Balance of payments – commentary

January 2025

The current account surplus amounted to CZK 34.1 billion in January. The goods and services balance ended in a surplus of CZK 42.4 billion. Direct investment dividends totalling CZK 0.6 billion were recorded on the debit side of the primary income balance. Income and capital transfers included a surplus on transactions of CZK 4.0 billion vis-à-vis EU institutions.

Current account
(CZK billions)

Net capital outflows on the financial account (net lending) amounted to CZK 24.2 billion in January, with the decrease in liabilities to non-residents (CZK 34.5 billion) more pronounced than the decline in assets vis-à-vis non-residents (CZK 10.2 billion). Foreign direct investment recorded a net capital inflow of CZK 16.9 billion, driven significantly by debt instruments flows (CZK 9.9 billion). Portfolio investment recorded a net capital outflow of CZK 163.5 billion, linked mainly to a decrease in non-residents’ holdings of short-term debt securities issued by resident banks (CZK 150.6 billion). On the asset side, the capital outflow was further driven by an increase in other resident sectors’ holdings of securities issued by non-residents (CZK 10.1 billion).

Direct and portfolio investment
(CZK billions)

Other investment recorded a net inflow of capital of CZK 119.6 billion, due mainly to the growing volume of liabilities vis-à-vis the rest of the world (CZK 105.3 billion). Within other investments, the most significant movements were recorded in the resident banking sector (excluding the central bank). On the liabilities side, non-residents’ deposits rose by CZK 100.9 billion, while on the asset side, deposits with non-residents decreased by CZK 18.9 billion. Within long-term loans received, other resident sectors recorded an increase of CZK 4.9 billion. International reserves increased by CZK 1.3 billion in January owing to financial transactions.