INSTANT VIEW 2-Slovak Nov trade gap widens to SKK 9.25 bln

    Slovakia's foreign trade 
balance showed a deficit of 9.25 billion crowns in November, 
compared with a revised gap of 5.48 billion crowns in October, 
the Statistics Office said on Thursday. 
 
KEY POINTS: 
FOREIGN TRADE         NOV 06    OCT 06    NOV 05    JAN-DEC 05 
 (SKK bln) 
 Balance              -9.251    -5.478    -4.092     -76.322 
 (Full table of data...........................[ID:nPRG000196]) 
 
- The market had predicted a trade deficit of 2.3 billion crowns 
in November, according to a Reuters poll of analysts. 
- The Statistics Office did not release a more detailed 
breakdown of November trade data. 
- The October balance was revised from a previously reported 
shortfall of 4.98 billion crowns. 
 
ANALYST COMMENTS: 
    MARIA VALACHYOVA, SENIOR ANALYST, SLOVENSKA SPORITELNA 
    "Exports were in line with our predictions, but imports grew 
faster than expected. It is hard to say now what was behind it, 
there may have been more investment-related imports there. 
    "We expect the trade balance to improve in 2007, mainly 
because of exports from car factories, as well as a slowdown in 
imports. 
    "Cheaper oil should also be positively reflected in smaller 
imports." 
     
MARKET REACTION: 
    The crown  was slightly weaker after the data 
release, trading at 34.515 to the euro, compared with 34.490 
earlier in the session. 
     
 BACKGROUND: 
- Slovakia's foreign trade deficit had widened in 2006, 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 the in 2007 
when the two plants are scheduled to boost their export-oriented 
production. 
 
LINKS 
- For further details on November 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]