Boost in consumer spending does not promise long-term economic growth

Slovak retail sales for June grew in the second quarter of 2013 for the first time amid a continuous decline since 2009.

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.”

(Source: Sme)
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

Deputy parliamentary speaker sent selfies to Alena Zs.

Yet another influential Smer politician, Martin Glváč, faces accusations of talking to Kočner's collaborator.

Igor Matovič of OĽaNO holds a picture of Martin Glváč (Smer).

Coalition demands the right of reply for politicians

Politicians ponder new provisions for the Press Code, Speaker of Parliament Danko wants to defend himself against op-eds too.

The ruling coalition (L-R: SNS-Andrej Danko, Smer-Robert Fico. Most-Híd-Béla Bugár).

UPDATED: More critical voices speak out against Danko’s doctoral dissertation

Three more academic institutions and the Slovak Academy of Sciences have supported the universities in their criticism of the paper and the actions of the current education minister.

Andrej Danko