PRAGUE, Jan 13 (Reuters) - The Czech current account showed
a 1.98 billion crown ($106.1 million) deficit in November due to
deficits on the income balance, the balance of current transfers
and the services balance, the central bank said on Thursday.
Analysts in a Reuters poll had forecast a 1.75 billion crown
shortfall. The balance of goods ran a surplus, the data showed.
The rolling 12-month deficit widened to 109.0 billion
crowns, equal to about 2.95 percent of estimated 2010 gross
domestic product, according to Reuters calculations.
The amount of dividends paid was 4.4 billion crowns in
November. The data also showed the net inflow of direct
investment was 2.9 billion, of which net reinvested earnings
were 6.0 billion crowns. Capital inflow on the financial account
was 31.2 billion crown under ECB methodology.
****************************************************************
KEY POINTS:
(CZK billions) Nov Oct Nov fcast
Current Account -1.98 0.62 -1.75
Financial Account 31.24 11.91 n/a
Net Direct Investment 2.88 9.88 n/a
(For full table, double click on []
COMMENTS
PETR DUFEK, ANALYST, CSOB
"The structure is typical: surplus on the trade balance and
deficits everywhere else."
"The number means no impetus for markets, the main action is
going on abroad."
"Excluding reinvestment, current account would be nearly at
zero."
"What is also apparent from the data is the solid dividend
outflow abroad, which has significantly risen and came close to
the record year of 2008."
DAVID MAREK, CHIEF ANALYST, PATRIA FINANCE
"The data is perfectly in line with estimates, it is no
surprise."
"We knew the trade balance from before and the income
balance, which includes dividends and reinvested profits, has
also met expectations, so no surprise."
"The Czech Republic external balance remains under control."
JAROMIR SINDEL, CHIEF ECONOMIST, CITIBANK, PRAGUE
"The data are in line with expectations. The current account
was driven by the trade surplus and dividend outflow. At the
same time we can see some milder flows of FDI, which is slightly
negative but usual for this time of year."
DETAILS
- The balance of current transfers includes a deficit of 2.8
billion crowns on transfers from the Czech Republic to the EU
budget.
- The capital account includes transfers of about 0.4 billion
crowns from the EU budget.
- The annual current account deficit total has increased in the
longer run.
- Portfolio investment was balanced.
- The annual net direct investment inflow total (in the
longer-running trend) has been increasing.
- The annual net portfolio investment total (in the
longer-running trend) has been showing a rising inflow of funds.
- Other investment ran a surplus of 13.1 billion crowns, owing
to a change in the short-term international position of banks.
- Other sectors saw an increase in corporate assets abroad.
- The government drew on an EIB loan of 2 billion crowns for
transport infrastructure development.
- The balance of transactions carried out for the central bank
clients (adjusted for valuation changes) resulted in a 15.5
billion crown drop in international reserves.
BACKGROUND:
- Analyst expectations before data release []
- Czech November foreign trade figures []
- Polish October C/A data []
- Slovak October C/A data []
- Hungary's Q3 C/A data []
- Report on last Czech c.bank rate decision......[]
[]
LINKS:
- For further details on November 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 <ECONCZ>
- Instant Views on other Czech data []
- Overview of Czech macroeconomic indicators []
- Key data releases in central Europe []
- For Czech money markets data click on <CZKVIEW>
- Czech money guide <CZK/1>
- Czech benchmark state bond prices <0#CZBMK=>
- Czech forward money market rates <CZKFRA>
(Reporting by Jana Mlcochova; editing by Michael Winfrey)
