Weaker currencies of Slovakia's neighbours entice shoppers

The weakening of the currencies of surrounding countries has made shopping abroad an enticing proposition for Slovaks. "The swings in the currencies of neighbouring countries versus the euro may have an effect on 'shopping tourism' among Slovaks in these countries", said Slovenská Sporiteľňa bank analyst Katarína Muchová. The analyst noted, however, that only certain kinds of items tend to be worth going abroad for, as exchange rates aren't the only factor that prompts Slovaks to shop abroad. Poland has better prices for foodstuffs, clothing and footwear, while Hungary is cheaper for books, alcohol and household furnishings. The rates of currencies in the immediate vicinity of Slovakia are moving downwards along with the plunging euro. Moreover, the Hungarian forint and the Czech koruna have eased against the euro by 6 and 3.5 percent, respectively, since early last year. The Polish zloty is down 2.8 percent on the year. "Shopping tourism or making purchases via e-shops abroad are not a new thing in Slovakia. This tends to thrive especially when the currencies of the countries concerned versus the euro are weakening notably. This is apparently what we're witnessing now", said Poštová Banka analyst Jana Glasová. Price developments in the surrounding countries are also a factor. Slovakia's prices are currently roughly the same as a year ago, but food prices, for example, have dropped by more than 1 percent, said Glasová. Austria and the Czech Republic have seen moderate price increases, while the opposite is true for Hungary and Poland.