PRAGUE--The Czech Republic's foreign trade surplus in April
expanded more than forecast, compared with March, and was up also
from a year earlier, driven by growing exports from the car and
automotive parts sectors, data released Thursday showed,
The April surplus was 33.03 billion koruna ($1.68 billion), up
from a revised CZK31.83 billion surplus in March and CZK20.01
billion in April 2012, the country's statistics bureau CSU
said.
Analysts had expected an April surplus of CZK20.00 billion. The
CSU had earlier reported a surplus in March of CZK32.35B.
"Czech foreign trade data delivered good news in terms of strong
growth of exports, as well as in terms of recovery on the side of
imports," said Radomir Jac, chief economist at Generali PPF Asset
Management in Prague.
"This indicates that economic activity is starting to
recover."
The Czech economy is centered on car exports and local car
makers, including Skoda Auto AS, the local unit of Volkswagen AG
(VLKAY). All local car makers have been battling with weak demand
for cars in Western Europe. However, Skoda officials earlier
predicted their sales would pick up as the company started to
launch new and revamped models from March.
Thursday's trade surplus data may bode well for the local
economy as it emerges from a long recession stretching back to late
2011 that was triggered by an economic contraction in the euro zone
in the wake of the debt crisis.
Local exports rose 6.4% in April, rebounding from a series of
monthly declines since the start of the year. Imports in April were
up 1.3%, also recovering from several months of decline.
The Czech central bank still expects low inflationary pressures
and has pledged to leave its benchmark interest rate at its current
record low of 0.05% for as long as necessary.
Write to Leos Rousek at leos.rousek@dowjones.com