INSTANT VIEW 2-Slovak trade gap widens in Dec

    Slovakia's foreign trade 
balance showed a deficit of 12.48 billion crowns ($468.3 
million) in December, compared with a revised gap of 9.37 
billion in November, the Statistics Office said on Friday. 
 
KEY POINTS: 
FOREIGN TRADE         DEC 06    NOV 06    DEC 05    JAN-DEC 06 
 (SKK bln) 
 Balance             -12.476    -9.374   -26.254     -92.118 
 (Full table of data...........................[ID:nPRG000232]) 
 
- The market had predicted a trade deficit of 10.0 billion crowns 
in December, according to a Reuters poll of analysts. 
- The Statistics Office did not release a more detailed 
breakdown of December trade data. 
- The November balance was revised from a previously reported 
shortfall of 9.25 billion crowns. 
 
COMENTARY: 
    LUCIA STEKLACOVA, SENIOR ANALYST, ING BANK, BRATISLAVA 
    "The trade statistics showed no surprises. We expect 
accelerating exports from January, and a reduction of the 
deficit by half this year." 
     
    JURAJ VALACHY, ANALYST, TATRA BANKA, BRATISLAVA 
    "The trade balance is expected to improve month by month 
from now. This (December) number should not have an impact on 
the crown." 
 
MARKET REACTION: 
    The crown  firmed slightly after the release of 
both the trade and inflation data, to 34.560 to the euro, from 
34.600 at the open. 
  
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 in 2007 when 
the two car assembly plants are scheduled to boost their 
export-oriented production. 
 
LINKS 
- For further details on December 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]