A growth in retail earnings, higher salaries for employees, increased bank savings and a drop in industrial production influence the Slovak economy at Christmas, according to Slovenská sporiteľňa bank. "This is most tangible in the retail sector. In comparison to the January-November average, the earnings of Slovak retail are approximately 20 percent higher in December," said Slovenská sporiteľňa's analyst Katarina Muchová. Before Christmas, people tend to buy gifts, groceries and drinks. On the contrary, however, retail proceeds are usually 10 percent lower than the average in January. Slovaks are able to spend more in December partly thanks to Christmas bonuses and the so-called 'thirteenth salaries' that firms pay to their employees at the end of the year. "Some employers pay bonuses as early as in November, others in December, which makes November and December salaries usually higher than those seen in other months," said the analyst. Higher salaries at the end of the year also usually translate into savings. "In December, the volume of deposits into commercial banks is higher than in an average month. Within the past five years deposits in December have grown by an average of €360 million, whereas average monthly growth in deposits in January-November was €75 million," said Muchová.
The Christmas season causes a drop in industrial production. "The drop in December usually equals 5 percent in comparison to the January-November average," claimed Muchová, adding that this is due to companywide holidays. "However, the suspension of production is more pronounced in the summer, particularly in August, when production decreases by as much as 10 percent when compared to the average month."
