Czech Republic’s Foreign Trade Surplus Improves

The Czech Republic’s foreign trade ended May with a surplus of CZK 11.8 billion. Compared to May of the previous year, the result improved by CZK 39.6 billion. The improvement in the trade balance was mainly due to a year-on-year decrease in the deficit of trade in oil and natural gas and an increase in the export of motor vehicles.

According to the Czech Statistical Office (CZSO), preliminary data was released on Friday, which showed that exports in May decreased by 3.3% year-on-year to CZK 379.3 billion. Imports decreased significantly, down 12.5% from last year to CZK 367.5 billion.

Export decreased by 0.3% every month after seasonal adjustments, while imports decreased by 0.7% compared to April.

The improvement in foreign trade is a positive sign for the Czech economy, which was hit hard by the pandemic. The country’s GDP decreased by 5.6% in 2020 due to the pandemic, but the economy is expected to grow by 3.5% this year.

The Czech Republic is a small, export-oriented economy with a highly skilled workforce and a solid industrial tradition. Its main trading partners are Germany, Slovakia, Poland, and China.

The Czech Republic’s foreign trade surplus in May results from its efforts to diversify its economy and reduce import dependence. The government invests in research and development, innovation, and education to boost the country’s competitiveness and attract foreign investors.

The Czech Republic is also a member of the European Union, providing access to a large market of over 450 million consumers. The country has been a member of the EU since 2004 and has benefited from the bloc’s economic and political stability.