The current account of Slovakia's balance of payments ended in a SKK 14.7 billion (EUR 488 million) deficit in June. According to preliminary data published by the National Bank of Slovakia (NBS), the current account deficit thus deepened to a SKK 47.6 billion (EUR 1.58 billion) deficit six months into this year, which means worsening by SKK 19.1 billion (EUR 634 million) from the same period of last year. All current account components ended the first six months of this year in deficit. The balance of receipts posted the highest deficit of SKK 26.9 billion (EUR 892.9 million). Balance of current transfers was in a deficit of SKK 13 billion (EUR 431.5 million) and balance of services of SKK 6 billion (EUR 199.2 million). Trade balance posted a gap of SKK 1.7 billion (EUR 56.43 million).
In June alone, the development on the current account was similar than in the whole of H1. All current account components showed negative balance, on the highest deficit of the balance of receipts of SKK 8.1 billion (EUR 268.9 million). The balance of current transfers showed a deficit of SKK 4.8 billion (EUR 159.3 million) and the balance of services reported a deficit of about SKK 700 million (EUR 23.24 million) in June. The trade balance deficit was SKK 1.1 billion (EUR 36.51 million). Compared with June of last year, especially balance of receipts improved its performance this year, and so did trade balance. Thus the current account deficit in June of 2008 alone was SKK 5.4 billion (EUR 179.2 million) lower than a year ago.
The trade deficit in June was moderately better than the NBS had expected. Import and export figures differed from estimates only minimally. In July, the central bank expects moderate monthly decline of exports. "With regard to the holiday season, a lower export level should be reported in a majority of groups of goods. Considering the existing import intensity, also a reduced level is expected in imports, while just as in the case of exports, a similar pace as in the previous month can be expected," the NBS writes.
In August, exports should post a monthly drop under seasonal influences and continuing holiday season. According to the central bank, imports should reach the level of the pre-holiday season in September. Imports are also expected to fall in August mainly due to lower imports of semi-finished products. In September, imports are expected to grow again mainly due to higher imports of these products. "In general, with the exception of September, a continuing moderate year-on-year improvement of the trade balance may be expected," the central bank concludes.