Balance of payments – commentary

February 2025

The current account surplus amounted to CZK 43.8 billion in February. The goods and services balance ended in a surplus of CZK 52.5 billion. Direct investment dividends totalling CZK 2.8 billion were recorded on the debit side of the primary income balance. Income and capital transfers included a surplus on transactions of CZK 7.7 billion vis-à-vis EU institutions.

Current account
(CZK billions)

Net capital outflows on the financial account (net lending) amounted to CZK 20.9 billion in February, due to a stronger increase in assets vis-à-vis non-residents (CZK 76.6 billion) than in liabilities to non-residents (CZK 55.7 billion). Foreign direct investment recorded a net capital inflow of CZK 14.1 billion, driven significantly by non-debt instruments flows (CZK 8.2 billion). Portfolio investment recorded a net capital outflow of CZK 33.2 billion, linked mainly to declining non-resident holdings of debt securities issued by resident banks and general government (CZK 16.0 billion). On the asset side, the outflow was driven to a similar extent by an increase in holdings of non-resident securities by other resident sectors (CZK 14.8 billion).

Direct and portfolio investment
(CZK billions)

Other investment recorded a net capital inflow of CZK 21.0 billion, as the increase in liabilities vis-à-vis non-residents (CZK 50.6 billion) exceeded the growth in assets to non-residents (CZK 29.6 billion). Within other investments, the most significant movements were recorded in the resident banking sector (including the central bank), where, on the liabilities side, non-residents’ deposits rose by CZK 47.5 billion. The net capital inflow was partly offset, mostly by an increase of CZK 17.6 billion in deposits of resident banks (including the central bank) with non-residents. International reserves picked up by CZK 21.4 billion in February owing to financial transactions.