Czech July foreign trade deficit dwindles year on year

Sep 4, 2007 - The Czech foreign trade deficit for July was 0.7 bln crowns, due to the negative balance of trade with semi-manufactured goods and materials, data published by the Czech Statistical Office (CSU) showed today.

However it also showed that over the last twelve months, the foreign trade balance is in surplus.

It is the first monthly foreign trade deficit this year - though the July balance has regularly been in deficit since 1993, the CSU said.

Compared with July 2006 the deficit is 2.7 bln crowns smaller, thanks to a growing surplus in export of cars and machinery, which rose by 19.7 pct year-on-year, an increase of 2.1 bln crowns, the data showed.

The balance for the last twelve months reached a surplus of 67.1 bln crowns, up by 36.7 bln compared with the last twelve-month period, the data showed.

Overall exports grew 20.7 pct year-on-year and imports rose 18.7 pct. In a month-on-month comparison, exports grew 4.8 pct and imports rose 1.9 pct.

"The deficit is due to the growth in the price of oil as well as the seasonal deterioration that takes place during summer holidays," said David Navratil, an analyst at Ceska Sporitelna.