CEE ECONOMY-Hungary posts first monthly trade surplus since mid-2021

April 6 (Reuters) - Hungary's trade balance posted its first surplus since the middle of 2021 in February as readings in other central European economies also improved, data showed on Thursday. Falling prices of oil and gas imports coupled with reduced energy consumption have helped trade balances around the region. Large deficits developed last year in the wake of power market turmoil after Russia invaded Ukraine and Moscow cut gas supplies to Europe. Easing domestic demand also helped Hungary's February trade, which ended in a 513 million euro ($559 million) surplus. "In the coming months, new export capacities could be coupled with moderate domestic consumption which could bring about a further improvement in the external balance, providing an important support for the Hungarian currency in the short term," Erste Group Bank analyst Janos Nagy said. Exports rose by an annual 10.5% in euro terms in February, while imports grew by 3.8% year-on-year, Hungary's statistics office said.
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In the Czech Republic, trade ended in a surplus - for a second straight month - of 14.3 billion crowns ($665.4 million), helped by growth in car exports and lower year-on-year costs for most commodities, the country's statistics office said. "In the case of oil and gas, it was the first positive contribution in a year-on-year comparison in almost two years," UniCredit economist Jiri Pour said, adding trade balance development this year will help boost the economy due to lower imports. Komercni Banka forecasts this year's trade deficit to be cut in half, to 110 billion crowns. Similarly, in Slovakia, export growth stayed strong while import growth slowed, and the trade balance swung to its first monthly surplus since October, at 185 million euros. "Imports of mineral fuels and related material recorded a decline on a yearly basis for the second month in a row, with a value down by one-fourth compared to the previous year," Erste said in a note.

"It is a sign that lower commodity prices have gradually been reflected in the prices for wholesale and retail sales."
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($1 = 21.4910 Czech crowns) (1 euro = 23.4166 Czech crowns) ($1 = 0.9177 euros) <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Czech Republic's Trade Balance Hungary's Trade Balance Hungary's Trade Balance Czech Republic's Trade Balance Slovakia's Trade Balance Slovakia's Trade Balance ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Jason Hovet in Prague and Krisztina Than in Budapest; editing by John Stonestreet)