BRATISLAVA, Dec 2 (Reuters) - Slovakia's heavily
export-reliant economy expanded by 3.8 percent year on year in
the third quarter, slightly higher than a flash estimate
released in November, data showed on Thursday.
The euro zone member state grew by 1.0 percent
quarter-on-quarter, fuelled mainly by a gradual global recovery,
while domestic demand stayed weak due to a stressed labour
market and high unemployment rate.
The Statistics Office said non-domestic demand was one of
the key drivers of the economy in the July-September period,
with exports rising by 14.8 percent on the year. Imports rose by
16.0 percent.
The household consumption declined by 0.3 percent, following
a 1.4 percent drop in the second quarter. The economy shrank by
4.8 percent in 2009, erasing much of the 5.8 percent growth from
2008, and a sharp contrast to the record 10.5 percent expansion
in 2007.
A separate data release showed real average wages in
Slovakia rose by 2.6 percent year-on-year in the third quarter,
up from 2.4 percent in the second three months of the year.
*****************************************************************KEY POINTS:
SLOVAK REAL GDP Q3/10 Q2/10 Q3/09 FY/09
(pct change yr/yr) +3.8 +4.2 -5.0 -4.8
(pct change q/q) +1.0 n/a
(for full table pls see ... [])
ANLAYSTS COMMENTS:
MARIA VALACHYOVA, SENIOR ANALYST, SLOVENSKA SPORITELNA
"The structure in the third quarter was in line with
expectations. The biggest drivers were investments, fixed
capital and inventories."
"Domestic demand remains muted due to a relatively high
unemployment rate."
EDURAD HAGARA, SENIOR ANALYST, ING BANK
"The growth continues to be driven by foreign demand. We saw
a slight improvement in investments."
"Businesses, however, are, in general, not using their
entire production capacities and I do not expect them to boost
their investment activities markedly."
"Domestic demand remains weak due to high unemployment.
Slovaks should open their purses only cautiously, given planned
lay-offs in the public sector this and next year."
"As for the next year, we see slower growth influenced by
the performance of Germany's economy and the government's fiscal
consolidation plan, which is not expected to be offset by the
domestic demand."
BACKGROUND:
- In the July-September period total GDP was 17.470 billion
euros, compared with 16.267 billion euros in the second quarter
of the year, based on current prices.
- The central bank expects the economy to grow 4.3 percent this
year. It is slightly more optimistic than the Finance Ministry,
which forecasts 4.0 percent GDP growth.
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>
- Slovak benchmark state bond prices .................<0#SKBMK=>
- Slovak forward money market rates ....................<SKKFRA>
(Reporting by Martin Santa and Petra Kovacova; Editing by
Patrick Graham)
