Ladies and gentlemen
Slovak Rating Agency as an independent entity in the Slovak economic scene is coming to the market with new indicators of economic development: ESO (ekonomická sila občana = economic strength of the citizen) and POP (predpokladaný objem produkcie = assumed volume of production). These indices are not based on new searches or surveys. Their value added is aggregation of certain magnitudes accessible to public into the form understandable also for more general public. In a certain sense, the Slovak Rating Agency strives to help the public deeper understand economic considerations. What led us to construction of particularly these indictors?
Philosophy of the index ESO
Common citizen is usually not aware of economic considerations in detail, while most of them do not have in their vocabulary such notions as gross domestic product, payment balance or actual efficient exchange rate. That is why our Agency took a decision to construct an index that would offer a complex view of economic strength of citizen, his/her will to purchase and just marginally also his/her expectations with regard to the future. The index ESO has in its basis such indicators as real wages, unemployment, retail revenues or real interest rates and others that are directly related to the life of common citizen. ESO will be published on monthly basis (always on approximately the 15th day of the month) based on information available to public and, in effort to achieve maximum transparency, the procedure of calculation will be published, too.
Philosophy of the POP index
In the world, there are common indicators talking about macro-economic expectations of business entities. Designers of economic policy strive to know and to form behaviour of participants in economic transactions. In Slovakia, there are economic trend researches of ©ÚSR (Bureau of Statistics of the Slovak Republic) trying to accomplish this task. The aim of the Slovak Rating Agency is to argue with expert public on expectations in economy and on their formation. A platform hereby will also be the POP indicator that follows expectations of the future development of the society in industry and construction sector. POP is actually a certain aggregation of selected trade and development into a more understandable form. In the future, the basis of the POP indicator may hopefully be extended to cover also market services, so as to obtain even a better picture of expected economic development in Slovakia.
On our pages (since 27 June 2001), you can find detailed information on those indicators, as e.g. construction, history, comments as well as answers to frequently asked questions. We believe that, through our indices, a more comprehensive discussion will be started both of indicators best describing the life of common citizen as well as of expectations of market entities. If this is the case, we will find introducing the indices ESO and POP a successful step.
Slovak Rating Agency
 |
 |