External Trade of the Czech Republic

For the first time in history of the Czech Republic, external trade turnover entered in a marked downfall. Compared to 2008, external trade turnover dropped by 15.8 percent , i.e. by CZK 769.5 billion (in 2008 it increased by 0.2 percent compared to 2007), the reason being a y-o-y decrease of exports and imports in particular.

A decrease of external trade turnover (however much more moderate) occurred also in 2002 (by 2.8 % y-o-y, of which exports decreased by 1.0 % and imports by 4.3 %). Thus the value of external trade turnover in 2009 returned approximately to the 2006 level, or was even rather lower. The external trade balance ended 2009 with the biggest surplus since 2005 (CZK 152.0 bn), when the external trade showed a positive balance for the first time since the creation of the Czech Republic. However, the 2009 trade balance surplus was almost four times higher than in 2005 and doubled compared to 2008.

Graph – External trade of the Czech Republic 2000 – 2009

Exports went down by 13.8 % (CZK 342.4 bn) and reached CZK 2,131.3 bn. Due to a significant weakening of CZK against EUR and namely USD3, exports brought in these currencies registered a more marked y-o-y decrease then it did in CZK. Computed in euros exports decreased by 18.7 %, in dollars exports were lower by 23.0 %. However, behind the development of exports in 2009 are different trends in individual quarters. The y-o-y decrease of exports by 19.1 % in the 1st quarter and by 19.4 % in the 2nd quarter became stepwise more moderate, to 13.0 % in the 3rd quarterand 2.4 % in the 4th quarter of the year.

Imports were down by 17.7 % (CZK 427.1 bn) and made CZK 1,979.3 bn. Just like exports, also imports, due to the weakening of the CZK relation to EUR and mainly to USD, was more marked brought in these currencies than in CZK. Computed in euros, imports decreased by 22.4 %, in dollars by 26.3 %. Just like the development of exports, even that of imports was affected by different trends in individual quarters. After the y-o-y decrease of imports in the 1st quarter by 20.2 % came a drop to 22.8 % in the 2nd quarter, which slowed down to 16.7 % in the 3rd quarter and to 10.9 % in the 4th quarter of the year.

External trade surplus reaching CZK 152.0 bn (by CZK 84.8 bn higher y-o-y) resulted from positive trade balance figures in all quarters. Surplus CZK 34.3 bn in the 1st quarter grew to the so far highest quarterly value CZK 45.5 bn; in the 3rd quarter and in the 4th quarter came a deceleration of growth to CZK 37.6 bn and to CZK 34.6 bn. Since the 2nd quarter, the balance improved y-o-y stepwise more markedly. While in the 1st quarter the positive surplus
grew only by CZK 0.5 bn, in the 2nd quarter the growth amounted to CZK 15.3 bn, in the 3rd quarter as much as CZK 19.1 bn and in the 4th quarter even CZK 49.9 bn.

Except Other Countries and Developing Economies, exports decreased y-o-y to all remaining groups of countries. Exports to EU countries decreased y-o-y by 14.4 % and exports out of the EU by 10.7 %. The biggest y-o-y drop occurred in exports to CIS and European Transition Economies and further to Other Developed Market Economies and EFTA countries. Exports to Other Countries and Developing Economies increased by 18.5 % and 11.6 %. The value of exports to EU countries showed the biggest annual decrease (CZK 303.2 bn); the value of exports out of the EU decreased y-o-y by CZK 39.2 bn, of which to CIS by CZK 31.3 bn, Other Developed Market Economies by CZK 9.2 bn, European Transition Economies by CZK 5.9 bn and to EFTA countries by CZK 1.2 bn. Value of exports to Developing Economies and Other Countries grew y-o-y by CZK 9.6 bn and CZK 2.7 bn.

Imports were y-o-y lower from all groups of countries. Imports from EU countries were y-o-y down by 17.9 % and from non-EU countries by 17.4 %. The most marked decrease showed evidently imports from CIS and European Transition Economies and further from Other Developed Market Economies, EFTA countries, Other Countries and Developing Economies. The biggest y-o-y drop registered the value of imports from the EU (CZK 289.0 bn), value of imports from countries out of the EU was down y-o-y by CZK 138.1 bn, of which from CIS by CZK 79.9 bn, Other Developed Market Economies by CZK 32.1 bn, from Other Countries by CZK 13.3 bn, Developing Economies by CZK 10.5 bn, from EFTA countries by CZK 3.3 bn and from European Transition Economies by CZK 2.0 bn.

Trade balance with EU countries ended with surplus of CZK 482.4 bn, which was y-o-y lower by CZK 14.2 bn, with non-EU countries there was a deficit of CZK 330.4 bn, which means a y-o-y decrease by CZK 99.0 bn. Negative trade balance with non-EU countries caused mainly by the deficit with Other Countries (CZK 186.8 bn), further with CIS (CZK 58.7 bn), Other Developed Market Economies (CZK 54.5 bn) and Developing Economies (CZK 42.8 bn). The negative external trade balance was y-o-y lower by CZK 48.6 bn with CIS, Other Countries by CZK 16.0 bn, Other Developed Market Economies by CZK 22.9 bn and with Developing Economies by CZK 20.0 bn. European Transition Economies and EFTA countries moderated the total decrease of the balance by a surplus, which increased by CZK 2.1 bn with EFTA countries and with European Transition Economies by CZK 3.9 bn.

Source: Czech Statistical Office