Česká národní banka


Balance of payments

2018 Q3

Simultaneously with the publication of the 2018 Q3 balance of payments figures, revised data for 2018 Q2 are being published. The revised data mainly take into account updated CZSO data on exports and imports of goods and services and, on the financial account, an update of data from statements submitted to the CNB by financial and non-financial entities.

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The current account ended 2018 Q3 in a deficit of CZK 44.7 billion. The financial account recorded an inflow of funds (net borrowing) of CZK 28.9 billion owing to liabilities rising faster than assets. Reserve assets decreased by CZK 6.4 billion (adjusted for valuation differences) as a result of a deficit on transactions for CNB clients. The current account surplus dropped to 0.3% of GDP (on an annual basis) owing mainly to a decline in the goods and services surplus to 6.6% of GDP.

The current account

Ratio of Current Account and Goods and Services Balance to GDP
(CZK billions, right-hand scale in %)

Ratio of Current Account and Goods and Services Balance to GDP

The goods and services balance recorded a surplus of CZK 55.9 billion in Q3. The year-on-year decrease in the surplus of CZK 18.2 billion was due to a drop in the goods surplus of CZK 9.9 billion (higher growth in imports than in exports) and a decrease in the services surplus of CZK 8.3 billion (mainly growth in imported research and advisory services).

The primary income deficit narrowed by CZK 4.2 billion year on year to CZK 90.1 billion. The main factor was lower dividends paid on direct and portfolio investment (CZK 78.6 billion).

Secondary income showed a deficit of CZK 10.5 billion, down by CZK 3.9 billion from a year earlier. This was due to an increase in net income from the EU budget recorded under secondary income.

The capital account

The capital account ended Q3 in a surplus of CZK 4.2 billion. The year-on-year decline in the surplus of CZK 4 billion was due mainly to lower revenues from the EU budget.

The financial account

The financial account (including the change in the CNB’s reserve assets) recorded a net inflow (net borrowing) of CZK 28.9 billion owing to external liabilities rising faster than external assets. 

Ratio of Financial Account to GDP
(CZK billions, right-hand scale in %)

Ratio of Financial Account to GDP

Direct investment recorded a net inflow of CZK 2.6 billion. This was due chiefly to reinvestment of earnings by foreign owners in domestic firms. On the asset side, earnings were reinvested and equity capital was increased by domestic firms in their foreign subsidiaries.  

Portfolio investment saw a net inflow (net borrowing) of CZK 2.2 billion. On the liability side, non-residents’ investment in securities rose by CZK 6.4 billion. Domestic investors increased their holdings of foreign securities by CZK 4.2 billion.

Derivatives trading recorded an inflow of CZK 0.1 billion.

Other investment saw an inflow (net borrowing) of CZK 17.6 billion.

The banking sector recorded a net inflow of CZK 12.1 billion owing to a change in its short-term international position (excluding reserve assets).

The government sector recorded a net outflow of CZK 3.5 billion due to repayment of financial loans.

The other sectors saw a net inflow of CZK 9 billion, due mainly to firms drawing on loans and trade credits.

A deficit on transactions for CNB clients resulted in a decrease in reserve assets of CZK 6.4 billion (adjusted for valuation differences).