UPDATE 1-Slovak c.banker sees limited inflation risk

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By Martin Dokoupil

BRATISLAVA, Sept 5 (Reuters) - Slovakia's robust economic growth rate, one of the fastest in the European Union, is largely export-driven and should not add to inflation risks, central bank (NBS) board member Karol Mrva said on Wednesday.

Slovakia's gross domestic product (GDP) grew by 9.4 percent in the second quarter, according to data published on Tuesday, just under the record 9.6 percent booked in final three months of 2006. In the first quarter, GDP rose a real 9.0 percent.

"So far we think GDP growth is healthy and we do not have any signals that there should be risks of rising inflation," Mrva told Reuters in a brief telephone interview.

Analysts have said rapid household consumption growth of 7.3 percent from 6.5 percent in the previous three months was a slight surprise, but the data were unlikely to prompt a near-term tightening of central bank policy.

Household consumption "rose but net exports rose as well," said Mrva.

"We think growth is sustainable for a sensible period but it is hard to say. We forecast a decline next year as we do not see the launch of car factories every year," he said.

The statistics office said on Tuesday the economy would slow down in the third quarter as unfavourable weather has hit crop yields. The comparative base will also rise due to last year's launch of PSA Peugeot Citroen's car plant.

The NBS expects GDP to rise by 8.9 percent this year, just above the Statistics Office's forecast of 8.8 percent and the full-year record of 8.3 percent in 2006. It sees growth slowing to 7.5 percent next year.

The booming car sector, long dominated by Volkswagen's assembly plant near Bratislava, is a key driver of Slovakia's expansion. GDP was also lifted by the launch of a Kia Motors factory in December 2006.

The NBS, which aims to bring Slovakia into the euro zone in 2009, kept the key two-week repo rate unchanged at 4.25 percent, 25 basis points over the European Central Bank benchmark, last week.

Keywords: SLOVAKIA GDP/CBANK