Spectator on facebook

Spectator on facebook

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

Vallo: I will face up to the people no matter what

The new Bratislava mayor has four broad priorities to accomplish.

Matúš Vallo discusses the municipal elections at the SME daily.

Slovakia has many skilful people. Students should meet them

The new project by the Pontis Foundation tries to motivate young people through stories of successful business people.

The presentation of This is 21 project

Fico sticks with his old-style politics

Only the former PM knows whether the inspiration for his latest stunt was the success of the For A Decent Slovakia-supported candidates in the municipal elections.

For a Decent Slovakia gatherings return to streets

Protests will be held in Bratislava, Košice, Prievidza, Poprad, and even Brussels.