INSTANT VIEW 3-Slovak Q3 GDP +9.8 pct y/y, matches estimate

    BRATISLAVA, Dec 7 (Reuters) - The Slovak economy grew by a 
real 9.8 percent, year-on-year, in the third quarter, the Slovak 
Statistics Office said on Thursday. 
  
KEY POINTS 
 SLOVAK REAL GDP          Q3/06     Q2/06       Q3/05      FY/05 
 (pct change yr/yr)       +9.8      +6.7        +6.3       +6.0 
 (Full GDP table...................[nPRG000163])     
 - The third-quarter GDP figure is exactly the same as what the 
bureau reported in its flash estimate last month. 
 -  The Statistics Office adds it sees GDP growth of 7.7 percent 
for the whole of 2006, up from its previous estimate of 6.5 
percent growth. It says first quarter 2007 GDP growth is 
expected at 7.2 percent. Headline CPI is seen at 4.3 percent at 
the end of 2006, up from a previous forecast of 4.0 percent. 
     
ANALYST COMMENTS 
    MARIA VALACHYOVA, SENIOR ANALYST, SLOVENSKA SPORITELNA 
    "The key drivers were investments, shown in inventories, and 
domestic demand. Inventories will transform into exports, and 
growth should remain strong in the future. 
    "A slight acceleration in household consumption may mean the 
central bank wil maintain a cautious monetary policy approach. 
We still maintain our prediction of a 25 basis point rate 
increase in the near term, depending on the crown exchange rate 
moves." 
     
    LUCIA STEKLACOVA, SENIOR ANALYST, ING BANK 
    "Household consumption was slightly faster than expected, 
but, on the other hand, overall consumption was slower than in 
previous quarters. 
    "The growth structure suggests the increasing potential of 
the economy, rather than its overheating. We are inclined to 
expect that there would not be an interest rate increase this 
month, but that also depends also on the exchange rate." 
 
MARKET REACTION: 
- The crown slightly firmed after the data to 35.445 against the 
euro, matching its all-time high, from 35.465 early in the 
session. 
 
BACKGROUND 
- The Slovak economy has been showing the highest growth rates 
among the four largest new EU members from central Europe over 
the past few years.  
- GDP growth has been helped by reviving domestic demand as 
households consumption rises after years of belt-tightening 
reforms. 
- Investments have also increased in the past year, mainly 
thanks to large project such as car factories of French PSA 
Peugeot <PEUP.PA> and South Korean Kia Motors <000270.KS>. 
     
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......<ECONSK> 
- 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, martin.santa@reuters.com; 
Reuters Messaging: martin.santa.reuters.com@reuters.net; +421 2 
5341 8402; Editing by Alan Crosby)) 
  Keywords: SLOVAKIA ECONOMY/GDP