Balance of payments – commentary

February 2019

The current account surplus was CZK 26.6 billion in February owing to a surplus on the goods and services balance. The goods and services balance recorded a surplus of CZK 37.1 billion. Primary and secondary income included a deficit of CZK 6.1 billion on transfers from the Czech Republic to the EU budget. The annual current account surplus total has been decreasing gradually in recent months.

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

The outflow of capital on the financial account (net lending) totalled CZK 29.1 billion owing to growth in assets and a drop in liabilities. The net inflow of foreign direct investment reached CZK 5.1 billion. Net reinvested earnings amounted to CZK 6.8 billion. The inflow of portfolio investment amounting to CZK 15.6 billion (net borrowing) was affected on the liabilities side by growth in non-residents’ investment, especially in government bonds.

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 52.4 billion. The other capital outflow was due chiefly to a change in the short-term international position of the banking sector (a decrease in short-term liabilities). Transactions for CNB clients resulted in a decrease in international reserves of CZK 2.9 billion (adjusted for valuation differences).