Balance of payments – commentary

May 2020

The current account surplus amounted to CZK 4.2 billion in May. The balance of goods and services showed a surplus of CZK 19.6 billion. On the liabilities side, the primary income balance shows dividends paid on direct investment in the amount of CZK 10.6 billion. Primary and secondary income included a surplus of CZK 4.3 billion on transfers to the Czech Republic from the EU budget. The capital account included transfers of CZK 9.2 billion from the EU budget. 

Current account
(CZK billions)
Balance of payments – monthly – chart 1 – Current account

The outflow of capital on the financial account (net lending) totalled CZK 16.9 billion owing to assets rising faster than liabilities. The net inflow of foreign direct investment was CZK 5.1 billion, of which estimated reinvested earnings were CZK 6.2 billion. The net portfolio investment outflow of CZK 44.2 billion (net lending) was due mainly to a decline in the volume of investment by non-residents in bank bonds.  

Direct and portfolio investment
(CZK billions)
Balance of payments – monthly – chart 2 – Direct and portfolio investment

Other investment recorded an inflow of capital (net borrowing) of CZK 38.3 billion. The inflow in other capital was due primarily to a change in the banking sector’s short-term international position. Transactions for CNB clients resulted in an increase in the CNB’s international reserves of CZK 16.3 billion (adjusted for valuation changes).