Spectator on facebook

Spectator on facebook

Analyst: Foreign trade in April made up for a weak March

The foreign trade surplus increased in April 2016 to €404 million, fulfilling expectations after weaker “Easter” figures in March.

(Source: Sme)

The Slovak Statistics Office (ŠÚ), based on more accurate data, also revised the surplus for the first quarter (Q1, by €46 million). Thus, the 12-month surplus of foreign trade increased in March from 4.1 percent to 4.2 percent of GDP.

The more significant correction of the lower March figures was in accordance with our expectations, Ľubomír Koršňák, macroeconomic markets analyst of the UniCredit Bank Czech Republic and Slovakia, wrote on March 9.  

Even more positive than the overdraft itself was the recovery of turnover in foreign trade. Both exports and imports were marked by a strong correction, virtually totally annulling the March losses.  In April, exports increased by 3.0 percent against the previous month (seasonally adjusted, according to UniCredit Bank). They returned to black numbers in year-on-year comparison, higher by 6.4 percent against 2015. Thus, they seem to also confirm the hypothesis about Easter falling at the end of month (and quarter) having impacted the balance, at least partially. This would also explain the weaker growth dynamics of exports. It seems that the automotive industry remains to be the main driving force behind exports.

Also imports grew dynamically in April, according to Koršňák, by 4.1 percent (seasonally adjusted) and their y-o-y growth was revived, too – increasing by 3.9 percent compared to last year. The post-Easter stocking of stores with goods seems to be behind this dynamic growth, as well as stronger consumer imports. Nominally, also the recovering oil prices on global markets increased the amount of imports.

The outlook is for the foreign trade surpluses to gradually grow and then stabilise in the following months – around 4.5 percent of GDP, Koršňák concluded. 

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

Rules for hiring foreigners are simpler. For exceptions

Despite positive changes, employers still point to some barriers preventing more effective and simpler recruitment of foreign workers.

Some problems with Foreigners’ Police continue.

For a Decent Slovakia protests to resume on Friday

After a summer break, organisers of the protests that have drawn masses to Slovakia’s streets stated that their – and the citizens’ – demands are far from being met.

For A Decent Slovakia march on June 22, 2018, in Bratislava.

News isn’t negative because journalists are cynical

The problem is caused by the demand side.

What is it like to study at a foreign college? Students explain to high-schoolers

Some Slovak students who study abroad already have work offers.

Students during the workshop