Czech Current Account Deficit Shrinks In July

Sep 12, 2007 - The Czech Republic's current account deficit contracted to CZK8.79 billion in July from CZK12.87 billion in June, the Czech Central Bank said Wednesday. The official data showed that the decrease is mainly due to estimated reinvested direct investment earnings. The current account deficit came in well below the market forecast of CZK19.50 billion for July.

In July, net inflow of direct investment came in at CZK22 billion, of which estimated reinvested earnings were around CZK10.4 billion.

The official data showed that the net outflow of portfolio investment of CZK11.4 billion was mainly affected by a deficit in equity securities transactions. The annual net inflow of foreign direct investment and total annual net portfolio investment outflow continues to grow slightly in recent months.

At the same time, other investment showed a deficit of CZK6.3 billion, owing to changes in international short-term positions of monetary financial institutions.