bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 24.04.2017 | Name days: Nameda, Visvaldis, Ritvaldis

Actual purchasing power of Latvian residents has exceeded its pre-crisis level

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe increase of income of Latvian households has contributed not only to the increase of private consumption, but also the state of financial savings, including deposits in all three Baltic States. Thanks to the increase of the financial security pillow, more and more families in Latvia are now capable of overcoming sudden financial shocks.

Furthermore, the improvement of the economic situation also contributes to residents’ positive outlook for the future. Residents now more actively take loans – demand for this service has increased. Nevertheless, it has yet to reach its pre-crisis level. No risks to economy are noted in relation to loans at the moment, accord to results of the Baltic Household Outlook by SEB Bank.

Last year, income of households had increased across all three Baltic States. Actual average wages had increased by 7.4% in Latvia, 6.9% in Estonia and 6% in Lithuania.

The actual purchasing power of Latvian residents had reached its pre-crisis level last year. Last year, actual average wages were 10% higher in comparison with 2008 and 25% higher in comparison with the peak of the economic crisis in 2010. According to SEB Bank’s estimates, actual income of residents per family member was approximately 7% higher in comparison with the pre-crisis period. In addition, income had increased for all household groups.

In spite of increased consumption in all Baltic States, residents continued creating savings last year. The volume of deposits made by residents had increased by 7.9% in Lithuania, 7.4% in Estonia and 6.3% in Latvia. The volume of savings of Baltic Residents had reached its historic maximum last year.

«Active creation of savings points to the fact that households are becoming more financially capable. This means they are also more prepared to face unexpected financial and economic shocks. The growing financial stability of residents is confirmed by the latest EU-SILC outlook, which mentions that the number of families unable to pay for unexpected expenses continues to decrease,» – as noted by SEB Bank social economy expert Edmunds Rudzitis.

Increasing income and growing confidence in tomorrow also contribute to the demand for mortgage and consumer loans. Compared with 2014, the volume of mortgage loans issued in 2015 had increased by 21% in Lithuania, 15% in Estonia and 9% in Latvia.

«The state programme for support of families with children played a major role in Latvia – it made mortgage loans more accessible. Nevertheless, the total volume of new mortgage loans (EUR 21 million) remains below the amount returned for previously allocated loans. Because of that, the total mortgage loans portfolio continues to decrease,» – underlines Rudzitis.

Demand for consumer and other loans had also increased in Lithuania and Estonia last year (+6.3% and +1.8%, respectively).

Ref: 102.109.109.8892


Leave a reply

Week in Lithuania. Imports from Belarus' Astravyets NPP restricted

Seimas on Thursday, April 20, adopted a bill to restrict electricity imports from the Astravyets nuclear power plant under construction in Belarus and other unsafe nuclear facilities in third countries.

Wider economic cooperation between Latvia and Singapore planned

As reported by Finance Ministry, work will be performed to establish wider economic cooperation between Latvia and Singapore, both in the field of tax administration and investments.

Lange: poor road quality causes drivers to lose more than one billion euros every year

Poor road quality in Latvia causes losses for drivers worth more than one billion euros every year, announced Janis Lange, chairman of Latvijas valsts ceļi, at an annual conference on Friday, 21 April.

Latvia and Lithuania continue work on single gas market’s development plan

Latvia and Lithuania continue working on single gas market development plan, BNN was told by Latvian Economy Ministry.

Belarus values Latvia’s experience developing e-management

Belarus values Latvia’s positive experience in development of e-management. Constructive cooperation in this field has provided residents in Latvia and Belarus with cheaper roaming tariffs and improved mobile broadband development, as reported by Environment Protection and Regional Development Ministry.

Poor skills in digital technologies can reduce one’s competitiveness on the market

Only 2% of board members in Latvia’s leading retail trade companies have skills working with digital technologies. The same applies to 6% of board members in transport and logistics companies, 4% - in energy companies and 0% in manufacturing companies, according to results of a study performed by personnel selection company Amrop.

Government decides not to support Ventspils’ involvement in Nord Stream 2

This week, Latvian government decided behind closed doors not to support the involvement of Ventspils Freeport in the Nord Stream 2 project, according to publicly available information.

