Balance of payments – commentary

November 2024

The current account surplus amounted to CZK 30.0 billion in November. The goods and services balance ended in a surplus of CZK 50.1 billion. Direct investment dividends totalling CZK 12.0 billion were recorded on the debit side of the primary income balance. Income and capital transfers included a deficit on transactions of CZK 3.5 billion vis-à-vis EU institutions. 

Current account
(CZK billions)

Net capital inflows on the financial account (net borrowing) amounted to CZK 12.8 billion in November, with the increase in residents’ liabilities to non-residents (CZK 37.4 billion) exceeding the growth in residents’ assets vis-à-vis non-residents (CZK 24.6 billion). The net capital outflow within foreign direct investment was CZK 7.1 billion, driven mainly by debt instruments (CZK 9.8 billion). Portfolio investment recorded a net capital inflow of CZK 46.9 billion, linked mainly to an increase in non-residents’ holdings of long-term debt securities issued by general government (CZK 33.8 billion) and resident banks (CZK 10.3 billion). 

Direct and portfolio investment
(CZK billions)

Other investment recorded a net capital outflow of CZK 16.8 billion. The increase in assets under other investment (CZK 12.2 billion) was accompanied by a decline in residents’ liabilities to non-residents (CZK 4.6 billion). On the asset side, the increase was due chiefly to deposits with non-residents (CZK 5.3 billion) and loans provided by the banking sector to non-residents (CZK 3.8 billion). On the liabilities side, the decline was driven mainly by falling deposits of non-residents with resident commercial banks (CZK 7.8 billion). International reserves picked up by CZK 8.6 billion in November owing to financial transactions.