The current account deficit grew in Q3 07 to CZK 47.8bn, from CZK 42.7bn in Q2 07. The released data differs slightly from the monthly statistics of balance of payments and do not bring any new impulses for the CZK rate (but it is also not against another strengthening).
The current account deficit deepened to 3.5% of GDP in Q3 07, from 3.3% of GDP in Q2 07, according to our estimates. The higher difference in comparison with GDP has reached in Q1 05. Taking into account the stage of the business cycle and structural changes in Czech economy, this high deficit is, however, acceptable, and does not disturb financial markets, investors, or rating agencies.