Balance of payments – commentary

September 2024

The current account deficit amounted to CZK 8.7 billion in September. The goods and services balance ended in a surplus of CZK 42.9 billion. Direct investment dividends totalling CZK 49.9 billion were recorded on the debit side of the primary income balance. Income and capital transfers included a deficit on transactions of CZK 3.8 billion vis-à-vis EU institutions.

Current account
(CZK billions)

Net capital inflows on the financial account (net borrowing) amounted to CZK 41.7 billion in September, with the increase in liabilities to non-residents (CZK 96.2 billion) exceeding the growth in residents’ assets vis-à-vis non-residents (CZK 54.5 billion). The capital inflow within foreign direct investment was CZK 17.7 billion, driven mainly by debt instruments (CZK 15.6 billion). Portfolio investment recorded a net capital inflow of CZK 59.8 billion, linked mainly to an increase in non-residents’ holdings of debt securities issued by banks (CZK 25.7 billion) and general government (CZK 22.5 billion).

Direct and portfolio investment
(CZK billions)

Other investment recorded a net outflow of capital of CZK 46.6 billion amid a faster increase in assets (CZK 63.5 billion) than in liabilities vis-à-vis the rest of the world (CZK 16.9 billion). On the asset side, this was associated mainly with increasing deposits with the rest of the world (CZK 64.9 billion). On the liabilities side, by contrast, the growth in liabilities under other investment was driven mainly by the increase in residents’ liabilities to non-residents (CZK 12.8 billion). International reserves declined by CZK 9.9 billion in September owing to financial transactions.