Ladislav Obdržálek, Vladimíra Hlaváčková, Radek Habarta
THE DEVELOPMENT OF FOREIGN TRADE OF THE CZECH REPUBLIC
If we consider the development of balance of payments since 1993, we must conclude that until 2004 there was trade deficit, which means that the Czech Republic imported more goods and services than it exported. Since 2005 the trade balance has been active. The trade deficit at the beginning of transformation in 1993 was a reflection of structural changes, disintegration of the CMEA, removing the monopoly of foreign trade and economic slowdown. When the new independent Czech Republic was established a part of the trade, which used to be realized inside the state, began to be listed in the trade balance. The growth of international trade was positively influenced by the trade with the Slovak Republic, the exports increased after separation of the Federation, even though the trade with this country has gradually declined. The following years were affected by start-up of the economic growth. Trade deficits in coming years clearly showed a rising tendency. The largest decline occurred in 1996 when its balance amounted to -153 billion CZK. If we compare the trade balance with GDP growth, we can see a certain relationship with deficits and recovery of GDP.
„JAK ÚSPĚŠNĚ PODNIKAT V PŘÍHRANIČNÍCH REGIONECH JIHOVÝCHODNÍ MORAVY“ VI. MEZINÁRODNÍ KONFERENCE 2011, EPI Kunovice, Česká republika, 20. květen, 2011
168 Graph 1: Foreign Trade of the Czech Republic
Source: [2]
As it is evident from the graph, the largest volume of exports and imports of goods and services was reached in 2007 and 2008. Paradoxically, however, the real growth of GDP in 2008 reached 2.5% which was influenced by the beginning of unfavourable economic situation. The highest GDP growth of 6.8% was achieved by the Czech Republic in 2006 [3]
Graph 2: Trade balance (rounded to whole CZK bn) Source: [2]
Looking at the graph we can see that in 2009 the Czech Republic had the highest trade surplus since 2005, when foreign trade brought a trade surplus for the first time since the Czech Republic was established and then it was characteristic for all following years. It happened despite of the poor economic situation in the world, including our state. The balance of the foreign trade ended with a surplus of CZK 150 billion in this year. Compared with 2005, foreign trade surplus in 2009 was almost 4 times higher and compared to 2008 it more than doubled. The annual increase of the value of a positive trade balance was supported by the favourable terms in exchange rates. Last year, the surplus reached the second highest level since 2005, more than 120 billion CZK.
„JAK ÚSPĚŠNĚ PODNIKAT V PŘÍHRANIČNÍCH REGIONECH JIHOVÝCHODNÍ MORAVY“ VI. MEZINÁRODNÍ KONFERENCE 2011, EPI Kunovice, Česká republika, 20. květen, 2011
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If we consider the territorial structure of our trade balance, we find that in recent years, the ranking of states with which the Czech Republic traded most, is almost identical. The highest share of exports of goods has been directed to Germany for several years, followed by Slovakia, the United Kingdom, France and Austria. On the contrary, a passive trade balance of the Czech Republic is with China, followed by Russia, Japan, Korea and Thailand.
Trade balance with selected countries Countries of the
EU 2009 2010 change Countries outside the EU
2009 2010 change
in billions of CZK in billions of CZK
Germany 165,8 192 26,2 China -184,1 -268,3 - 84,2
Slovakia 78,3 97,1 18,8 Russia - 53,0 - 62,4 - 9,4
United Kingdom 62,9 74,0 11,1 Japan - 54,4 - 48,3 6,1
France 46,0 56,4 10,4 Korea - 21,5 - 33,3 - 11,8 Austria 27,5 37,4 9,9 Thailand - 20,6 - 28,2 - 7,6 Sweden 14,7 18,9 4,2 Thai-wan - 16,7 - 22,1 - 5,4 Belgium 14,1 18,7 4,6 Azerbaijan - 11,2 - 20,9 - 9,7 Netherlands 16,2 18,7 2,5 Sigapore - 11,9 - 18,1 - 6,2 Italy 8,2 18,5 10,3 Malaisia - 13,1 - 16,2 - 3,1 Spain 12,9 17,5 4,6 US - 7,6 - 9,2 - 1,6 Romania 13,9 15,4 1,5 Norwai - 3,0 - 6,5 - 3,5 Bulgaria 7,1 6,5 - 0,6 Indonesia - 4,0 - 5,0 - 1,0 Hungary 9,2 6,1 - 3,1 Kazakhstan - 3,0 - 4,8 - 1,8 Finland 3,9 5,9 2,0 Vietnam - 3,9 - 4,0 - 0,1 Denmark 1,8 5,3 3,5 Ukraine 3,2 - 2,6 - 5,8 Lithuania 3,1 4,2 1,1 Philippine - 1,5 - 1,8 - 0,3 Greece 5,1 3,6 - 1,5 Bangladesh - 1,8 - 1,7 0,1 Slovenia 2,7 3,2 0,5 Switzerland 10,6 16,3 5,7 Latvia 2,1 2,8 0,7 UAE 9,5 9,4 - 0,1 Portugal 1,8 1,9 0,1 Izrael 2,7 6,9 4,2 Estonia 1,5 1,9 0,4 Croatia 6,4 6,3 - 0,1
Poland - 3,6 1,4 5,0 Hong Kong 4,4 4,4 0,0
Cyprus 0,6 1,4 0,8 Saudi Arabia 4,0 4,3 0,3
Malta 0,1 0,2 0,1 Belarus 2,4 4,2 1,8
Luxembourg - 0,6 - 1,1 - 0,5 India 2,3 4,1 1,8
Ireland - 11,1 - 14,4 - 3,3 Egypt 3,2 4,1 0,9
Total 484,2 593,5 109,3 Total -362,6 -493,4 -130,8
Table 1: Trade balance with selected countries in 2009 and 2010 Source: [4]
On closer inspection of the commodity structure we can see that automobiles are the largest part of our exports, followed by machinery, metal products, semi-finished products and materials, industrial and consumption goods and others.
