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Boost in consumer spending does not promise long-term economic growth
6 Aug 2013 Flash News
Slovak retail sales for June grew in the second quarter of 2013 for the first time amid a continuous decline since 2009.
The Sme daily quoted UniCredit bank analyst Ľubomír Koršňák as saying that in addition to the surprising rise in household consumption, car purchases and money spent in hotels and restaurants have soared. ČSOB analyst Marek Gábriš sees the low relative basis for comparison - after the continued decline of the last several years - and the rise in real wages beginning in 2013, as being behind this development, Sme wrote in its Tuesday, August 6, issue.
However, analysts agree that results from one quarter cannot really be interpreted as a true revival of national household consumption. Slovakia’s high unemployment rate remains a problem, and continues to rise. “The situation on the labour marker is tense,” Koršňák said. “This is one of the reasons why I think that the growth in sales will be moving close to zero in the near future.”
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