bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 19.01.2017 | Name days: Alnis, Andulis

DNB: Latvia may become a leader in GDP growth among Baltic States next year

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn spite of recent developments in the world and Eurozone, the global situation remains largely stable and beneficial for the development of the Baltic market. The current trend shows that 2016 and 2017 will become significant for Baltic States in terms of lending growth and attraction of new trade partners, all of which will bring positive developments for internal and export markets. Estimates show that Latvia may become a leader in terms of GDP growth among Baltic States in 2017.

As noted by DNB Markets economist Yekaterina Rojaka, the global situation is currently beneficial for Baltic States – growing oil prices help create a healthy inflation, the possibility of Brexit is relatively low and the Chinese economy continues to become more stable and developed, which reduces risks on financial markets and provides confidence to investors.

In total, the economy of Baltic States continues growing at a steady pace. Growth rates in all three Baltic States will likely exceed the average indexes across the EU this year. GDP growth in Latvia could reach 2.5% this year (2% in Estonia and 3% in Lithuania).

DNB has reviewed outlooks for Latvia. It was previously expected that GDP could grow more than 3% this year. According to DNB economic expert Peteris Strautins, the review of the outlook was mostly determined by the decline in transit; consumption growth also looks weaker than expected. Growth is also impeded by the gradually reducing influx of money flow from EU funds. Such conditions were previously expected. At the same time, one of the most beneficial factors to growth turned out in accordance with expectations – household lending continues to grow, but the main macroeconomic influence will follow soon. For example, the volume of new mortgage loans of DNB Bank had more than doubled in Q1 2016. The beginning of 2015 was an unusual period of time, especially considering the uncertainty with the principle of left keys. