Imports and exports grew by 23.3% and 27.7%, year-on-year, respectively. November trade deficit stood at CZK 12.1bn. The result is surprisingly good. Expectations counted for the deficit of CZK 18bn. Exports increase was influenced mainly by the machinery and transportation sector, while imports rose were up 27.7 percent helped by an easing of oil prices which have strongly boosted the trade deficit this year. The CSU added that the trade deficit for the first 11 months was 103.55 billion crowns, more than double the CZK 47.36bn shortfall for the same period last year. The October shortfall was revised from a previously reported 16.4 billion.
Germany should not fear a wave of immigrants from new European Union member states when the bloc expands, Czech President Vaclav Havel and his Austrian counterpart Thomas Klestil said on Wednesday. Germany is a strong advocate of EU enlargement, knowing it will provide new markets for its industry and greater regional stability. At the same time, their populations, particularly in areas bordering Eastern European candidate countries, fear an influx of cheap labour.
Late on Wednesday the crown was trading at 34.73/74 to the euro from the morning's 34.68 and 34.71/73 late Tuesday. The crown/dollar rose to 38.22/25 from 38.70/75 in the morning and 38.98/00 late Tuesday.
The Czech central bank governing board holds its final session on monetary policy this year on Thursday, but no decisions are expected to be taken.
The longest state bond 6.40/10 rose 55 basis points to 94.20/50 from Tuesday, with yield at 7.24/19 percent. The government 6.75/05 gained 20 points to 99.75/100.05, yielding 6.81/73.
(David Marek)