Slovak economy expands on exports to rallying eurozone

Eurozone member Slovakia saw its export-driven economy pick up in the second quarter of the year on a strong showing by its key trade partners, official data showed on Wednesday. The economy, driven by auto and electronics exports, expanded by a seasonally-adjusted 0.3 percent in the second quarter from the first quarter, up from 0.2-percent growth in the previous three-month period. The uptick comes as the eurozone exited recession at last with strong second-quarter growth led by Germany and France, important markets for Slovak exports. "Growth was driven by exports thanks to a surprisingly positive development in the EU, which posted 0.3-percent growth in the second quarter, especially Germany which grew by 0.7 percent," Slovenska Sporitelna analyst Martin Balaz told AFP. On an annual comparison, the Slovak economy grew by a seasonally unadjusted 0.9 percent in the second quarter compared to the same period last year, up from the 0.6 percent rate in the first quarter of 2013, the Slovak Statistics Office said. Slovakia, which joined the European Union in 2004 and the eurozone in 2009, posted two-percent growth last year -- a strong showing for a member in Europe's crisis-hit single currency bloc. But because of flagging exports to eurozone trade partners and weak domestic demand, the finance ministry has cut its 2013 growth forecast to 0.5 percent.