Stronger imports narrow Czech Republic's trade balance surplus

The external trade balance for the Czech Republic (in the national methodology) should post a surplus of CZK14.3bn in May (the lowest figure so far in 2015), down from CZK19.9bn in April. 

Societe Generale expects exports to more than offset April's contraction due to an improved external environment. However, this effect should be overshadowed by a strong surge in imports. The Czech economy has seen continuing expansion driven by domestic demand (both consumption and investment), which is the main driver behind rising imports.