The current account of the balance of payment in April slumped to negative territory with a deficit reaching CZK 16.8bn. The main reason is the significant growth in the deficit in the income side. The increasing outflow of dividends, which is behind this deficit, was expected, but its rate surprised us. We expect that the dramatically negative balance is going continue in the following months.
On the other hand, the balance of trade has a positive influence on the current account. Within methodology used by Czech National Bank, it reached a surplus of CZK 5.6bn. This is mainly due to the strong demand for Czech products in the Eurozone and Slovakia. Other positive factors were prices paid in foreign trade and probably the weather.