Economic news released by SITA on Friday, January 12
Headline Inflation in Slovakia was 4.5 Percent in 2006
Consumer prices in Slovakia remained unchanged in December. In November they reported growth of 0.6 percent over the previous month. Year-on-year headline was 4.2 percent in December, which is 0.1 percentage points less from November. On average for the whole of last year, consumer prices grew by 4.5 percent, Statistics Office of the Slovak Republic reported on Friday.
Slovakia's Retail Sales Rose 7.4 Percent y/y in November
Slovakia's retail sales in fixed prices grew 7.4 percent to SKK 38 billion in November 2006 compared with November 2005. The Statistics Office reported that the growth chiefly resulted from a 13.5-percent increase in retail sale outside outlets, an increase of 10.6 percent in retail sale in specialized and non-specialized outlets selling food products and the growth of 5.6 percent in other retail sales and non-specialized outlets where food products sale does not prevail.
November Employment Growth Was Highest in Wholesale Businesses
In November 2006, employment again grew most in the wholesale sector, where y/y increase of 11 percent was reported. According to the Slovak Statistics Office report the number of employees in hotels and restaurants went up 9.2 percent, in the building industry 7.6 percent and in retail sector 7 percent. The increase accounted for 4.1 percent in the motor vehicle sale and maintenance sector and 2.6 percent in the sector of real estate, rent and other public services. The number of employees in transport sector increased by 1.3 percent.
Sales of Slovakia's Industry Grew in November
Sales in industry in Slovakia in November grew 14.2 percent year-on-year in fixed prices to SKK 175.7 billion. In industrial manufacturing sales increased by 14.5 percent, where the largest growth was in production of transport means showing sales growth of 60.6 percent, followed by production of chemicals, chemical products and chemical fibers (up 58.5 percent). Sales for electricity, natural gas, and water production and distribution rose 13.3 percent. Sales in the mining sector fell 9.9 percent. In November, eleven-month sales in industry were 14.4 percent higher than a year ago. Of this, industrial manufacturing sales rose 15.9 percent y/y and sales for electricity, natural gas and water production and distribution grew by 4 percent y/y.
GTS Nextra Projects Total Sales at SKK 800 Million this Year
One of Slovakia's alternative telecommunications operators, GTS Nextra, a.s., plans to reach in the year 2007 total sales of SKK 800 million. Compared with 2006 sales estimated at over SKK 739 million this would mean an improvement by 8.3 percent. Company's marketing manager Lucia Markova informed SITA about company's plans. GTS Nextra, a.s., which clusters the companies GTS Slovakia, s.r.o.; Aliatel Slovensko, s.r.o.; Quadia DCT, a.s.; Nextra, s.r.o.; and GTS Nextra, a.s., formerly Telenor Networks, a.s., plans to have 137 employees this year.
Slovak Importer of Porsche, Volkswagen and Audi Cars Flourishes
Porsche Slovakia, s.r.o., Bratislava, an importer of Porsche, Volkswagen and Audi cars, reported sales of goods exceeding SKK 5.615 billion for the fiscal year from April 1, 2005 to March 31, 2006. In a year-on-year comparison, this means an increase by 8.6 percent. Cost of sales was SKK 4.972 billion, up 7.8 percent y/y.
Penta Wants to Run Virtual Mobile Company in V4 Countries
The Slovak-Czech investment group Penta is interested in providing the services of a mobile, virtual operator in countries of the Visegrad Group (V4). "Via the company Mobile Entertainment Company, a.s., we will address the same target group with a single trademark and logo as well as offer in all countries of V4 (Slovakia, Hungary, Poland, and the Czech Republic)," the spokesperson of Penta Investments, Martin Danko, told SITA.
SkyEurope Reports EUR 57.3 Mln. loss for Fiscal Year 2006
Slovak low-cost airline SkyEurope Airlines has confirmed according to audited results for fiscal 2006 a loss before EBIT of EUR 55.5 million. Thus, the airlines deepened the loss by EUR 21.9 million. The net loss for the monitored period was EUR 57.3 million, which means a worsening of EUR 28.7 million compared with the previous fiscal year. Revenues rose 40.7 percent y/y to EUR 158.6 million.
Nominal Wages Up in Slovakia in All Branches in November 2006
The average nominal monthly wages in November were higher y/y in all selected branches of the Slovak economy. Nominal wages grew the most in the telecommunications sector, where they rose 15.6 percent. Nominal wages rose 14.3 percent in the retail sector, 12.4 percent in the car sales and maintenance sector, 11 percent in the sector of real estate, rental, trade activities, and other services, 8.4 percent in the transport sector, 5 percent in hotels and restaurants, 4.8 percent in industry, 2.9 percent in the construction industry and 1.6 percent in wholesale business. The postal service sector posted the lowest growth of 0.4 percent in November. The Slovak Statistics Office reported this wage data on Friday.
