FX.co ★ Czech Republic Current Account Deficit Narrows in May

In May 2025, the Czech Republic observed a reduction in its current account deficit, which stood at CZK 5.83 billion, a significant improvement from the CZK 17.16 billion deficit recorded in the same month the previous year. This development was slightly above market expectations, which had estimated a shortfall of CZK 4.98 billion. Notably, this constituted the first current account deficit witnessed since September 2024. The improvement was primarily attributed to an increase in the goods account surplus, which rose to CZK 29.68 billion from CZK 26.98 billion in May 2024. However, the services account surplus experienced a decline, decreasing to CZK 7.96 billion from CZK 11.63 billion. Moreover, the primary income deficit contracted to CZK 41.09 billion from CZK 49.76 billion compared to the previous year. Conversely, the secondary account deficit saw a significant expansion, growing to CZK 23.81 billion from CZK 6.00 billion.