Foreign direct investment (FDI) in the Czech Republic reached CZK31.5 bn in 1Q 2004, up by CZK4.2 bn compared to the same period in 2003. Of total FDI, investment in equity capital was worth CZK11.1 bn, while reinvested earnings amounted to CZK17.7 bn.
FDI came mainly from non-European countries, in particular Japan and Canada. Major European investors included Germany, the Netherlands, France, and Belgium. Investments by Czech firms went mainly to the US and Slovakia.
In 1Q 2004, the Czech Republic saw its current account deficit double year-on-year to CZK16.7 bn, 6.8 % of GDP. In the last quarter of 2003, the current account gap reached CZK64.3 bn and amounted to CZK157 bn for the full year.
The inflow of capital to the financial account was worth CZK3.6 bn in 1Q 2004. The CNB's international reserves stood at CZK6.9 bn at the end of March.
Source: Interfax
