INSTANT VIEW 3-Slovak Sept trade gap jumps sharply beyond fcasts

    BRATISLAVA, Nov 10 (Reuters) - Slovakia's foreign trade 
balance showed a deficit of 9.46 billion crowns ($334.9 million) 
in September, compared with a revised gap of 2.35 billion crowns 
in August, the Statistics Office said on Friday. 
 
KEY POINTS 
FOREIGN TRADE        SEPT 06    AUG 06    SEPT 05   JAN-DEC 05 
 (SKK bln) 
 Imports             122.975   110.490    95.788    1,070.893 
 Exports             113.510   108.145    93.086      994.571 
 Balance              -9.464    -2.346    -2.702      -76.322 
DYNAMICS OF TRADE  
 (pct y/y change in SKK terms) 
 nominal imports      28.4       35.4      13.6          13.9 
 nominal exports      21.9       33.2      17.6          11.6 
 
- The market had predicted a trade deficit of 2.1 billion crowns 
in September, according to a Reuters poll of analysts. 
- The Statistics Office does not release a more detailed 
breakdown of September trade data. 
- The August balance is revised from a previously reported 
shortfall of 4.36 billion crowns. 
 
COMMENTARY 
    MIROSLAV PLOJHAR, CHIEF ECONOMIST, CITIBANK, PRAGUE 
    "It (the result) is a big surprise. We might see a crown 
correction, which had been looming and this can start it off. 
    "I expect the trade balance to improve by the end of this 
year. The trade (result) may include increasing consumption 
imports. They might be rising alongside the recent retail sales 
data." 
     
    DAVID ROSS, ANALYST, 4CAST 
    "A dissapointing result for the crown, with the trade 
deficit widening further on a 12 month roling basis. 
    "While market participants have their eyes on improvements 
in coming months, theses will need to be delivered to sustain 
crown momentum." 
    
MARKET REACTION: 
- The crown weakened slightly after the data, to 36.190 to the 
euro, from 36.160 per euro before the release. 
     
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 <PEUP.PA> and Kia Motors <000270.KS>. 
- But the external balance is expected to improve later in 2006 
and in 2007 when the two plants are scheduled to start 
exporting. 
 
LINKS 
- For further details on September 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......<ECONCZ> 
- Schedule of upcoming indicator releases............<SK/ECON09> 
- Summary of short-term economic data forecasts......<SK/ECON04> 
 
- Stories on Slovak currency moves........................[SKK/] 
- Slovak speed money guide ..............................<CZK/1> 
- Slovak benchmark state bond prices .................<0#SKBMK=> 
- Slovak forward money market rates ....................<SKKFRA> 
 
 ((Reporting by Martin Santa; Reuters Messaging: 
martin.santa.reuters.com@reuters.net; Email: 
martin.santa@reuters.com; +421-2-5341-8402)) 
 ($1=28.25 Slovak Crown) 
  Keywords: ECONOMY SLOVAKIA TRADE