Estonia to invest millions in IT and technology business development in regions

Close to 160 million euros are planned to be invested in developing the sector of information and communications technologies in Estonia outside larger cities, according to a state budget strategy for 2018-2021 by the Estonian government.

Bite buys Unistars and gains access to 5G frequency

Mobile communications operator Bite has bought telecommunications company Unistars, making a major step towards introducing 5G network in Latvia, as reported by Bite manager Kaspars Buls.

Study: Latvian businessmen feel threatened the most by increasing tax burden

Nearly all Latvian CEOs expect competition to grow in the future. In addition, this will happen in conditions of deficit of qualified workers, according to results of a study performed by PricewaterhouseCoopers.

Court in Russia bans Jehovah's Witnesses as extremist organisation

The Supreme Court of Russia has accepted a request by the country’s Justice Ministry to term Jehovah's Witnesses as an outlawed religious organisation - best known for going door-to-door looking for new converts -, considering it to be an extremist group.

Progress in the realization of insolvency reform in Latvia

New regulations listed in the Insolvency Law provide for increasing the role of creditors in the choice of figures supervising legal protection processes, as well as enhancing the work of administrators in supervisory institutions – expanding the capacity and authority of the Insolvency Administration in performance of supervisory functions and raising qualifications of employed administrators, as reported by Justice Ministry.

Demand for Barbie considerably down in Europe and North America

The overall sales of Barbie dolls have fallen 13%, world's largest toy company, American manufacturer Mattel has stated.

Weather in Latvia to be windy and rainy for the next couple of days

The end of this week and beginning of the next will be windy and rainy in Latvia, as reported by the State Environment, Geology and Meteorology Centre.

Lithuanian MPs deal with smut resolvedly, but is it sign of parliamentarian transparency?

If the Lithuanian lawmakers’ adhering to law and ethics was to be judged by the events from the last couple of weeks, one could conjure up an impression that the Lithuanian legislature is one of the most transparent around – and a whole lot such than the previous parliamentary term.

Riga International Airport will have a new air traffic control tower

Latvijas Gaisa Satiksme promises that Riga International Airport will have a new, modern air traffic control tower in 2013.

Lembergs will fight for his «warm seat» in the mayor’s office

Aivars Lembergs intends to participate in upcoming municipal elections in Ventspils as a mayoral candidate from his party – For Latvia and Ventspils.

Latvia’s financed loan volume increased by 72 million euros in Q1

In Q1 2017, loans worth more than EUR 94 million were issued through Latvian loan platforms, according to data compiled by Latvian Association of Alternative Financial Services.

Number of passengers carried by airBaltic grows 12%

Latvian national airBaltic airline carried 224,921 passengers to destinations in Europe, Scandinavia, Russia, CIS and the Middle East in March. This means a 12% increase in comparison with last year, BNN was told by the airline.

Birth rates in Latvia 6.9% behind previous year

Compared to the same period one year ago, 365 children fewer were born in Latvia in Q1 2017, which means a drop of 6.9 %.

Study: Latvia has become one of the centres for Russian organized crime

Russian organized crime groups, which often have ties to Kremlin, have varied their activities in Europe, including Latvia. This is why European institutions should consider them more of a security, not crime problem, as concluded in a study by British researcher Mark Galeotti* published by European Council on Foreign Relations.

Estonian state securities’ fund increases profits to 1.2 million euros

The gross revenue of the Estonian state securities and business support fund Kredex grew 16% reaching 7.1 million euros last year, while profits rose to 1.2 million euros, which is a 20% increase.

New CEO of Riga Freeport to have a major wage increase

Riga Freeport authority plans to announce a personnel selection process to find a new CEO for the Freeport, said Mareks Gailitis, advisor to chairman of the board of Riga Freeport Andris Ameriks.

20 asylum seekers resettled from Greece to Latvia

As part of the European Union’s resettlement programme, twenty people were relocated from Greece to Latvia on Wednesday, 19 April. Ten of those people are children, as reported by Office for Citizenship and Migration Affairs.

Estonia to impose banks with 14% advance income tax

Amending the Estonian income tax system, the country’s government has decided to push for a 14-percent advance income tax on banking institutions’ profits.

Newest comments