Actual (Jul): CZK -12.8bn
Consensus: CZK -20.0bn
Previous (Jun): CZK -8.3bn
The current account deficit is significantly smaller than the consensus, but trade balance has already been released and was better than expected by some 6 bn. Real market expectations about the C/A were, therefore, around CZK -14bn and the final result is not very surprising. It should be neutral for financial markets.
As usual, positive balance of trade in goods and services (+CZK 12bn in total) was outweighed by deficit on the income balance (CZK -21.2bn). The dividend outflow included is worth CZK 14.4bn. In July, also the balance of current transfers contributed negatively to the C/A as it posted a deficit of CZK -3.6bn.
On the financial account, net FDIs were negative (CZK -3,4bn) because of a decrease in foreign capital. Net portfolio investment, on the other hand, were positive (CZK +12,6bn) thanks to money of Czech investors withdrawed from foreign equity markets.