Trade balance (May): CZK 23.1bn
Consensus: CZK 21.5bn
Previous (Apr): CZk 22.0bn
The May balance of foreign trade is slightly better than both the previous reading and the consensus. However, the turnover growth has worsened significantly. The exports increased by 2.8 pct. year on year, while the imports decreased by 1.1 pct. It is another indication that the domestic demand is weak and that the economic activity becomes even more dependent on the foreign demand. However, the Eurozone´s condition is worsening, too, which makes it harder for the Czech economy to get out of recession. Vehicles and machinery, the key sector for the foreign trade, showed a CZK 41bn trade surplus and remain the most important driver of industry. On the other hand, a negative contribution to the trade balance came from the sectors of mineral fuels and chemicals. They show deficits that are relatively stable over time. In May, it was CZK -16bn and CZK -9bn, respectively.