INSTANT VIEW 3-Slovakia posts surprise trade gap in Feb

...a revised surplus of 4.88 billion crowns 
in Janaury, the Statistics Office said on Wednesday. 
     
KEY POINTS: 
FOREIGN TRADE         FEB 07    JAN 07    FEB 06    JAN-DEC 06 
 (SKK bln) 
 Balance              -2.054    +4.881   -10.409      -93.100 
 (Full table of data.......................[ID:nPRG000304]) 
  
- The market had predicted a trade surplus of 2.0 billion crowns 
in February, according to a Reuters poll of analysts. 
- The Statistics Office did not release a detailed breakdown of 
February trade data. 
- The January balance was revised from a previously reported 
surplus of 3.98 billion crowns. 
  
ANALYST COMMENTS: 
    SILVIA CECHOVICOVA, ANALYST, CSOB BANK, BRATISLAVA 
    "I would not see this data as too negative because we saw an 
improvement by 8 billion crowns year-on-year. 
    "Exports maintain quite solid dynamics, and I think the 
trade figures will improve in future as new capacities in the 
car sector go online. 
    "We expect a foreign trade deficit of 31.5 billion crowns 
for the full year 2007." 
     
    LUCIA STEKLACOVA, SENIOR ANALYST, ING BANK BRATISLAVA 
    "It was worse than expected. Based on yesterday's 
(Tuesday's) industrial output data, car production slowed down 
in February. 
    "We don't expect this (deficit) next month again, and we 
predict better export dynamics in March." 
     
MARKET REACTION: 
    The crown eased slightly to 33.390 per euro  after 
the data release, from 33.350 early in the session. 
     
BACKGROUND: 
- Slovakia's foreign trade deficit widened in 2006, mainly due 
to rising imports of equipment needed for investment projects 
such as car factories being built by PSA Peugeot Citroen 
 and Kia Motors . 
- But the external balance is expected to improve in 2007 when 
the two car assembly plants are scheduled to boost their 
export-oriented production. 
 
LINKS 
- For further details on February foreign trade and other 
past data, Reuters 3000 Xtra users can click on the Slovak 
Statistics Office's website: 
    http://wwww.statistics.sk/webdata/english/index2_a.htm 
 
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