Balance of payments – commentary

May 2019

The current account surplus amounted to CZK 11.2 billion in May. The goods and services balance recorded a surplus of CZK 42.9 billion. Primary income debits included dividends on direct investment of CZK 26.3 billion. Primary and secondary income included a surplus of CZK 0.7 billion on transfers to the Czech Republic from the EU budget. On the capital account, a total of CZK 3.4 billion was drawn from the EU budget. 

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

The inflow of capital on the financial account (net borrowing) totalled CZK 4.7 billion owing to liabilities rising faster than assets. The net inflow of foreign direct investment was CZK 18.1 billion, of which net reinvested earnings amounted to CZK 8.2 billion. The inflow of portfolio investment amounting to CZK 6.4 billion (net borrowing) was affected mainly by a decrease in assets. On the liabilities side, non-residents’ investment in koruna government bonds recorded an increase.  

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

Other investment recorded an outflow of funds (net lending) of CZK 13.3 billion. The outflow of other capital was affected mainly by a change in the short-term international position of other economic sectors (corporations). Transactions for CNB clients resulted in an increase in international reserves of CZK 7.1 billion (adjusted for valuation differences).