The Czech current account swung into a surplus of CZK 7.76bn (EUR 282mn) in October 2013 from a revised deficit of CZK 6.85bn the month before, data from the central bank showed. The improvement reflected surpluses on trade in goods and services and current transfers, while the income balance ended in a deficit. The reading defied market expectations as analysts were forecasting a deficit of CZK 2.3bn, according to a Reuters poll.

The surplus on trade in goods shrank by 9% on the month to CZK 19bn in October, whereas the services surplus more than doubled to CZK 5.5bn.

The income account deficit narrowed by 33% to CZK 19.1bn in October. Dividends totalling CZK 12.9bn were paid out in October, the central bank said.

The balance of current transfers included a surplus of CZK 4.1bn on transfers from the EU budget to the Czech Republic.

On an annual basis, the current account also showed an improvement in Octoer 2013 as in the same month last year it had a deficit of CZK 15.6bn.

The 12-month rolling deficit stood at CZK 43.1bn, equalling to 1.2% 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%.