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CZECH REPUBLIC: Trade deficit widens as imports rise, exports decline

posted onSeptember 22, 2017
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The Czech Republic's exports rose 6.1 percent year-on-year in July 2017 to CZK 295.5 (13.58$ ) billion, after a 4.6 percent surge in June, led by sales of beverages & tobacco (10.7 pct vs 7 pct); crude materials (6 pct vs 15.3 pct) and machinery & transport (8.8 pct vs 4.2 pct) according to Trading Economics.

The top export destinations of the Czech Republic were Netherlands (sales rose 26.3 pct), followed by China (19 pct) and the UK (14.4 pct). Imports advanced at a faster 8.4 percent to CZK 275.1 billion, from a 6.2 percent jump in June, boosted by purchases of beverages & tobacco (20.5 pct vs 11.7 pct); crude materials (20.2 pct vs 7 pct); machinery & transport (10.2 pct vs 4.9 pct); manufactured goods (8.4 pct vs 8.1 pct) and mineral fuels & lubricants (9.5 pct vs 13.3 pct) notes the source. Most imports came from Russia (up 47.6 pct), the US (20 pct) and China (19.6 pct).

Based on statistics from the International Monetary Fund’s World Economic Outlook Database, in 2016, the Czech Republic shipped US$162.8 billion worth of goods around the world. 88.3% of Czech exports by value were shipped to other European countries while 6.7% were delivered to Asia. Another 2.7% were shipped to North America, with only 1% going to Africa. Czech Republic’s top 10 exports accounted for three-quarters (74.7%) of the overall value of its global shipments.

The top 10 export products were:

1. Vehicles: US$34.4 billion (21.1% of total exports) 2. Machinery including computers: $30.1 billion (18.5%) 3. Electrical machinery, equipment: $27.7 billion (17%) 4. Articles of iron or steel: $6.1 billion (3.7%) 5. Plastics, plastic articles: $5.5 billion (3.4%) 6. Furniture, bedding, lighting, signs, prefab buildings: $4.7 billion (2.9%) 7. Rubber, rubber articles: $3.6 billion (2.2%) 8.Toys, games: $3.3 billion (2%) 9.Mineral fuels including oil: $3.2 billion (1.9%) 10. Optical, technical, medical apparatus: $3.1 billion (1.9%).

Since Czech Republic’s total Gross Domestic Product amounted to $350.9 billion in 2016, exports accounted for about 46.4% of total Czech economic output. Given Czech Republic’s population of 10.6 million people, its total $162.8 billion in 2016 exports translates to roughly $15,300 for every resident in that country.

czech republic gdp growth rate

A balance of trade in Czech Republic averaged 6133.31 CZK Million from 1991 until 2017, reaching an all time high of 52259 CZK Million in April of 2016 and a record low of -39868 CZK Million in December of 1992 according to Trading Economics.

Five of the largest export companies with annual revenues exceeding 50 billion CZK are: 1. Škoda Auto A.S. (automobiles 2. Agrofert, A.S. (conglomerate) 3. RWE Supply & Trading CZ, A.S. (oil, gas) 4. Unipetrol, A.S. (chemicals) 5. ČEPRO, A.S. (oil, gas)

The Czech Republic at a glance

Area: 78 864 km2 Neighbouring countries: Germany, Poland, Slovakia, Austria Population: 10.5 million Capital: Prague (1.2 million inhabitants) Other large cities: Brno (378,000 inhabitants), Pilsen (169,000 inhabitants), Ostrava (292,000 inhabitants) GDP growth: 4.7% (Q2 2017) Inflation: 2.3% (June 2017) Unemployment: 2.9% (July 2017) Average gross salary: CZK 29,346 / €1,124 / $1,356 per month (Q2 2017) Source: Czech Statistical Office