Balance of payments – commentary

May 2026

The current account deficit amounted to CZK 38.3 billion in May. The balance of goods and services ended in a surplus of CZK 35.9 billion. Direct investment dividends totalling CZK 55.4 billion were recorded on the debit side of the primary income balance. Income and capital transfers include a negative balance of transactions vis-à-vis EU institutions, totalling CZK 1.7 billion.

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

Net capital inflows on the financial account (net borrowing) reached CZK 12 billion in May. A transaction decrease in assets vis-à-vis non-residents of CZK 27.1 billion was recorded, while transaction growth in liabilities to non-residents amounted to CZK 15.1 billion. Foreign direct investment recorded a net capital outflow of CZK 7.7 billion. The balance of flows in debt instruments showed an outflow of CZK 24.8 billion, while the balance of flows into equity capital recorded an inflow of CZK 17.1 billion. Portfolio investment recorded a net capital outflow of CZK 1 billion, reflecting a combination of a transaction increase in assets vis-à-vis non-residents of CZK 10 billion and an increase in liabilities of CZK 9 billion. The growth in assets was driven primarily by residents’ investment in foreign equity and investment fund shares (CZK 10.4 billion). On the liabilities side, purchases of Czech debt securities by non-residents contributed to the overall development of portfolio investment (CZK 7.8 billion).

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

Other investment recorded a net capital outflow of CZK 1.1 billion amid a transaction decrease in both liabilities to non-residents (CZK 40.4 billion) and assets vis-à-vis non-residents (CZK 39.4 billion). The decrease in liabilities was predominantly driven by non-residents’ deposits with domestic banks (including the central bank), which fell by CZK 48.7 billion. On the asset side, developments were influenced by a transaction decrease in loans vis-à-vis non-residents (CZK 46.7 billion). International reserves declined by CZK 21.9 billion in May due to transactions.