Slovakia’s economic growth in the last quarter of 2007 increased from 9.4% in the third quarter to a surprising 14.1%. Although a small part of this increase was caused by one-off excise tax income related to increasing stock of tobacco products created due to the expected increase of excise tax on these products.
Euro-adoption proceeding according to plan.
The Slovak central bank chief -Ivan Sramko- said on Thursday the crown's conversion rate to the euro should reflect fundamentals, boosting the currency as analysts took thecomments to mean the switchover level would be strong.
Slovakia wants to adopt the euro in 2009 as the first ex-Communist country with a floating exchange rate and it expects the conversion rate to be set in June or July if it is judged ready to join the single currency zone.
"In principle, what is sought for is the real equilibrium rate which means an exchange rate that will not fundamentally change the conditions in the economy," Sramko told reporters onsidelines of an economic seminar.
The crown jumped one percent against the euro after Sramko'scomments as the market saw them as a signal the NBS may want to see a stronger currency before the euro entry level talks.