INSTANT VIEW 2-Czech Dec c/a gap widens more than mkt forecast

    The Czech current account deficit 
widened more than markets had expected to 16.26 billion crowns 
($747.6 million) in December, from a 11.15 billion crown gap a 
month earlier, data showed on Monday. 
    The 12-month rolling deficit more than doubled over a year 
ago to 151.13 billion crowns, or 4.7 percent of this year's 
estimated gross domestic product (GDP) according to Reuters' 
calculations, from 2.1 percent of GDP in 2005. 
 
KEY POINTS: 
(CZK billions)           Dec         Nov           Dec forecast 
Current Account         -16.26      -11.15         -12.00 
Financial Account        17.66       19.88           n/a 
Net Direct Investment    23.20        3.79           n/a 
 
 (For full table, double click on..................[nPRA001148]) 
 
- The monthly gap is mainly due to a 11.5 billion crown 
shortfall on the income balance, including dividend payouts and 
reinvested profits on foreign investment. The income deficit 
narrows from a 17.8 billion gap a month earlier. 
- The balance of foreign trade in both goods and services shows 
a 4.7 billion crown deficit for the month, following a 8.9 
billion surplus in November. 
- Net foreign direct investment inflows total 23.2 billion 
crowns, which includes 8.1 bilion crowns in reinvested profits. 
- Portfolio investments show a net 10.1 billion crown inflow, 
mainly due to purchases of local currency government bonds by 
foreign investors. 
 
COMMENTARY: 
    PETR DUFEK, ANALYST, CSOB BANK, PRAGUE 
    "It can be said that the December result is not very 
favourable. The high income balance deficit has become a 
traditional feature (of the release) ... The results are worse 
than the market had expected but they will be soon offset by the 
sentiment on regional and core markets." 
 
MARKET REACTION: 
- Crown holds flat at 28.287 per euro  by 0911 GMT 
from 28.285 just before the data release. 
 
BACKGROUND: 
- Analyst expectations before data release       [ID:nL01866382] 
- Czech Dec foreign trade figures                [ID:nL05800500] 
- Polish Nov C/A                                 [ID:nL16528975] 
- Slovak Nov C/A gap                             [ID:nPRG000216] 
- Hungary's Q3 C/A gap                           [ID:nL29754016] 
- Report on last Czech c.bank rate decision      [ID:nPRA001122] 
                                 [ID:nL25513531] [ID:nL02157584] 
 
LINKS: 
- For further details on December of payments numbers and past 
data, Reuters 3000 Xtra users can click on the Czech National 
Bank's website: 
    http://www.cnb.cz/en/statistics/bop_stat/ 
 
- For LIVE Czech economic data releases, click on        
- Instant Views on other Czech data                 [CZ/INSTANT] 
- Overview of Czech macroeconomic indicators            [CZ/ECI] 
 
- Key data releases in central Europe    [CEE-CONVERGENCE-WATCH] 
- For Czech money markets data click on                 
- Czech money guide                                       
- Czech benchmark state bond prices                    
- Czech forward money market rates                       
 
 ((Writing by Marek Petrus; Editing by Alan Crosby; 
prague.newsroom@reuters.com; Reuters Messaging: 
marek.petrus.reuters.com@reuters.net; +420 224 190 477)) 
 ($1=21.75 Czech Crown) 
  Keywords: CZECH ECONOMY/BALANCE  
    

[PRAGUE/Reuters/Finance.cz]