Actual (Dec): CZK 0.7bn
Consensus: CZK -12.9bn
Previous (Nov): -2.0bn
The December balance of the current account was a nice surprise thanks to lower dividend outflow and significant revenue from the EU budget. In December the amount of dividends transferred abroad was CZK 4.2bn, the net proceeds from the EU budget were CZK 8.6bn. These figures improved the income balance and the balance of current transfers respectively. Surplus of the trade balance was below average, which was not surprising because of the seasonal decrease in exports. The deficit on the balance of services has stabilized at CZK 3-4bn.
The FDI worth CZK 5.8bn is below the previous months´ level. The portfolio investment picked up from zero to CZK 9.3bn.
In 2010 the current account gap reached 2.5 pct of GDP after 1.0 pct in the previos year. We expect the gap to widen in 2011 to about 3.4 pct of GDP due to both relatively lower surplus on the balance of trade and higher deficit on the income balance.