ČR's foreign trade shows CZK 35.5bn surplus in Nov 2012

Prague, Jan 7 (CTK) - The Czech Republic's foreign trade showed a surplus of Kc35.5bn in November 2012, up by Kc17.1bn year-on-year, the Czech Statistical Office (CSU) said Monday.

According to preliminary results, exports grew by 4.2 percent year-on-year, while imports fell by 2.4 percent.

Exports of companies registered in the Czech Republic went up by 1.3 percent. Exports of companies seated outside the Czech Republic grew by 13.7 percent.

Imports of entities registered in the Czech Republic rose by 0.8 percent, while imports of entities seated outside the Czech Republic decreased by 16.4 percent.

According to analysts, the record surplus of foreign trade shows that the Czech economy is still being supported by external demand. However, demand in Germany and Slovakia, the Czech Republic's key trading partners, has weakened.

"Exporters are therefore being saved only by continuing interest in Czech products by Russia and other CIS countries. Taking into account other domestic statistics, the high surplus of foreign trade is not a sign of a strong economy but rather on the contrary," UniCredit Bank chief economist Pavel Sobisek said.

The main reason for the high surplus was mainly a fall of imports. Domestic demand remains weak. "The result may, however, also indicate that companies are reducing their supplies and are getting ready for a worse situation on export markets, particularly in the car industry," analyst Jiri Skop of Komercni banka said.

According to Deputy Industry and Trade Minister Milan Hovorka, the outlook for the forthcoming period does not provide many reasons to be optimistic. "The development in Europe is very uncertain. Advance indicators for the euro zone and Germany signalize a certain improvement but they still stay deeply in the contraction zone. In non-EU countries, a lower economic performance is apparent as well," Hovorka said.

It is nevertheless almost certain that Czech exports for 2012 will exceed the level of Kc3,000bn, Hovorka added.

Surplus rose mainly in the segment of machinery and transport equipment (by Kc13.5bn), in miscellaneous manufactured articles (by Kc5bn) and in crude materials, inedible, except fuels (by Kc0.3bn).

The trade gap deepened in mineral fuels (by Kc0.7bn), food and live animals (by Kc0.5bn) and chemicals (by Kc0.2bn).

Manufactured goods classified chiefly by material posted a decrease of surplus (by Kc0.2bn).

The trade balance with EU Member States reached a surplus of Kc68.9bn, up by Kc6.5bn year-on-year.

Deficit of trade with non-EU countries shrank by Kc10.6bn to Kc33.4bn.

In January - November 2012, exports and imports rose by 7.7 percent and 3.3 percent, respectively. The trade balance surplus amounted to Kc307bn, up by Kc123.1bn on the year. Surplus rose mainly in machinery and transport equipment (by Kc81.5bn) and miscellaneous manufactured articles (by Kc26.9bn). On the contrary, deficit increased in mineral fuels (by Kc12.2bn).

For full 2012 Czech exporters expect the trade balance to show a good result. "At this moment, tt is already almost certain that the full-year surplus will exceed the level of Kc300bn. Regarding the current economic situation, we consider this a great success," Exporters Association chairman Jiri Grund said.