SITC group with the greatest influence on the trade balance in 2010
positive influence negative influence
SITC groups bn CZK SITC groups bn
CZK 78 – road vehicles 250,8 33 – petroleum, petroleum products and
related materials
- 96,4 74 – machinery and equipment used in
industry 54,7 34 – fuel gas - 62,6
69 – metal products 32,1 54 – medicinal and pharmaceutical products - 41,3 89 – different products n. o. s. 28,3 68 – non-ferrous metals - 39,4 62 – rubber products 23,1 77 – electrical machinery, apparatus and
appliances - 27,3
„JAK ÚSPĚŠNĚ PODNIKAT V PŘÍHRANIČNÍCH REGIONECH JIHOVÝCHODNÍ MORAVY“ VI. MEZINÁRODNÍ KONFERENCE 2011, EPI Kunovice, Česká republika, 20. květen, 2011
170 mattresses
66 – non-metallic minerals products 18,7 05 – vegetables and fruits - 21,5 32 – coal, coke and briquettes 16,6 57 – plastics in primary forms - 16,9 72 – machinery specialized for particular
industries
15,7 01 – meat and meat products - 12,6
76 – telecommunications equipment 14,8 58 – plastics in non-primary forms - 11,8 24 – cork and wood 10,1 84 – clothing products and accessories - 11,4 81 – prefabricated buildings, sanitary
ware 9,1 59 – Chemical materials and products n. o. s. - 11,0
28 – metalliferous ores and metal scrap 8,5 53 – dyes, pigments and tannins - 9,5 79 – other transport equipment 8,0 87 – professional, scientific and controlling
devices - 8,0
63 – cork and wood (except furniture) 7,7 64 – paper, paperboard and articles thereof - 6,8 35 – electrical energy 6,8 23 – rubber (including synthetic) - 6,8 73 – metalworking machinery 5,6 07 – Coffee, tea, cocoa, spices - 4,8 04 – cereals and cereal products 5,3 52 – inorganic chemicals - 4,2
75 – computer Technology 4,5 85 – shoes - 3,7
25 - pulp and waste paper 4,5 29 – material from animal and vegetable
origin - 3,5
Total 545,7 Total - 425,0
Table 2: Commodity structure of foreign trade in 2010 Source: [4]
The country's trade balance can be affected by many factors. In 2010, our balance of trade was affected, either positively or negatively, mainly by the following factors:
Growth of industrial production especially in manufacturing industries Unfavourable terms of exchange rates
Global economic recovery
Persistent weak domestic (especially consumer) demand
CONCLUSION
As mentioned earlier, the importance of exports and imports of goods and services in the economy of the state is quite evident. For some countries the export of their products or services might be the main source of income, without which they could hardly exist. On the other hand, imports of some commodities may be essential for many states. The Czech Republic itself can be included there, because we are dependent on imports of commodities such as oil, gas, etc. Of course, we will always try to manage a surplus balance of our business so that our firms oriented on exports can prosper.
LITERATURE:
[1] Platební bilance [online]. 2010 [cit. 2011-02-03]. Dostupné z WWW:
http://www.referaty10.com/referat/Ekonomie/2/tema-2-9-Ekonomie.php
[2] Platební bilance [online]. 2011 [cit. 2011-02-05]. Dostupné z WWW:
http://www.euroekonom.cz/ekonomie-clanky.php?type=lekce18
[3] Vývoj platební bilance [online]. 2011 [cit. 2011-02-06]. Dostupné z WWW:
http://www.cnb.cz/miranda2/export/sites/www.cnb.cz/cs/statistika/platebni_bilance_stat/publikace_p b/zpravy_vyvoj_pb/PB_2006_CZ.pdf
[4] Vývoj platební bilance [online]. 2006 – 2011 [cit. 2011-02-06]. Dostupné z WWW: http://dumfinanci.cz/tiskove-zpravy/obchodni-bilance-skoncila-v-listopadu-2007-prebytkem-11-3- mld-kc
„JAK ÚSPĚŠNĚ PODNIKAT V PŘÍHRANIČNÍCH REGIONECH JIHOVÝCHODNÍ MORAVY“ VI. MEZINÁRODNÍ KONFERENCE 2011, EPI Kunovice, Česká republika, 20. květen, 2011
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ADDRESSE:
Ing. Ladislav Obdržálek
Evropský polytechnický institut, s.r.o. Osvobození 699
686 04 Kunovice
tel.: 572 549 018, fax: 572 548 788 e-mail: [email protected] Ing. Vladimíra Hlaváčková
Evropský polytechnický institut, s.r.o. Osvobození 699
686 04 Kunovice
tel.: 572 549 018, fax: 572 548 788 e-mail: [email protected] Ing. Radek Habarta
Evropský polytechnický institut, s.r.o. Osvobození 699
686 04 Kunovice
tel.: 572 549 018, fax: 572 548 788 e-mail: [email protected]
„JAK ÚSPĚŠNĚ PODNIKAT V PŘÍHRANIČNÍCH REGIONECH JIHOVÝCHODNÍ MORAVY“ VI. MEZINÁRODNÍ KONFERENCE 2011, EPI Kunovice, Česká republika, 20. květen, 2011
„JAK ÚSPĚŠNĚ PODNIKAT V PŘÍHRANIČNÍCH REGIONECH JIHOVÝCHODNÍ MORAVY“ VI. MEZINÁRODNÍ KONFERENCE 2011, EPI Kunovice, Česká republika, 20. květen, 2011
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