The Czech current account slipped into a deficit of CZK 14.2bn (EUR 556mn) in August 2013 from a surplus of CZK 4.1bn the month before, data from the central bank showed. The deterioration reflected smaller surpluses on trade in goods and services and shortfalls on the income balance and the balance of current transfers. The reading exceeded market expectations as analysts were forecasting a deficit of CZK 12.65bn, according to a Reuters poll.

The surplus on trade in goods shrank by 53% on the month to CZK 6.1bn in August and the surplus on services more than halved to CZK 4.97bn.

The income account deficit widened to CZK 23.9bn in August from CZK 19.98bn a month earlier. Dividends totalling CZK 20.2bn were paid out in August, the central bank said.

The current transfers account also deteriorated turning into a CZK 1.4bn deficit from a surplus of CZK 323mn. The balance of current transfers included a surplus of CZK 0.3bn on transfers from the EU budget to the Czech Republic.

On an annual basis, however, the current account balance showed an improvement in August 2013 as in the same month last year it had a deficit of CZK 26.5bn.

The 12-month rolling deficit stood at CZK 46.4bn, equalling to 1.3% of full-year GDP forecast, according to IntelliNews calculations.

According to the finance ministry’s July macroeconomic forecast, the current account deficit should narrow to 2.3% of GDP in 2013 from 2.5% 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.