Czech Republic’s foreign trade surplus rises to CZK 20 billion in January

The Czech Republic’s foreign trade recorded a surplus of CZK 20 billion in January, marking a year-on-year increase of CZK 12.9 billion. The improved trade balance was largely driven by higher exports of motor vehicles, according to data released by the Czech Statistical Office (ČSÚ). Total exports grew by 12.2% year-on-year to CZK 396.7 billion, while imports rose by 8.7% to CZK 376.7 billion. On a month-on-month basis, seasonally adjusted exports increased by 1.6%, and imports grew by 3.3%.

The export growth was widespread across multiple commodity groups. Notably, exports of computers, electronics, and optical devices increased by more than CZK 8 billion, with key destinations including Germany, the Netherlands, and Slovakia. The trade surplus in motor vehicles was CZK 6 billion higher than the previous year, while the trade deficit in computers, electronic and optical instruments narrowed by CZK 4.5 billion. The balance for machinery and equipment also improved by CZK 3.5 billion.

However, some sectors experienced declines. The trade surplus in metal products fell by CZK 3.6 billion, while the deficit in basic metals deepened by CZK 1.2 billion. Additionally, the trade surplus in electrical equipment decreased by CZK 1.1 billion. Trade with EU countries saw a slight decline, with the surplus falling by CZK 0.8 billion. On the other hand, the trade deficit with non-EU countries improved, narrowing by CZK 14.9 billion.

Analysts noted that Czech exports performed well in January despite challenging global economic conditions. The overall surplus exceeded market expectations, which had predicted a figure of around CZK 15 billion. While the economic situation in Europe remains uncertain, Czech companies have managed to sustain their performance in foreign trade. Some of the strong export growth can be attributed to a low base of comparison from the previous year.

One significant factor contributing to the January figures was an increase in exports to the U.S., which surged by 78% year-on-year. Analysts suggested that concerns over potential import tariffs in the U.S. may have led Czech exporters to accelerate shipments overseas in anticipation of trade restrictions. The introduction of tariffs on European imports remains a key risk for Czech foreign trade this year.

Car exports remained a primary driver of foreign trade, continuing the trend from previous months. However, analysts cautioned that weak industrial production may begin to weigh more heavily on trade figures in the coming months. Much of the recent export activity has been linked to the fulfillment of previously completed orders rather than fresh industrial output.

Despite challenges, relatively low prices of imported energy raw materials provided a positive boost to foreign trade. Conversely, increased imports of base metals, metal products, and electrical equipment exerted pressure on the trade balance.

Looking ahead, analysts expect the foreign trade surplus to decline in 2025, with projections indicating a reduction of around CZK 100 billion to CZK 120 billion over the year. Nonetheless, Czech foreign trade continues to demonstrate resilience, even in a challenging geopolitical and economic environment. A key factor in this resilience is the gradual diversification of export markets, with Czech businesses expanding beyond their traditional reliance on German trade and increasing exports to countries such as Poland.

Source: CTK