British Ambassador Judith Macgregor Meets with SARIO Director
On Friday, the British ambassador to Slovakia met with the head of the Slovak Investment and Trade
Development Agency (SARIO), Peter Hajas. She said that British investors are interested in investing in Slovakia. She explained that for them the most important criteria for choosing the investment location is accessibility of the qualified labor force, wage costs, and the geographical position of the given regions. One of the key factors, however, is also the possibility to get state incentives, reported SARIO spokeswoman Jana Murinova.
Slovakia's FOREX Reserves Down USD 588.1 Mln. This Week
Slovakia's foreign exchange (FOREX) reserves decreased by USD 588.1 million over the past week to USD 16.1763 billion as of January 10. The drop was largely caused by declining reserve assets of Slovakia's commercial banks, going down USD 435.2 million in a week to USD 2.2336 billion. Reserves of the National Bank of Slovakia (NBS) shrank USD 152.9 million to USD 13.9427 billion, the NBS press department informed SITA on Friday.
Money Market Keeps in High Liquidity Surplus
The Slovak money market closed the working week in a high liquidity surplus since the National Bank of Slovakia (NBS) decided to cut a part of demand in the last repo tender. It wants to decrease the attractiveness of the Slovak crown by pressure on the interest rate. OTP Banka dealer Juraj Mitosinka told SITA that commercial banks deposited SKK 25.266 billion in their reserve accounts in the NBS on Friday, meeting the January minimum reserve requirement on a cumulative basis at 142.37 percent as of Sunday. An additional SKK 43.826 billion ended up in the central bank in the overnight sterilization.
DDS Tatra Banky Administers Assets at SKK 5.47 billion as of Jan 9
Supplementary pension-insurance company DDS Tatra Banky, a.s., administered in its funds assets at a net
value of SKK 5.47 billion as of January 9 of this year. The company administered the biggest volume of funds in its balanced contribution fund at over SKK 5.3 billion. It is a fund with more conservative fund-investing that poses a smaller risk for savers. In growth contribution funds that invest in shares and are more suitable for younger savers, the company registered assets with a net value of SKK 65.4 million. In the pension-payment fund the net value of assets exceeded SKK 98.6 million.
STOCK MARKET: SAX Share Index Moderately Firms at the End of Week
The official share index SAX closed week with a moderate firming, going up 0.15 percent, or 0.64 points to 415.74 points. Turnover on the Bratislava Stock Exchange (BCPB) increased from SKK 539.8 million on Thursday to SKK 736.772 million on Friday with SKK 1.445 million in share trading.
Sempol Holding Posts Profit of SKK 12.9 Mln. in Last Financial Year
Sempol Holding, a.s., Trnava, which finished its involvement in seed production at the end of August of last year and changed its name to Zeainvent, a.s. Trnava, posted sales of SKK 390.7 million last year. The financial year lasted from July 1, 2005 to the end of June, 2006. " Sempol spol. s.r.o., which acquired assets from our company and took over majority of employees, continues activities connected to seed production," informed chairman of the Zeainvent board of directors Milan Serbak. Zeainvent continues only in breeding activities.
Slovakia Lags behind EU in Research and Development Expenditures
EU member countries, including newcomers Bulgaria and Romania, spent over EUR 200 billion on research and development in 2005, representing 1.84 percent of their GDP. The ratio of research and development expenditures to GDP has not changed from the previous year. Slovakia, with expenditures at 0.51 percent of GDP, is considerably lagging within the whole EU.
VW Slovakia Valorises Tariff Classes by 7.5 Pct. from January
Bratislava-based car producer Volkswagen (VW) Slovakia, a.s., has a new collective agreement as of this January. VW Slovakia PR manager Silvia Nosalova told SITA that the firm concluded a collective agreement after the agreement with VW Slovakia trade unions for the period of two years. Among the most important points of the agreement Ms. Nosalova mentioned valorisation of tariff classes by 7.5 percent.
Health Offices Monitors Situation around Signing of Contracts
The Healthcare Supervision Office (UDZS) is monitoring the situation around the signing of contracts between healthcare providers and new health insurance companies Union Zdravotna Poistovna (UZP) and Europska Zdravotna Poistovna (EZP). "UDZS is checking whether new health insurance companies provided sufficient time and space for talks about contracts, whether they issued a sufficient number of contracts, and whether they filled the minimal public network," informed UDZS spokesperson Radoslava Miklasova. "If UDZS finds out that health insurance companies did not fulfill their duty, they can receive a fine of up to SKK 5 million or they may be stripped of the license," she added.