Balance of payments – commentary

October 2024

The current account surplus amounted to CZK 13.0 billion in October. The goods and services balance ended in a surplus of CZK 35.8 billion. Direct investment dividends totalling CZK 13.0 billion were recorded on the debit side of the primary income balance. Income and capital transfers included a surplus on transactions of CZK 9.7 billion vis-à-vis EU institutions.

Current account
(CZK billions)

Net capital outflows on the financial account (net lending) amounted to CZK 31.0 billion in October, with the decrease in residents’ liabilities to non-residents (CZK 67.3 billion) exceeding the decrease in assets vis-à-vis non-residents (CZK 36.3 billion). The capital inflow within foreign direct investment totalled CZK 1.4 billion, driven mainly by shares and other equity (CZK 3.2 billion). Portfolio investment recorded a net capital outflow of CZK 24.2 billion, linked mainly to a decrease in non-residents’ holdings of long-term debt securities issued by general government (CZK 34.0 billion).

Direct and portfolio investment
(CZK billions)

Other investment recorded a net outflow of capital of CZK 31.4 billion amid a faster decline in liabilities (CZK 47.5 billion) than in assets vis-à-vis non-residents (CZK 16.1 billion). On the assets side, a decline was recorded mainly for bank deposits’ with non-residents (CZK 40.7 billion). However, it was partly offset by an increase in loans of resident banks to non-residents (CZK 22.0 billion). On the liabilities side, the decline was driven mainly by falling deposits of non-residents with resident banks (CZK 37.8 billion). International reserves declined by CZK 13.6 billion in October owing to financial transactions.