CNB commentary on the data published for July 2026
The current account deficit amounted to CZK 34.2 billion in July. The balance of goods and services ended in a surplus of CZK 15.8 billion. Foreign direct investment dividends totalling CZK 37.8 billion were recorded on the debit side of the primary income balance. Income and capital transfers include a surplus on transactions with EU institutions, totalling CZK 10.9 billion.
Net capital inflows on the financial account (net borrowing) reached CZK 6.9 billion in July. Transaction growth in liabilities to non-residents reached CZK 41.3 billion, while transaction growth in assets vis-à-vis non-residents amounted to CZK 34.4 billion. Foreign direct investment recorded a net capital outflow of CZK 33.0 billion. The balance of flows in debt instruments showed an outflow of CZK 21.3 billion, while the outflow of capital into equity capital amounted to CZK 11.7 billion. Portfolio investment recorded a net capital inflow of CZK 7.5 billion amid transaction growth in both liabilities to non-residents (CZK 17.4 billion) and assets vis-à-vis non-residents (CZK 9.9 billion). The growth in liabilities within the portfolio investment category was driven mainly by increasing non-resident holdings of bonds issued by domestic commercial banks (CZK 13.4 billion) and general government (CZK 7.8 billion). On the asset side, purchases of non-resident equity holdings by other resident sectors contributed most to the growth (CZK 8.7 billion).
Other investment recorded net capital inflows of CZK 45.0 billion amid transaction growth in both liabilities to non-residents (CZK 15.5 billion) and, conversely, a transaction decrease in assets vis-à-vis non-residents (CZK 29.4 billion). The main driver of the growth in liabilities under other investment was an increase in deposits of non-residents with domestic banks (including the central bank) of CZK 11.5 billion. On the asset side, a decline was recorded in transactions involving deposits with non-resident entities (CZK 21.2 billion) and loans from non-residents (CZK 11.1 billion). International reserves picked up by CZK 15.6 billion in July owing to transactions.
| Key monthly BoP indicators (CZK bn) | July 2026 | June 2026 | July 2025 |
|---|---|---|---|
| Current account balance | -34.2 | -65.2 | -27.0 |
| Current account balance (12-month cumulated transactions) | -3.2 | 4.0 | 75.6 |
| Net direct investment | 33.0 | -2.8 | -22.6 |
| Net direct investment (12-month cumulated transactions) | 27.9 | -27.7 | -121.1 |
| Net portfolio investment | -7.5 | 4.1 | -39.7 |
| Net portfolio investment (12-month cumulated transactions) | 133.3 | 101.1 | -121.8 |