Česká národní banka


Balance of payments

2018 Q1

The current account ended 2018 Q1 in a surplus of CZK 58.8 billion. The financial account recorded an outflow of funds (net lending) of CZK 43.7 billion owing to growth in assets and a fall in liabilities. Reserve assets decreased by CZK 4.2 billion (adjusted for valuation differences) as a result of transactions for CNB clients. The current account surplus dropped to 0.3% of GDP (on an annual basis) owing to a rise in the primary and secondary income deficits. The goods and services surplus decreased slightly to 7.0% 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 ended Q1 in a surplus of CZK 113.1 billion. The year-on-year decrease in the surplus of CZK 4.2 billion was due to a drop in the goods surplus of CZK 7.7 billion. The services surplus rose by CZK 3.5 billion due mainly to a year-on-year decline in services imports. The growth in the travel surplus was due to a year-on-year rise in receipts from tourism.

The primary income deficit widened by CZK 29.3 billion year on year to CZK 34.1 billion. The main factor was growth in dividends paid on direct investment. Dividends paid amounted to CZK 38.4 billion.

Secondary income showed a deficit of CZK 20.2 billion, up by CZK 5.2 billion on a year earlier. This was due to a decrease in net income from the EU budget recorded under secondary income.

The capital account

The capital account ended Q1 in a surplus of CZK 5.7 billion. The year-on-year rise in the surplus of CZK 4.7 billion was due to higher sales of emission permits abroad.

The financial account

The financial account including the change in the CNB’s reserve assets) recorded a net outflow (net lending) of CZK 43.7 billion owing to an increase in assets and a simultaneous decrease in liabilities. 

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 8.5 billion. This was due chiefly to reinvestment of earnings by foreign owners in domestic firms. Equity other than reinvestment of earnings includes the payment of superdividends totalling CZK 38.5 billion on the liability side. On the asset side, there were increases in the equity capital of foreign subsidiaries by domestic firms.

Portfolio investment saw a net inflow (net borrowing) of CZK 49.9 billion. On the liability side, holdings of short-term government bonds by foreign investors increased. On the asset side, domestic investors reduced their holdings of foreign securities by CZK 5.6 billion.

Derivatives trading recorded an outflow totalling CZK 0.9 billion.

Other investment saw an outflow (net lending) of CZK 105.4 billion.

The banking sector recorded a change in the position of banks as a result of repayment of short-term deposits accepted. The net outflow including the CNB (excluding reserve assets) was CZK 51.2 billion.

Other sectors saw a net outflow of CZK 50.8 billion, due mainly to growth in short-term assets of corporations.

The government sector made repayments of loans drawn in the past and recorded a net outflow totalling CZK 3.4 billion.

A deficit on transactions for CNB clients resulted in a decrease in reserve assets of CZK 4.2 billion (adjusted for valuation differences).