The Czech current account deficit narrowed to CZK 2.9bn (EUR 107.4mn) in September 2013 from CZK 14.2bn (EUR 556mn) the month before helped by expanding trade surplus, while the income balance and the balance of current transfers continued to post deficits, data from the central bank showed. The reading was below market expectations as analysts were forecasting a deficit of CZK 5.75bn, according to a Reuters poll.

The surplus on trade in goods increased three-fold on the month to CZK 19.7bn in September, while the surplus on services nearly halved to CZK 2.8bn.

The income account deficit stood at CZK 23.9bn in September, broadly unchanged from August. Dividends totalling CZK 20.4bn were paid out in September, the central bank said.

The current transfers deficit widened by 14% on the month to CZK 1.6bn in September. The balance of current transfers included a surplus of CZK 19bn on transfers from the EU budget to the Czech Republic.

On an annual basis, the current account balance also showed an improvement in September 2013 as in the same month last year it had a deficit of CZK 8.8bn.

The 12-month rolling deficit stood at CZK 53.7bn, equalling to 1.5% of full-year GDP forecast, according to IntelliNews calculations.

According to the finance ministry’s October macroeconomic forecast, the current account deficit should narrow to 1.7% of GDP in 2013 from 2.4% in 2012. In the October edition of its World Economic Outlook, the IMF forecast this year’s Czech current account gap at 1.8% of the economic output, while the European Commission sees it at 1.6%.