News Release of External Trade Statistics - January

In January 2009, according to preliminary data, exports and imports at current prices fell by 24.0% and 21.3% year-on-year respectively. The trade balance showed a surplus of CZK 3.5 bn, which was down by CZK 8.3 bn year-on-year. A decrease of CZK 11.5 bn in surplus in machinery and transport equipment was a major adverse effect on the overall trade balance. In contrast, the trade balance of mineral fuels, lubricants and related materials improved as the deficit decreased by CZK 1.9 bn.
According to preliminary data, seasonally adjusted exports were down by 0.3% and imports by 0.5%, month-on-month. The development trend shows decreasing exports (-1.9%) and imports (-2.0%).

Year-on-year, exports and imports at current prices fell by 24.0% and 21.3% respectively, which is the biggest external trade slump in the history of the Czech Republic. Exports and imports fell in January for the fourth successive month and external trade turnover was the lowest since February 2006. Due to depreciation of the koruna against the two major currencies, external trade decreased faster in euros (exports -27.2%, imports -24.6%) and even more in US dollars (exports -34.5%, imports -32.2%).

The trade balance yielded a surplus of CZK 3.5 bn, which was by CZK 8.3 bn worse result year-on-year. The trade balance with other EU member states was a surplus of CZK 43.6 bn and with non-EU countries a deficit of CZK 40.1 bn. The trade balance was negatively affected by a CZK 11.5 bn drop in surplus in ‘machinery and transport equipment’, a CZK 1.6 bn deterioration in ‘miscellaneous manufactured articles’ (surplus turned into a deficit) and a CZK 0.8 bn increase in deficit in ‘food and live animals’. In contrast, a CZK 1.9 bn drop in deficit in ‘mineral fuels, lubricants and related materials’, a CZK 1.2 bn decrease in deficit in ‘chemicals and related products’, a CZK 1.4 bn improvement in ‘crude materials, inedible, except fuels’ (deficit turned into a surplus) and a CZK 1.0 bn growth in surplus in ‘manufactured goods classified chiefly by material’ were the positive effects.

Exports and imports of ‘machinery and transport equipment’ were down by 28.5% (CZK -34.0 bn) and 26.0% (CZK -22.5 bn) respectively. The biggest exports and imports decreases were recorded in ‘road vehicles’ (CZK -14.0 bn and CZK -6.6 bn respectively), ‘electrical machinery, apparatus and appliances’ (CZK -5.4 bn and CZK -5.1 bn respectively), telecommunications and sound-recording equipment’ (CZK -4.8 bn and CZK -3.9 bn respectively), ‘general industrial machinery and equipment’ (both CZK -3.6 bn) and ‘power-generating machinery and equipment’ (CZK -2.4 bn and CZK -2.1 bn respectively). Imports of ‘mineral fuels, lubricants and related materials’ fell by 11.9% (CZK -2.3 bn). Imports of crude oil fell by 46.3% in value and rose by 5.6% in volume; imports of natural gas grew by 50.7% in value and dropped by 6.6% in volume.

By group of countries, trade surplus with other EU member states fell by CZK 6.9 bn and trade deficit with non-EU countries increased by CZK 1.4 bn. Trade surplus grew with Germany (by CZK 3.3 bn), Finland (by CZK 0.5 bn) and Slovakia (by CZK 0.2 bn). Trade deficit fell with Korea (by CZK 1.1 bn), Azerbaijan (by CZK 1.1 bn), the Russian Federation (by CZK 0.7 bn), Kazakhstan (by CZK 0.6 bn) and China (by CZK 0.5 bn). In contrast, trade surplus decreased with Spain (by CZK 1.8 bn), Italy (by CZK 1.5 bn), Romania (by CZK 1.5 bn), the United Kingdom (by CZK 1.4 bn), Belgium (by CZK 0.9 bn) and Poland (by CZK 0.8 bn). Trade deficit grew with the United States (by CZK 0.7 bn) and trade balance deteriorated with Norway (by CZK 0.9 bn) as surplus turned into a deficit.

In the twelve months to January 2009, compared with the previous twelve months, exports and imports were down by 3.5% and 2.5% respectively. The trade balance showed a surplus of CZK 60.5 bn, which was down by CZK 28.9 bn. Trade balance improved in ‘manufactured goods classified chiefly by material’ (surplus up by CZK 9.9 bn), ‘chemicals and related products’ (deficit down by CZK 6.5 bn), ‘beverages and tobacco’ (improvement by CZK 4.5 bn as deficit turned into a surplus) and ‘food and live animals’ (deficit down by CZK 3.0 bn). Trade balance deteriorated in ‘mineral fuels, lubricants and related materials’ where deficit grew by CZK 36.0 bn. Decreases in surplus were registered in ‘miscellaneous manufactured articles’ (by CZK 13.0 bn), ‘machinery and transport equipment’ (by CZK 2.4 bn) and ‘crude materials, inedible, except fuels’ (by CZK 0.8 bn).

By group of countries, trade surplus with other EU member states rose by CZK 55.9 bn and trade deficit with non-EU countries increased by CZK 84.8 bn. Surplus rose in trade with Germany (by CZK 26.5 bn), the Netherlands (by CZK 20.8 bn), Poland (by CZK 8.1 bn), France (by CZK 7.2 bn), Austria (by CZK 6.0 bn), Slovakia (by CZK 5.6 bn) and Finland (by CZK 3.8 bn). Trade deficit grew with the Russian Federation (by CZK 27.9 bn), China (by CZK 22.2 bn) and Azerbaijan (by CZK 3.7 bn). Trade balance deteriorated with Norway (by CZK 8.8 bn as surplus turned into a deficit) and with Spain (by CZK 8.8 bn), Belgium (by CZK 5.8 bn) and Hungary (by CZK 4.5 bn) where decreases in surplus were recorded.

According to the CZSO’s regular quarterly update , the 2008 trade surplus amounted to CZK 68.8 bn (downward correction of CZK 0.6 bn).
According to the CZSO’s sources, the data were reported by 95.8% of firms (goods dispatched) and 96.3% of firms (goods arrived) among the companies obliged to report to the Intrastat system.
Data for companies exempted from the reporting duty according to amended Decree No 201/2005 Sb. and for companies that failed to report have been imputed. The imputation methods are based on data that the companies reported in the previous period and data from the VAT returns.

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Notes
Contact: Karel Král, phone (+420) 274 052 161, e-mail: karel.kral@csu.gov.cz
Data source: Intrastat forms and Single Administrative Documents (SADs)
Related tables: w-6001-09 External Trade of the Czech Republic http://www.czso.cz/csu/2009edicniplan.nsf/engs/2009-6
The monthly data for 2008 are updated and refer to 27 February 2009 closing date.
The data for January 2009 are preliminary and refer to 27 February 2009 closing date; they will be updated in June 2009 together with monthly data for 2008 and 2009.