Monday, August 04, 2008

Exports From The Czech Republic Slow Further In June

Czech exports slowed further on a year on year basis in June. They were up a touch on May, but down on April and February, and were only very slightly up y-o-y. The Czech economy is slowing visibly now, but could we also deduce we are going to see a very slight increase in German exports in June (over May) when the data are released later this week? Are movements in industrial output and exports in the CR now an early indicator for the German economy?

Exports rose an annual 1.7 percent, to 215.8 billion koruna and imports totaled 201.9 billion koruna, a 1.1 percent decline in the year.

The Czech Republic's trade surplus increased in June as weaking internal demand kept a lid on imports. Exports exceeded imports by 13.9 billion koruna ($905 million), compared with a surplus of 9.2 billion koruna in May and 8.1 billion koruna a year ago, according to the Prague-based statistics office earlier today

The koruna has been the world's best-performing currency so far this this year - advancing 17 percent against the euro and was 33 percent stronger against the dollar. The currency's sustained appreciation lowers the chances that the CR will see a rapid rebound in exports as the high value of the currency is now beginning to seriously weigh on exporters.


vfr said...
This comment has been removed by the author.
vfr said...

on top of this tourism is down 30%. Which in itself would normally represent a small percentage . I seem to remember reading though in 2006 it represented 25% of GDP.