Latviski English По-русски
Monday 24.10.2016 | Name days: Renāte, Modrīte, Mudrīte

Businessmen around the world grow more confident about economic recovery

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe general mood among business managers in Europe and Asia has improved notably over the past year. Businessmen are generally optimistic about their future perspectives for the next three years.

Compared with 2014, the sense of confidence about economic growth and economic perspectives has grown 69% among business executives in Europe, 66% in Asia and Pacific Region and 52% in USA, according to results of CEO Outlook Study 2015 carried out by KPMG.

Looking at their company’s development chances, 70% of CEOs in Europe and 68% Asia and the Pacific region admit they are now more confident than they were one year ago. CEOs in USA, where economic recovery has been noted for a long time, are 19% more confident about economic growth than they were one year ago.46% are as confident about their own economic growth perspectives. Young job seekers also have a lot to look forward to – CEOs around the world are prepared to take on new staff. 78% of respondents admit they plan to constantly expand their employee roster up until mid-2018.

«The rise of optimism is also good news for Latvia. This opens up new investment-attraction options for local companies in Latvia and development of business relations in other countries. It should come as no surprise there has been increased interest for Latvia among American investors lately, especially in the field of IT and new technologies. Economy of USA is currently developing more rapidly than that of Europe. With that, the appetite of American investors grows more rapidly than anywhere else in the world. Latvia’s economic development trends in early 2015 have demonstrated positive development: GDP growth is higher than previously planned in exports and domestic consumption. On the one hand, decline of exports to Russia has been compensated by increased export volumes to markets like Lithuania, Denmark, Britain and USA. On the other hand, the growth of wages contributes to domestic consumption. However, Latvia remains dependent on political and economic development in Russia and the recently surfaced economic fluctuations in China,» – comments KPMG Baltics partner Armine Movsisyana.

The biggest headache for businessmen is caused by the growing competition pressure. 86% of respondents also say they are concerned about their clients’ loyalty, 74% are worried about the growing influence of market newcomers, 72% are cautious about their ability to keep up with developments of new technologies and 68% are worried competitors could take over their business.

The study shows that only 44% of CEOs are ‘somewhat satisfied’ with their current business model. 5% expressed their dissatisfaction and 29% of CEOs said they plan to carry out major changes in the next three years.

In regard to the most important investment plans for the next three years, CEOs mentioned expansion beyond their country’s borders as the main priority. American CEOs have Europe in their sights, especially Central Europe, as well as South America and China. CEOs in China, Japan, Britain, Germany, Spain and France see USA as a region with the largest growth potential.


Leave a reply

Week in Lithuania. Lithuania unveils new tourism brand

Lithuania will until 2020 use a new tourism brand to market itself to foreign tourists. The new brand, unveiled by the State Tourism Department on October 19, features the words «Lithuania. Real is beautiful» printed on a pastel mint postage stamp

Economic Diary of Latvia. The richer the people, the better the security

A very interesting matter was voiced in Latvia this week. The matter addresses the link between the overall level of welfare of the country’s residents and the country’s national security.

Four teachers in Latvia are paid wages that exceed EUR 2,000

In September 2016, the biggest teacher’s salary paid in Latvia with bonuses was EUR 2,260.27, as LETA was informed by Education and Science Ministry.

Producer price level down 1.6% in Latvia’s industry

Compared to August, the level of producer prices in Latvian industry increased by 0.3% in September 2016.

SRS Tax Debt Enforcement Office director Cerneckis steps down

On Friday, 21 October, director of Latvian State Revenue Service’s Tax Debt Enforcement Office Kaspars Cerneckis submitted his resignation.

Bookmakers predict Sadurskis’ remainder in his post for the rest of the year

Latvian Education Minister Karlis Sadurskis has been forced to distance himself from political opponents and teacher trade unions because of criticisms regarding reduced wages caused by the teachers’ pay reform. Nevertheless, political support will keep the minister in his post, bookmakers believe.

Lithuanian military discussing deployment of long-range missiles

A senior Lithuanian military officer has on October 20 stated that Lithuania is considering the deployment of long-range missiles in the country in the framework of hosting a multinational NATO battalion in 2017.

