UPDATE 1-Slovakia revises 2006 GDP growth upwards

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The Slovak Statistics Office said on Wednesday it had revised full-year 2006 gross domestic product growth to 8.8 percent, from a previously reported 8.3 percent rise.

The Statistics Office also revised 2005 GDP growth upwards to 6.6 percent from the originally reported 6.0 percent.

The Slovak economy achieved its fastest growth ever in 2006, and one of the highest increases in the European Union, thanks to foreign investment and rising domestic demand after years of belt-tightening reforms.

The Statistics Office said the revision, which also covered years 1995-2004, was due to methodology changes needed to comply with EU regulations and recommendations by Eurostat, the EU's statistical service.

The office said the revision focused on changing accrual recording of taxes and social contributions to cash payment adjusted method, and modified the way of recording insurance paid by the government.

The revision was also due to improved data sources, changes in reclassification of some transactions and adjustments related to foreign trade, the office said.

Analysts said the revised data showed smaller contribution of household consumption and stronger impact of investments.

"There was a change in structure, which meant weaker signs of overheating in the economy," said Juraj Valachy, a Tatra Banka analyst in Bratislava.

[BRATISLAVA/Reuters/Finance.cz]