(Repeats story published on Aug 11)
* WHAT: Czech, Slovak, Hungarian Q2 GDP
* WHEN: Aug 14
* Czech GDP growth seen slowing from Q1 to 4.9 pct annual
growth, Slovakia to 7.6 pct, Hungary rising to 1.8 pct
By Jana Mlcochova
PRAGUE (Reuters) - Inflation and euro zone economic woes are
expected to have dented second quarter growth in two of emerging
Europe's biggest economies, with laggard Hungary seen marching
slowly towards recovery, polls showed on Monday.
June production and export data have already pointed to a
slower pace of expansion in the Czech Republic and Slovakia,
with a pullback in orders from their main customer, Germany, and
consumers spending less due to a surge in inflation.
A poll <CZ/ECON17> of 15 analysts forecast the Czech economy
would expand 4.9 percent in the second quarter compared with the
same period a year earlier, a slowdown from 5.3 percent in the
first quarter <CZGDPQ=ECI>.
Like Slovakia and Hungary, the Czechs have had to deal with a
currency that tested record highs against the euro last quarter,
hitting exports already hobbled by lower demand in western
markets.
Nevertheless, analysts said net exports had overtaken
consumer demand -- hit by inflation of 6.7 percent in June -- to
become the main driver of the Czech economy.
"Exports are slowing down but imports are decelerating even
faster as domestic demand weakens," said JP Morgan analyst
Miroslav Plojhar.
"While economic growth remains strong, the outlook is
worsening, with gloomy data from Western Europe, already weak
manufacturing orders in the Czech Republic and strong growth in
unit labour cost in euro."
The Czech central bank (CNB) has taken steps to address the
domestic slowdown by delivering a surprise quarter point cut in
interest rates on Aug. 7 after cutting its 2008 economic growth
forecast to 4.1 percent from 4.7 percent previously.
SLOVAKIA STRONG, HUNGARY RECOVERING
Slovakia, the regional growth champion, was expected to
report gross domestic product (GDP) expansion of 7.6 percent in
the second quarter compared with the previous year. That would
mark a slowdown from 8.7 percent in the first quarter.
Set to adopt the euro in January, Slovakia has had one of
the highest rates of growth in the European Union since it
joined in 2004, largely due to business-friendly reforms that
helped lure billions of euros in car manufacturing investment.
Although growth in car orders from western Europe has eased,
the country will still have robust domestic demand, which should
keep the economy running at a quick pace.
"The slowdown in the euro zone should not affect the Slovak
economy to a large extent, although, together with the strong
crown, it represents downside risk for the growth in the second
half of 2008," said Slovenska Sporitelna senior analyst Maria
Valachyova.
Hungary's growth was forecast to pick up thanks to a rebound
in consumer demand, which suffered after the government
introduced budget measures that slashed the public finance
deficit to 5.5 percent of GDP in 2007, from 9.2 percent in 2006.
A poll <HUGDP1> of 15 analysts showed the Hungarian economy
was expected to grow 1.8 percent in the second quarter compared
with a year earlier, up from 1.7 percent in the first quarter.
(For a TABLE with forecasts on Czech GDP, click on
[] or <CZ/ECON17>)
(Reporting by Michael Winfrey, additional reporting by Martin
Santa in Bratislava and Sandor Peto in Budapest, editing by
Swaha Pattanaik)
