The balance of trade in October reached a surplus of CZK 4.4bn. Exports increased by 19.8% y/y, while imports moved up by only 19.2%. Foreign trade didn't bring any surprises so it shouldn't have any impact on the koruna exchange rate. In real terms, this year’s October surplus in the trade balance should be about the same as last year’s balance. Better terms of trade, which were helped by the decline in oil prices, contributed to more the favorable nominal results. For the whole year, the surplus is heading towards CZK 45bn after last year’s CZK 38.6bn.
The CNB reports the 3Q06 balance of payments today. According to the monthly data, the current account deficit should decline to CZK 50.8bn from CZK 52bn. On yearly basis, the current account deficit should increase to 3.8% of GDP from 3.2% in the second quarter. The inflow into the financial account should see an increase due to the reinvested earnings of foreign investors.