Balance of payments – commentary

April 2025

The current account surplus amounted to CZK 14.4 billion in April. The goods and services balance ended in a surplus of CZK 42.0 billion. Direct investment dividends totalling CZK 9.1 billion were recorded on the debit side of the primary income balance. Income and capital transfers included a surplus on transactions of CZK 1.0 billion vis-à-vis EU institutions.

Current account
(CZK billions)

The net capital inflow on the financial account (net borrowing) amounted to CZK 5.3 billion in April amid an increase in both assets (CZK 8.4 billion) and liabilities vis-à-vis non-residents (CZK 13.8 billion). Foreign direct investment recorded a net capital outflow of CZK 2.5 billion, driven primarily by debt instruments (CZK 14.9 billion), whereas a net inflow was recorded for non-debt instruments (CZK 12.4 billion). Portfolio investment recorded a net capital inflow of CZK 134.2 billion. On the liabilities side, it was linked mainly to an increase in non-residents’ holdings of debt securities issued by resident banks (CZK 157.1 billion), whereas non-residents’ holdings of general government securities declined (CZK 9.1 billion). On the portfolio investment asset side, shares and units held by other resident sectors picked up in particular (CZK 11.0 billion).

Direct and portfolio investment
(CZK billions)

Other investment recorded a net capital outflow of CZK 132.9 billion. A decrease in liabilities under other investment (CZK 146.2 billion) was accompanied by a decline in residents’ assets vis-à-vis non-residents (CZK 13.3 billion). On the liabilities side, a net capital outflow was due predominantly to developments in the banking sector, especially a decrease in non-residents’ deposits (CZK 126.1 billion). On the asset side, deposits with non-residents fell by CZK 26.6 billion. International reserves declined by CZK 6.5 billion in April owing to financial transactions.