INSTANT VIEW 2-Slovak June trade gap bigger than expected

...of 4.277 
billion in May, the Statistics Office said on Friday. 
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KEY POINTS: 
FOREIGN TRADE        JUNE 07       JUNE 07 FCAST 
 (SKK bln) 
 Balance              -4.513          -0.7 
  (Full table of data.......................[ID:nPRG000452]) 
- The market had expected a trade deficit of 0.7 billion crowns 
in June, according to a Reuters survey of analysts earlier this 
month  . 
- The Statistics Office did not release a detailed breakdown of 
June trade data. 
- The May balance was revised to a deficit of 4.277 billion 
crowns from a previously reported gap of 3.539 billion. 
 
ANALYST COMMENTS: 
    LUCIA STEKLACOVA, SENIOR ECONOMIST, ING BANK, BRATISLAVA 
    "The foreign trade balance is a disappointment. We expected 
a double-digit rise in exports. 
    "These figures show that the contribution of foreign trade 
to economic growth in the second quarter will be lower than 
expected. 
    "We still expect GDP growth between 9 and 10 percent, but 
after these figures it is more probable that it will be closer 
to 9 percent." 
 
MARKET REACTION: 
- The crown weakens to a two-week low 33.580 per euro 
 after the release, from 33.550 before the data. It 
closed at 33.495 on Thursday. 
     
BACKGROUND: 
- Slovakia's foreign trade deficit widened in 2006, mainly due 
to rising equipment imports for projects such as car factories 
of PSA Peugeot Citroen  and Kia Motors . 
- But the external balance improved early in 2007 as two car 
assembly plants boost their export-oriented production. 
 
LINKS 
- For further details on June 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 
 
- For LIVE Slovak economic data releases, click on...... 
- Schedule of upcoming indicator releases............ 
- Summary of short-term economic data forecasts...... 
 
- Stories on Slovak currency moves........................[SKK/] 
- Slovak speed money guide .............................. 
- Slovak benchmark state bond prices ................. 
- Slovak forward money market rates .................... 
 
 

[BRATISLAVA/Reuters/Finance.cz]