Balance of payments – commentary

December 2024

The current account surplus amounted to CZK 15.2 billion in December. The balance of goods and services showed a surplus of CZK 30.7 billion. Direct investment dividends totalling CZK 11.1 billion were recorded on the debit side of the primary income balance. Income and capital transfers included a surplus of CZK 51.2 billion on transactions vis-a-vis EU institutions.

Current account
(CZK billions)
Balance of payments – monthly – chart 1 – Current account

The net outflow of capital on the financial account (net lending) amounted to CZK 4.7 billion in December, with the increase in non-residents’ assets (CZK 169.6 billion) exceeding the growth in residents’ liabilities to non-residents (CZK 164.9 billion). The net capital outflow within foreign direct investment was CZK 11.4 billion, driven by debt instruments (CZK 15.6 billion). Portfolio investment recorded a net capital inflow of CZK 154.3 billion, linked mainly to an increase in non-residents’ holdings of debt securities issued by resident banks (CZK 163.0 billion). The growth in non-residents’ holdings of securities within portfolio investment was partly offset by a decrease in bonds issued by general government (CZK 22.2 billion).

Direct and portfolio investment
(CZK billions)
Balance of payments – monthly – chart 2 – Direct and portfolio investment

Other investment showed a net capital outflow of CZK 130.4 billion. The increase in assets under other investment (CZK 101.8 billion) was accompanied by a decline in residents’ liabilities to non-residents (CZK 28.7 billion). On the asset side, the increase was due chiefly to growth in deposits of resident commercial banks (CZK 40.6 billion) and other sectors (CZK 25.9 billion) with non-residents and loans provided by general government to non-residents (CZK 31.4 billion). On the liabilities side, the decline was driven mainly by falling deposits of non-residents with resident commercial banks, including the CNB (CZK 54.8 billion). The decrease in liabilities under other investment was partly offset by an increase in long-term loans provided to other sectors by non-residents (CZK 36.2 billion). International reserves increased by CZK 20.2 billion in December owing to financial transactions.