INSTANT VIEW 2-Slovak Oct trade gap shrinks to SKK 4.98 bln

    Slovakia's foreign trade 
balance showed a deficit of 4.98 billion crowns ($185.7 million) 
in October, compared with a revised gap of 9.87 billion crowns 
in September, the Statistics Office said on Tuesday. 
KEY POINTS: 
FOREIGN TRADE         OCT 06   SEPT 06    OCT 05    JAN-DEC 05 
 (SKK bln) 
 Balance              -4.979    -9.874    -6.761      -76.322 
 (Full table of data...........................[ID:nPRG000170]) 
    
 
- The market had predicted a trade deficit of 4.1 billion crowns 
in October, according to a Reuters poll of analysts. 
- The Statistics Office did not release a more detailed 
breakdown of October trade data. 
- The September balance is revised from a previously reported 
shortfall of 9.46 billion crowns. 
 
ANALYST COMMENTS: 
    LUCIA STEKLACOVA, SENIOR ANALYST, ING BANK, BRATISLAVA 
    "It is slightly worse than we expected, but we do not see 
negative implications from this number because export growth was 
in double digits area. 
    "The car factories of Kia and PSA have not yet shown full 
production, and we see room for significant improvement (in 
trade balance) from next year." 
 
MARKET REACTION: 
    The crown  was slightly stronger after the data, 
trading at 35.035 per euro as of 0805 GMT, from 35.060 earlier 
in the session. 
 
BACKGROUND: 
- Slovakia's foreign trade deficit has been widening in the past 
year, mainly due to rising imports of equipment needed for 
investment projects such as car factories being build by PSA 
Peugeot Citroen  and Kia Motors . 
- But the external balance is expected to improve by the 
year-end and in 2007 when the two plants are scheduled to boost 
export capacities. 
 
LINKS 
- For further details on October 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]