Czech October trade balance surplus estimated to 4,0 bn. CZK

According to our estimates the surplus in our balance of trade decreased slightly in October and reached CZK 4.0bn. The positive trend in exports is supported by this year’s improvements in the Germany economy, which is the Czech Republic’s main business partner. This took place at the same time in which there was rapid economy growth in Slovakia, which is our second most important trading partner. On the import side, the impact of strengthening domestic demand is quite apparent, mainly in terms of imports of vehicles and consumer goods. There has also been strong demand for machinery imports. The favorable results of the foreign trade picture were also supported by a decline in oil prices. The balance of trade for the whole year has reached a surplus of CZK 46bn (1.4% of GDP). This compares with last year’s positive balance of CZK 38.6bn (1.3% of GDP).