Czech current account surplus a record in 2020 on weak dividend outflow
- The result, equal to about 3.2% of gross domestic product, follows a deficit of 16.96 billion crowns in 2019.
- The development of the current account is favourable due to growing exports of goods, low imports and a weak outflow of dividends.
PRAGUE: The Czech current account hit a record surplus of 180.5 billion crowns ($8.51 billion) in 2020 amid rising exports and weaker dividend outflows, central bank data showed on Monday.
The result, equal to about 3.2% of gross domestic product, follows a deficit of 16.96 billion crowns in 2019.
"The development of the current account is favourable due to growing exports of goods, low imports and a weak outflow of dividends," Michal Brozka, senior economist at Komercni Banka, said in a note.
The Czech central bank has limited banks from paying dividends amid the coronavirus pandemic and has indicated it was unlikely there would be large payments this year.
ING economist Jakub Seidler said the current account in 2021 could stay in a surplus above 2% of GDP with limited dividends.
The data on Monday also showed in December alone the balance was a deficit of 3.9 billion crowns despite expectations for a surplus.
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