Prague

Czech foreign trade showed a surplus of Kc86.1bn last year, more than double the record-high figure seen in 2006, the Czech Statistical Office (CSU) said today.

The improvement came largely thanks to a higher surplus in the category of machinery and transport equipment, a lower deficit in trade in mineral fuels and a shift from a deficit into a surplus with raw materials.

On the other hand, Czech trade balance worsened in the categories of chemical products, semi-finished goods, materials and foodstuffs last year. Aggregate exports rose by 15 percent and imports by 13.1 percent in year-on-year terms.

In 2006, the Czech Republic had a revised foreign trade surplus of Kc39.8bn. Exports exceeded imports for the first time in 2005, and the trade surplus has been growing since that time.

“The trade balance figure is favourable also with respect to the record-high prices of crude oil and natural gas. Gains of the Czech crown to the euro and especially against the dollar have created a barrier that has been strong enough for the Czech economy not to experience the full impact of expensive raw materials,” CSOB analyst Petr Dufek said.

The year 2008 will see a further improvement in trade balance, he added. “There is a big chance that foreign trade surplus will exceed Kc100bn this year,” he said.

In December 2007, foreign trade ended up in a deficit of Kc1.1bn, a year-on-year improvement of Kc2.6bn and the best figure since 1993.

(Czech News Agency)

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