Balance of payments – commentary

2026 Q1

The current account ended 2026 Q1 in a surplus of CZK 70.5 billion. The financial account recorded a net outflow of funds (net lending) of CZK 66.4 billion owing to higher transaction growth in external assets than external liabilities. The CNB’s reserve assets rose by CZK 101.8 billion (adjusted for valuation and price differences).

The result of the transactions was a current account surplus of 0.23% of GDP on an annual basis. The goods and services surplus was 5.62% of GDP.

The current account

Ratio of Current Account and Goods and Services Balance to GDP
(CZK billions, right-hand scale in %)

Note: Indicators calculated on the basis of annual moving aggregates

The goods and services balance recorded a surplus of CZK 149.1 billion in Q1. The balance fell by CZK 13.3 billion year on year at current prices. The goods balance ended in a surplus of CZK 114.1 billion, down by CZK 12.7 billion from a year earlier. The services balance showed a surplus of CZK 35 billion, representing a year-on-year decrease in the surplus of CZK 0.5 billion.

The primary income deficit was CZK 58.9 billion in Q1. Its year-on-year widening of CZK 14.3 billion was due mainly to a year-on-year increase in reinvested earnings distributed to foreign direct investors. These reinvested earnings amounted to CZK 79.9 billion, representing a year-on-year rise of CZK 9.5 billion.

Secondary income ended Q1 in a deficit of CZK 19.8 billion (a year-on-year widening of CZK 15.4 billion). The deficit was due mainly to a year-on-year deterioration in the balance of net income from the EU budget recorded in the secondary income balance.

The capital account

In Q1, the capital account ran a surplus of CZK 26.7 billion. The year-on-year rise in the surplus of CZK 7.9 billion was due to higher income from the EU budget recorded on the capital account.

The financial account

The financial account (including the change in the CNB’s reserve assets) recorded a net outflow (net lending abroad) of CZK 66.4 billion in Q1 owing to external assets increasing more markedly than external liabilities.

Ratio of Financial Account to GDP
(CZK billions, right-hand scale in %)

Note: Indicators calculated on the basis of annual moving aggregates

The financial account of the balance of payments in Q1 was largely affected by the entry of a Czech resident onto a foreign stock exchange, with the statistical recording in Q1 reflecting the related cross-border transactions in the areas of foreign direct investment and portfolio investment.

Foreign direct investment saw a net inflow of funds totalling CZK 144.7 billion. Liabilities transactions included purchases of shares in domestic companies by foreign parent companies (CZK 766.6 billion). The main factor on the asset side was the purchase of foreign shares by domestic investors (CZK 621.9 billion).

Portfolio investment recorded a net outflow (net lending) of CZK 183.9 billion. On the asset side, domestic investors purchased foreign equity securities totalling CZK 113.6 billion, while on the liabilities side, sales of domestic debt securities by non-residents amounting to CZK 72.9 billion were recorded.

Derivatives trading recorded a net inflow of funds from abroad totalling CZK 8.3 billion.

Other investment saw an inflow (net borrowing) of CZK 66.3 billion. This result reflected a net inflow of CZK 120.6 billion within deposits, while a net outflow was recorded in loans (CZK 61 billion).

The foreign exchange position of the banking sector (including the CNB) saw a net inflow of CZK 93.8 billion.

The position of other sectors within other investment recorded a net outflow of CZK 10.9 billion, driven mainly by a net outflow within deposits (CZK 13 billion).

The CNB’s own transactions and transactions for CNB clients resulted in an increase in reserve assets of CZK 101.8 billion (adjusted for valuation differences).