Actual (Jun): CZK -9.3bn
Consensus: CZK -18.2bn
Previous (May): CZK -23.1bn
The balance of current account was significantly better than consensus. But, the difference is mostly in trade balance. This figure has already been out and is better than expected by some 7 bn. The lower C/A deficit is, therefore, not any big surprise. Dividend outflow remained relatively high in June (CZK 17.1bn) and kept the income balance deep below zero. Balance of services, as usual, posted a surplus (CZK 5.5bn), while the balance of current transfers had marginal impact on the C/A this time.
Net FDIs reached a similar level as a month before (CZK 8.1bn), with direct investments from abroad worth CZK 9.7bn mostly thanks to a reinvested profit. This year, we see the C/A deficit to be slightly lower than in 2010. It should reach about 3.1 pct of GDP.