BRATISLAVA, March 3 (Reuters) - Slovakia's heavily
export-reliant economy continued to expand in the fourth quarter
driven by a rise in domestic and also non-domestic demand, but
growth overall slowed, data showed on Thursday.
The euro zone country's economy grew by 0.9 percent on the
quarter, on a seasonally adjusted basis, and by 3.5 percent on
the year in the October-December period, in line with a flash
estimate released in February.
Slovakia returned to growth with a 4.0 percent rise last
year, following a 4.8 percent contraction in 2009.
Household consumption rose by 0.5 percent in the fourth
quarter, its first increase in five quarters, while overall
domestic demand rose 1.5 percent year-on-year, mostly as a
result of higher investment.
Exports were up by 14.3 percent on the year, after a 17.3
percent rise in the previous quarter, while imports jumped by
13.5 percent.
A separate data release showed real average wages in
Slovakia rose 2.2 percent year-on-year last year, up from 1.4
percent in 2009.
*****************************************************************KEY POINTS:
SLOVAK REAL GDP Q4/10 Q3/10 Q4/09 FY/10
(pct change yr/yr) +3.5 +3.8 -3.6 +4.0
(pct change q/q) +0.9 +1.0
(for full table pls see ... [])
*****************************************************************
ANALYSTS COMMENTS:
LUBOMIR KORSNAK, ANALYST, UNICREDIT BANK
"There was no surprise in the structure, exports continued
to rise and the gross domestic product (GDP growth was driven by
foreign demand, and it was joined by rising investments in the
fourth quarter."
MARIA VALACHYOVA, SENIOR ANALYST, SLOVENSKA SPORITELNA
"It is positive that households consumption has returned to
growth, we could see that coming in employment figures."
"It is also positive that the rise of fixed investments has
accelerated, as it carries the potential to boost the economy in
the future."
"We could see a similar pace of growth in the first quarter
of this year, and the year-on-year dynamics could accelerate in
the following quarters."
"The key factor for the Slovak economy outlook remains how
the euro zone's recovery continues."
JURAJ VALACHY, ANALYST, TATRA BANKA
"The structure of the growth looks good, ... driven by
investments and exports. Domestic demand is still weak, but we
expect it to improve this year."
"External trends and a bigger-than-expected impact of the
government's fiscal consolidation measures are key risks for the
growth."
BACKGROUND:
- In the October-December period the GDP was produced in the
amount of 17.020 billion euro, compared with 17.470 billion
euros in the third quarter of the year, based on current prices.
- The euro zone country produced GDP worth 65.9 billion euros,
up from 63.1 billion euro in 2009.
- The central bank expects the economy to grow 3.0 percent this
year. It is slightly less optimistic than the finance ministry,
with its forecast of a 3.4 percent GDP growth.
LINKS:
- For further details on past data, Reuters 3000 Xtra users can
click on the Slovak Statistics Office's website:
http://wwww.statistics.sk/webdata/english/index2_a.htm
- For LIVE Slovak economic data releases, click on......<ECONSK>
- Schedule of upcoming indicator releases............<SK/ECON09>
- Summary of short-term economic data forecasts......<SK/ECON04>
- Slovak benchmark state bond prices .................<0#SKBMK=>
- Slovak forward money market rates ....................<SKKFRA>
(Reporting by Martin Santa; Editing by Patrick Graham)
