Czech current account swings to EUR 416mn deficit in April 2014

By bne IntelliNews June 13, 2014

The Czech current account swung into a deficit of CZK 11.4bn (EUR 416mn) in April 2014 from a revised surplus of CZK 23.7bn the month before, data from the central bank showed. The deterioration reflects a wider deficit in the income account and smaller surpluses on trade in goods and services.

The trade surplus shrank by 23% m/m to CZK 23.9bn and the surplus in the services account narrowed by 10% m/m to CZK 5.9bn in April.

The income balance ran a deficit of CZK 51.7bn in April, much higher than the CZK 12bn gap in the previous month. Dividends totalling CZK 38.2bn were paid in April, the central bank said. The balance of current transfers included a surplus of CZK 12bn on transfers from the EU budget to the Czech Republic.

On an annual basis, the Czech current account also deteriorated as in April 2013 it posted a surplus of CZK 7.4bn. The 12-month rolling deficit stood at CZK 12.5bn, equalling to 0.4% of the full-year GDP forecast, according to IntelliNews calculations.

According to the finance ministry’s April macroeconomic forecast, the current account deficit should narrow to 0.4% of GDP in 2014 from 1.4% the year before.

Balance of Payments (CZK mn)            
  Jan/14 Feb/14 March/14 April/14 Jan-April/14 April/13
I Current Account 26 010 22 599 23 660 -11 424 60 845 7 417
A. Trade balance 20 828 20 166 31 194 23 882 96 070 21 751
B. Balance of services 6 531 7 011 6 531 5 869 25 942 5 235
C. Income balance -5 761 -7 217 -11 991 -51 074 -76 043 16 272
D. Current transfers 4 413 2 639 -2 074 9 898 14 876 3 298
II Capital Account 38 91 21 232 24 21 385 24
III Financial Account -17 385 -21 242 -27 194 26 373 -39 448 3 691
Source: Czech central bank            

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