Preliminary data from the Czech Statistical Office (ČSÚ) reveals a remarkable turnaround in the foreign trade landscape of the Czech Republic, culminating in a surplus of 122.8 billion CZK—a stark contrast to the deficit of 204.8 billion CZK reported in the previous year, 2022.

A notable factor driving this turnaround is the reduction in the deficit in trade with oil and natural gas, which significantly contributed to the overall gains. In December 2023, the trade balance closed with a surplus of 3.5 billion CZK, marking an impressive improvement of 5.9 billion CZK year-on-year.

Despite the positive overall trend, year-on-year exports experienced a decline of 7.2%, amounting to 317.7 billion CZK, while imports dropped by 8.9% to 314.2 billion CZK. However, after seasonal adjustment, exports demonstrated a modest increase of 1.6%, and imports rose by 4.2% month-on-month. It’s worth noting that December 2023 had two fewer working days compared to December 2022, influencing the year-on-year comparison.

Jana Mazánková, head of the ČSÚ’s trade balance department, emphasized that while there was an overall decline in exports and imports, the trade balance remained positive in December. She highlighted significant year-on-year declines in exports of computers, machinery, and equipment, as well as corresponding import reductions in electrical equipment and oil and natural gas.

The favorable shift in the overall balance of foreign trade with goods was attributed to several factors, including a smaller deficit in trade with oil and natural gas, driven by declining prices on global markets. Additionally, improvements were noted in trade balances with electrical equipment and chemicals and preparations, further contributing to the positive trade outlook.

The robust performance of Czech foreign trade underscores the resilience and adaptability of the economy amidst evolving global dynamics, positioning the country for continued growth and competitiveness in international markets.

Article by Prague Forum