Ukraine in joint declaration with Lithuania, Poland condemns WWII aggressors

The Vekhovna Rada of Ukraine has this week adopted a joint declaration with Lithuania and Poland attaching responsibility for World War II to Germany, the USSR and the international community’s «appeasement policy».

Saeima Budget Committee conceptually approves 2017 budget project

On Thursday, 20 October, Saeima’s Budget and Finance Committee supported the state budget project for 2017, the medium-term budget contents for 2017, 2018 and 2019 and 57 legal drafts associated with the project.

Facebook sorry for removing breast cancer informative video

Facbook has expressed apologies for the removal of a breast cancer informative video shared on the social network by a Swedish foundation.

Two of the last twenty three first refugees have left Latvia

The last two of the first twenty three refugees resettled in Latvia have left for Germany, as reported by LTV.

Pregnant woman in Italy dies after doctor allegedly refused to perform abortion

Police in predominantly Catholic Italy is investigating a case of a woman pregnant with twins dying after miscarriage.

Russia applies discount on transit from Belarus

Russian Railways has applied a 25% discount on petrol, diesel fuel and crude cargo transports from oil processing plants in Belarus to Russia’s north-west ports. With that, Russia has basically provided Belarus with tariffs equal to tariffs in Baltics.

The first container train headed for Riga departs from China

On Thursday, 20 October, Latvian Transport Minister Uldis Augulis, representatives from LDz and YXE International Container Train, multiple Chinese officials and Latvia’s ambassador in China Maris Selga saw off the first test container train from China to Riga.

Customs officials intercept hashish shipment worth EUR 2 million

Latvian State Revenue Service’s Customs Police intercepted and confiscated a shipment of more than 200 kg of hashish worth EUR 2 million, as journalists were informed by SRS Customs Police Director Kaspars Podins on Thursday, 20 October.

SA: Riga Freeport has only realized one of five of our recommendations

Latvian State Audit follows the development of the largest investment projects especially carefully, because the state does not seem to handle them all that well. Krievu Island project is one of the largest investment projects, because there is European Union finances invested in it...

Job seekers in Lithuania want Western salaries, employers dumbstruck

Although Lithuanian labour market is in desperate for workforce, but those willing to toil will nod to a job offer only if the pay is really big. So big that the country‘s hirers feel like grabbing their heads upon hearing the candidates‘ salary expectations.

Overall government budget decreased in 2015

In 2015, the general government budget deficit amounted to EUR 309.0 million or 1.3% of the gross domestic product, whereas the general government consolidated gross debt amounted to EUR 8 846.3 million or 36.3% of the GDP.

SP: claims about Motorola’s murderer are an attempt to show Latvia as the enemy

Latvian Security Police views claims that Donetsk military commander Arseny Pavlov, aka Motorola, was allegedly killed by a hired killer from Latvia named Marks Ozolins is nothing more than yet another attempt at information war aimed to demonstrate Latvia and its citizens and enemies.

Estonian President Kaljulaid not to ask state to pay rent

Estonia’s new President Kersti Kaljulaid will not ask the state to pay rent for using her home unlike the former head of state Toomas Hendrik Ilves did.

Every third coin with Milda’s image has made its way to Europe

Every third euro coin with Milda’s image has found its way to Europe. The proportion of those coins in Latvia is 71% of all euro coins in circulation, according to monitoring data compiled by Citadele Bank’s CBL Cash Logistics service.

Estonia plans to increase female proportion in military

Estonia has announced plans to triple female involvement in the country’s Defence Forces and to expand the list of units accessible to woman soldiers by 2018.

Pre-paid mobile card users to be registered as part of a plan to reduce grey economy

At the meeting of state secretaries on 20 October, a proposal was presented from the transport ministry to begin registration of mobile pre-paid card users.

Next year’s budget plan and other decisions viewed by Saeima this week

On Thursday, 20 October, the Saeima will gather for an extraordinary meeting, during which deputies will discuss the next year’s budget plan and 57 associated legal drafts.

European Space Agency attempts to re-connect to its Mars probe

The European Space Agency has lost contact with its Mars probe on October 19 shortly prior to its planned landing on the planet.