Balance of payments – commentary

2026 Q2

The current account ended 2026 Q2 in a deficit of CZK 67.4 billion. The financial account recorded a net inflow of funds from abroad (net borrowing) of CZK 13.8 billion due to higher transaction growth in external liabilities than external assets. The CNB’s reserve assets rose by CZK 52.8 billion (adjusted for valuation and price differences).

The result of the transactions was a current account surplus of 0.04% of GDP on an annual basis. The goods and services surplus was 5.21% 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 105.3 billion in Q2. The balance fell by CZK 23.5 billion year on year at current prices. The goods balance ended in a surplus of CZK 80.6 billion, down by CZK 23.2 billion from a year earlier. The services balance showed a surplus (CZK 24.7 billion), representing a year-on-year decrease in the surplus of CZK 0.3 billion.

The primary income deficit was CZK 157.7 billion in Q2. The year-on-year decrease in the deficit of CZK 15.9 billion was due mainly to higher income from reserve assets.

Secondary income recorded a deficit of CZK 15.1 billion in Q2. The year-on-year increase in the deficit of CZK 4.9 billion was due mainly to a decline in the balance of net income from the EU budget recorded in the secondary income balance.

The capital account

In Q2, the capital account ran a surplus of CZK 19.3 billion. The year-on-year rise in the surplus of CZK 6.6 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 inflow (net borrowing) of CZK 13.8 billion in Q2 owing to external liabilities increasing more markedly than external assets.

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

Note: Indicators calculated on the basis of annual moving aggregates

Foreign direct investment saw a net outflow of funds totalling CZK 59.0 billion. The main factors on the asset side were the provision of foreign loans (CZK 40.0 billion), purchases of foreign shares and other equity by domestic investors (CZK 33.0 billion) and reinvested earnings (CZK 30.1 billion). Liabilities transactions included reinvested earnings (CZK 33.3 billion) and the receipt of foreign loans (CZK 10.2 billion).

Portfolio investment recorded a net outflow (net lending) of CZK 25.8 billion. On the asset side, domestic investors purchased foreign equity securities and investment fund shares totalling CZK 37.2 billion, while on the liabilities side, the most significant transactions in volume terms were purchases of domestic debt securities by non-residents amounting to CZK 40.2 billion.

Derivatives trading recorded a net inflow of funds from abroad totalling CZK 10 billion.

Other investment saw an inflow (net borrowing) of CZK 141.6 billion. This result mainly reflected a net inflow within deposits (CZK 83.4 billion) and loans (CZK 29.2 billion).

The CNB’s own transactions and transactions for CNB clients resulted in an increase in reserve assets of CZK 52.8 billion (adjusted for valuation differences).