The Czech Republic logged a current account deficit of 38.31 billion crowns in May, according to data published by the central bank on Tuesday. The outturn was notably larger than the 25.00 billion crown shortfall forecast by analysts surveyed in a Reuters poll, and represents a change from April's 1.18 billion crown surplus.
The May deficit was narrower than the 64.23 billion crown deficit recorded in the same month a year earlier, however. The central bank's breakdown shows mixed developments across the external accounts.
Trade and services
The goods and services balance registered a surplus of 35.91 billion crowns in May, an increase from April's 28.01 billion crown surplus. That figure, however, remains below the 50.74 billion crowns recorded in May 2025.
Financial account and investment flows
The financial account moved into a deficit of 11.98 billion crowns for May, a reversal from a 24.66 billion crown surplus in April and an improvement relative to a 48.29 billion crown deficit in May 2025. Within the financial flows, direct investment amounted to 7.75 billion crowns in May, down from 24.95 billion crowns in April.
Portfolio investment contributed 0.95 billion crowns during the month. Meanwhile, reserve assets declined by 21.86 billion crowns in May.
These figures together produced the reported current account shortfall for the month. The data reflect month-to-month swings across both the external trade and financial sides of the balance of payments, with reserve movements and direct investment flows notable among the components.
Summary of key numbers
- Current account: -38.31 billion crowns in May (April: +1.18 billion crowns; May year-earlier: -64.23 billion crowns)
- Goods and services balance: +35.91 billion crowns in May (April: +28.01 billion crowns; May 2025: +50.74 billion crowns)
- Financial account: -11.98 billion crowns in May (April: +24.66 billion crowns; May 2025: -48.29 billion crowns)
- Direct investment: 7.75 billion crowns (April: 24.95 billion crowns)
- Portfolio investment: 0.95 billion crowns
- Reserve assets: -21.86 billion crowns
The central bank release provides a snapshot of external flows for May, showing a larger-than-expected current account deficit driven by movements in the financial account and a decline in reserve assets, despite a positive goods and services balance.