 14.5% and 14.0% year-on-year, respectively. External trade reached a surplus of CZK 9.3 billion, which was an improvement of CZK 1.9 billion year-on-year. The trade balance was affected favourably by a CZK 2.2 billion increase in surplus in machinery and transport equipment and by a CZK 1.2 billion decrease in deficit in mineral fuels, lubricants and related materials.
According to preliminary data, seasonally adjusted exports increased by 2.5% and imports by 1.9%, month-on-month. The trend component rose by 1.7% in exports and by 1.1% in imports.

Year-on-year, exports and imports at current prices were up by 14.5% and 14.0%, respectively. Due to appreciation of the Czech koruna against the US dollar and depreciation against the euro, external trade in US dollars grew faster (exports +20.8%, imports +20.3%) than in Czech korunas, while exports and imports in euros rose slower (exports +13.8%, imports +13.4%) than in Czech korunas.
The trade balance reached a surplus of CZK 9.3 billion, which was by CZK 1.9 billion more year-on-year. The balance has been showing a surplus for the sixth consecutive month, while the June balance has been in the black continuously since 2004. The trade balance with EU27 states was active by CZK 36.1 billion and with non-EU27 states passive by CZK 26.8 billion.
The balance was positively influenced by the growth of surplus of trade in ‘machinery and transport equipment’ by CZK 2.2 billion and ‘crude materials, inedible, except fuels’ by CZK 1.0 billion and by the decrease of deficit in ’mineral fuels, lubricants and related materials’ by CZK 1.2 billion. Among negative effects on the balance was trade in ‘chemicals and related products’ (deficit up by CZK 1.5 billion) and ’manufactured goods classified chiefly by material’ (surplus down by CZK 1.0 billion). Trade balance in ‘miscellaneous manufactured articles’, ’food and live animals’ and ‘beverages and tobacco’ remained approximately on the same level as in June 2006.
Total exports of ‘machinery and transport equipment’ grew by 16.3% (CZK +15.8 billion), of which the highest increases were recorded in ’road vehicles’ (CZK +5.9 billion), ‘automatic data-processing machines’ (CZK +2.6 billion) and ‘general industrial machinery and equipment’ (CZK +2.0 billion). Total imports of ‘machinery and transport equipment’ were up by 19.1% (CZK +13.7 billion). The highest increases were achieved in ‘telecommunications and sound-recording equipment’ (CZK +3.8 billion), ’road vehicles’ (CZK +3.5 billion) and ‘automatic data-processing machines’ (CZK +2.5 billion).
Lower imports of mineral fuels by 9.3% (CZK 1.7 billion) were mainly due to decreases in imports of natural gas (-18.6% in terms of value and -8.4% in terms of volume) and petroleum (-11.2% in terms of value and -5.1% in terms of volume).
By group of countries, trade surplus with EU27 states rose by CZK 4.5 billion and trade deficit with non-EU27 states increased by CZK 2.6 billion. Trade deficit decreased with Russia (by CZK 2.2 billion); trade surplus rose with the United Kingdom (by CZK 1.4 billion), Slovakia (by CZK 1.3 billion) and Germany (by CZK 0.1 billion). Deficit turning into surplus improved the balance with Poland (by CZK 1.8 billion), Italy (by CZK 1.1 billion) and Norway (by CZK 1.0 billion). Trade deficit grew with China (by CZK 4.2 billion) and the Netherlands (by CZK 1.5 billion); and trade surplus fell with Austria (by CZK 1.4 billion) and Hungary (by CZK 1.0 billion). Surplus turning into deficit deteriorated the balance with the United States (by CZK 1.0 billion).

In the twelve months to June 2007, compared with the previous twelve months, exports and imports grew by 15.5% and 14.3%, respectively. The trade balance reached a surplus of CZK 63.2 billion, which was an improvement of CZK 28.3 billion.
Improvement was reported for trade in ‘machinery and transport equipment’ (surplus up by CZK 41.6 billion) and ‘mineral fuels, lubricants and related materials’ (deficit down by CZK 8.9 billion). Deficit turning into a surplus improved the balance in ‘crude materials, inedible, except fuels’ (by CZK 8.1 billion) and ‘beverages and tobacco’ (by CZK 2.8 billion), and surplus rose in ‘miscellaneous manufactured articles‘ (by CZK 1.7 billion). Trade balance deteriorated in ‘manufactured goods classified chiefly by material’ (surplus down by CZK 15.3 billion), ‘chemicals and related products’ (deficit up by CZK 12.4 billion), and ‘food and live animals’ (deficit up by CZK 6.9 billion).
By group of countries, trade surplus with EU27 states was higher by CZK 72.7 billion, while trade deficit with non-EU27 states increased by CZK 44.4 billion. Surplus rose in trade with Slovakia (by CZK 20.1 billion), Germany (by CZK 15.5 billion), Sweden (by CZK 9.8 billion), the United Kingdom (by CZK 8.8 billion) and Poland (by CZK 7.2 billion). Deficit dropped in trade with Russia (by CZK 14.5 billion) and Norway (by CZK 6.0 billion). Trade deficit grew with China (by CZK 40.4 billion), the Netherlands (by CZK 6.4 billion), Taiwan (by CZK 4.1 billion) and Japan (by CZK 3.9 billion). The trade balance with the United States deteriorated (by CZK 7.1 billion) as surplus turned into a deficit.

In January-June 2007 exports and imports grew by 16.1% and 14.6%, respectively. The trade surplus of CZK 53.8 billion was by CZK 20.2 billion higher year-on-year.
According to the note of the Directorate General of Customs, the 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 have been imputed. The imputation methods are based on data that the companies supplied in the previous period and on data from the tax returns.

Analysis - External trade in the first half of 2007

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Note
Contact: Karel Král, phone (+420) 274 052 161, e-mail: karel.kral@csu.gov.cz
Data source: Intrastat reports and Single Administrative Documents (SADs)
Related publication: 6001-07 External Trade of the Czech Republic in January - June 2007
http://www.czso.cz/csu/2007edicniplan.nsf/engs/2007-6
The table with the data on imports (FOB) of goods is used by the Czech National Bank for calculating the balance of payments.
/vzo_ts
The data for individual months of 2006 and data for individual months of Q1 2007 are updated referring to 16 May 2007 closing date.
The June 2007 data are preliminary referring to 31 July 2007 closing date and will be updated together with the data for the individual months of Q1 and Q2 2007 in September 2007 when final data for the year 2006 will be published.