Bank Board member Miroslav Hrnčíř comments on the trade balance in January 2000

The trade deficit in January 2000 (of CZK -9.1 billion, with exports amounting to CZK 77.7 billion and imports CZK 86.8 billion; CNB predicted deficit: CZK -6 billion) was attributable to raw materials prices (to ensure imports of the same physical volume of oil as in January last year, it was necessary spend approximately CZK 1.8 billion more) and to ad hoc imports of two aircraft (totalling around CZK 3.5 billion).

The deficit is thus a result of a marked pick-up in import growth (year-on-year growth of 39.5%), and not a consequence of an export deceleration (growth of 29.5%). Despite the expected high prices of energy raw materials (which will persist at least until the end of 2000 Q1) and the advised investment imports, we do not expect - owing to further expected growth in exports - any major change in the full-year trade deficit (current prediction: between CZK 77 billion and CZK 83 billion).

Responsible:
Pavel Palivec, Public Relations Division