INSTANT VIEW 3-Slovak Q2 GDP +9.2 pct, below forecast

...estimate of 
gross domestic product (GDP) data. 
     
  KEY POINTS  GDP 
                      Q2/07 (estimate)    Q1/07     Q2/07 fcast 
  (pct change y/y)        +9.2            +9.0        +9.4 
     
    - The Statistics Office does not release detailed data in 
its flash GDP estimate.  
    - Second quarter GDP in nominal prices totalled 449.3 
billion crowns ($18.36 billion). 
     
    ANALYST COMMENTS: 
    MARIA VALACHYOVA, SENIOR ANALYST, SLOVENSKA SPORITELNA 
    "The second quarter GDP data met growth and structure 
expectations. The economy continues to show strong growth. The 
structure was balanced, and growth was driven both by domestic 
and foreign demand." 
     
    LUCIA STEKLACOVA, SENIOR ANALYST, ING BANK, BRATISLAVA 
    "In light of foreign trade data in the past two months the 
GDP number is in line with expectations. The structure has 
probably shifted towards stronger domestic demand, but it is 
still very balanced growth" 
 
    SILVIA CECHOVICOVA, ANALYST, CSOB BANK, BRATISLAVA 
     "The figure is lower than what we expected and what the 
market forecast, but we think it is still a high number and that 
the economy is growing at a strong pace. 
    "We expect domestic and foreign demand to have been the key 
drivers of growth. The difference between expectations and the 
actual figure was likely due to the impact of net exports." 
     
    STATISTICS OFFICE COMMENT: 
    "Gross domestic product growth acceleration was related to 
rising added value in industrial production, mainly in 
production of machines, electric equipment and transportation 
means. On the consumption side, gross domestic product growth 
was influenced mainly by continued foreign demand, along side 
persistent growth in domestic demand." 
     
    CROWN REACTION: 
    The Slovak crown slightly weakens after GDP data, trading at 
33.485 to the euro  as of 0715 GMT, from 33.455 earlier 
in the session. Traders said the move was related to bearish 
sentiment on global emerging markets rather than domestic data. 
     
    BACKGROUND 
    - The Slovak economy has been showing one of the highest 
growth rates in the European Union in the past few years.  
    - GDP growth has been helped by rising car export volumes 
and solid domestic demand as household consumption rises after 
years of belt-tightening reforms.  
    - Investments have also increased in the past year, mainly 
large project such as car factories of French PSA Peugeot 
 and South Korean Kia Motors . 
     
    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...... 
- Schedule of upcoming indicator releases............ 
- Summary of short-term economic data forecasts...... 
- Stories on Slovak currency moves........................[SKK/] 
- Slovak speed money guide .............................. 
 

[BRATISLAVA/Reuters/Finance.cz]