Analysts: Slovakia's Exports to Recover at Extremely Slow Pace

Bratislava, April 9 (TASR) - Exports from Slovakia will recover only extremely slowly, as they will continue to be hindered by weak external demand, especially in the first half of the year, and particularly on the 'domestic' European market, whereas from the second quarter onwards the new US tariffs will also come into play, potentially leading to a global trade war, UniCredit Bank analyst Lubomir Korsnak has stated in his comments on the Statistics Office's foreign trade balance data for February. According to Korsnak, the US tariffs will particularly affect Slovak car producers, who will have limited opportunities to find alternative markets. "Domestic car manufacturers will first try to redirect some of their exports to the South American market, but this market probably won't be able to compensate fully for the sales losses in the USA," said Korsnak. "While higher customs duties will initially intensively impact demand from established markets outside the EU, companies are beginning to find solutions that will gradually offset the changes," added Tomas Bohacek, an analyst at 365.bank. In Bohacek's view, the real question is no longer whether tariffs will negatively affect the economic prosperity of businesses and the country, but how to minimise their deleterious effects as much as possible. "From the government's perspective, the key priority should be to support the domestic business market, but this is not yet apparent in its actions, and as a result economic conditions will be all the more difficult for us," stated Bohacek. On Wednesday, the Statistics Office reported that Slovakia's foreign trade in February recorded a deficit of €41.9 million, compared to a surplus of €652.3 million during the same period of last year. This was the third consecutive month with a foreign trade deficit. mf/df