BRATISLAVA, Aug 13 (Reuters) - The Slovak economy expanded
1.2 percent in the second quarter compared to the previous three
months, more than expected and up from 0.8 percent growth in the
first quarter.
The heavily export-reliant economy grew 4.6 percent growth,
after a 4.8 percent rise in the first quarter.
Analysts had expected growth of 0.5 percent
quarter-on-quarter and a 4.0 percent year-on-year expansion.
The economy contracted by 4.7 percent last year on an annual
basis, but is now seen returning to a full-year growth with a
3.1 percent rise, according to analysts' expectations.
A separate data release showed that consumer prices rose by
0.1 percent on the month in July, putting the annual inflation
rate at 1.1 percent, tad above 1.0 percent seen in June
[]).
Analysts expected inflation in the euro zone member country
would speed up throughout the year, but only gradually, as
demand-led inflationary pressures remain weak with the jobless
rate off but still in sight of five-year high seen in February.
ANALYST COMMENT:
MARIA VALACHYOVA, SENIOR ANALYST, SLOVENSKA SPORITELNA
"Germany's recovery was much stronger than expected in the
second quarter and we believe this stood behind Slovakia's
stronger-than-expected growth."
"As for the full year of 2010, we think that growth will be
stronger, rather around 4 percent than markets' original
expectation of a 3.1 percent rise."
INFLATION:
- In the month-on-month comparison, prices of food and
non-alcoholic beverages rise by 0.3 percent in July, after a 0.2
percent drop in the previous month.
- Transportation prices edge up by 0.1 percent, after a 0.2
percent decline in June.
- Prices of alcoholic beverages and tobacco inch up by 0.1
percent for a second month in a row.
- Housing, water, electricity, gas and other utility prices,
which have the strongest weight in the inflation index, are flat
for the third consecutive month.
BACKGROUND
- The Statistics Office will publish a detailed structure
with final data on September 2.
- Recovery in the euro zone poorest member, highly dependent
on exports, has been driven by upturn in foreign demand in the
second quarter, which boosted industrial output and trade
figures.
- But poor retail sales reading show domestic demand remains
weak, putting brakes on growth.
- Slovakia, a euro zone member since January last year , has
been hit by the global economic downturn as demand for its
exports fades in its main western markets.
- The country's economic activity has been slowing from
record growth rates seen in 2007, when it posted 13.5 percent
GDP growth in the fourth quarter and 10.6 percent for the year.
- The full-year 2008 GDP growth was 6.2 percent.
- The central bank expected the economy to rise by 3.7
percent this year. It is more optimistic than the Finance
Ministry, with its forecast of a 3.2 percent GDP growth and the
European Commission with a 2.7 percent rise.
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=>
(Reporting by Martin Santa)
