The Czech Republic posted a surprising current-account surplus in November as import growth slowed and foreign investors doing business in the Czech Republic sent less profit home. This was the first surplus since March, and reached 1.2 billion koruna ($774 million), compared with a 13.7 billion-koruna deficit in October and a 10.9 billion-koruna gap a year ago, according to data from the central bank earlier today.
The Czech current account typically worsens in the middle of the year as foreign investors collect dividends and profit shares from local companies. Later in the year, the improving trade balance outweighs the effect of the dividend outflow. However it seems probable that higher investment income will continue to be a burden to the current account, which will almost certainly be in the red for most of 2008.
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