Exports and imports grew year on year in 2010 by 17.7 percent and 20.3 percent, respectively, data published Monday by the Czech Statistical Office (ČSÚ). Exports for all of 2010 totalled Kč 2.518 trillion, while imports were Kč 2.393 trillion.
For the full year, the trade balance showed a surplus of Kč 124.5 billion, which was by Kč 25.0 billion lower, year on year (y/y). Increases in surpluses were posted in miscellaneous manufactured articles and machinery and transport equipment. The balance improved in trade in animal and vegetable oils, fats and waxes, with a deficit turning into a surplus.
On the other hand, the balance deteriorated in mineral fuels, lubricants and related materials, chemicals and related products and food and live animals. The surplus decreased in trade in manufactured goods classified chiefly by material, crude materials, inedible, except fuels, and beverages and tobacco.
Analysts were upbeat about the news, but found it to be in line with expectations. “The result of the foreign trade [for the full year] brought no surprise. … After adjusting for commodities and solar panel imports, foreign trade has improved significantly,” Jiří Škop, an analyst at Komerční banka, said in market analysis.
In 2010, the external trade with EU member states showed a surplus of Kč 593.5 billion, which was by Kč 109.3 billion higher, y/y. The trade gap with non-EU countries grew by Kč 134.3 billion to reach Kč 468.9 billion. ‘After adjusting for commodities and solar panel imports, foreign trade has improved significantly.’
The 2010 surplus was up in trade with Germany (by Kč 26.2 billion), Slovakia (by Kč 18.8 billion), the UK (by Kč 11.1 billion), France (by Kč 10.4 billion) and Italy (by Kč 10.3 billion). The deficit deepened in trade with China (by Kč84.2 billion), South Korea (by Kč 11.8 billion), Azerbaijan (by Kč 9.7 billion) and Russia (by Kč 9.4 billion).
Strong results for December
Exports and imports at current prices rose by 27.0 percent and 28.5 percent y/y in December, respectively. The December trade balance ended up with a surplus of Kč 1.0 billion, which was by Kč 1.7 billion lower, y/y. Exports for December were Kč 209.316 billion, while imports were Kč 208.330 billion. Seasonally adjusted exports and imports rose by 2.0 percent and 1.6 percent, respectively, compared with November 2010.
Deputy Minister of Industry and Trade Milan Hovorka found the December results to be quite remarkable, at least as far as exports are concerned. “More than Kč 200 billion in exports in December deserves [strong praise]. The result is by far the best in history, since December has traditionally been among the weaker months,” Hovorka said in statement. “I also believe that exporters have quite emptied their warehouses, and if so, they will be able to respond quickly with their production programs to keep the trend in dynamic export growth.” ‘This corresponds to what the economy needs — a development of its position within the EU while at the same time new opportunities on the global market are sought.’
He noted that exporters were not relying only on trade with the EU and Germany in particular, but also with markets outside the EU. “This corresponds to what the economy needs — a development of its position within the EU while at the same time new opportunities on the global market are sought. The record value of exports to not only China and India, but also other countries confirms this,” Hovorka said.
In December, trade surplus increases were recorded in trade in machinery and transport equipment and miscellaneous manufactured articles. On the other hand, the trade balance deteriorated in manufactured goods classified chiefly by material; crude inedible materials except fuels; and beverages and tobacco where a surplus turned into a deficit.
The deficit rose in and chemicals and related products and mineral fuels, lubricants and related materials. Total machinery and transport equipment exports went up by 29.6 percent year on year, or by Kč 26.9 billion. Exports grew in office machines and automatic data-processing machines; electrical machinery and appliances; and road vehicles.
Growth expected for 2011
KB’s Škop was optimistic for the coming year. “External demand is still strong, and export activity should, despite an expected decrease in car exports, once again deliver double-digit growth of around 11 percent. Lower solar panel imports should also prove positive (their balance deficit should shrink from Kč 34.6 billion in 2010 to only Kč 4.1 billion. The commodity balance is likely to deteriorate further, but to a lesser extent than in 2010. Overall, foreign trade could bounce back toward the Kč 150 billion. … The record was hit in 2009 at Kč 149.6 billion,” Škop said.
