* April foreign trade surplus jump surprises
* Trade balance obscured by sharp slump of imports
By Martin Santa
BRATISLAVA, June 11 (Reuters) - Slovakia's foreign trade showed a surprising surplus in April, but the good headline figure was obscured by an import slump that pointed to a sharp decline in investment activity.
The country's trade balance, heavily dependent on exports, showed a 372.4 million euro monthly surplus, while analysts had expected a 41.3 million deficit. [IDnLB766409]
The surplus was boosted by a 35.9 percent slump in exports, the worst so far since the economic crisis started. Exports fell by 24.3 percent.
"This (surplus) is a big surprise," said Tatra Banka analyst Juraj Valachy. "This is due to a drop of imports of investment goods, which have a significant weight in overall imports.. a 25 percent share."
"This will have a marked impact on the trade balance... but this is not good for the future, because this means there are no investments being made," added Valachy.
The statistical bureau also raised the March surplus reading to 104.9 million euros from the previously reported 81.9 million.
Slovakia, which adopted the euro in January, has avoided a direct hit from the financial crisis on its banks.
But a collapse in west European demand for its key goods, such as cars and electronic equipment, has sharply hit the manufacturing industry.
The 70 billion euro economy shrank more than expected in the first quarter, falling by 5.6 percent.
The government said the full-year contraction, the first ever since the country's foundation in 1993, was likely to be more than 3.5 percent. [ID:nL3618633]
The Finance Ministry is expected to publish its updated growth and inflation forecasts in the coming days. In a separate data release the statistical office said inflation slowed to a near four-year low in May, continuing its easing for the eighth consecutive month and analysts said consumer prices could drop further by the year-end on lower utility prices.
"We could see a further drop (in the annual inflation rate), in case of lower gas prices (for households) later this year," Valachy said. "But for now this seems like a bottom."
Consumer prices rose by 0.2 percent month-on-month last month, above market expectations of stagnation, putting the annual headline inflation rate 2.2 percent, its lowest reading since September 2005 [ID:nLB35328].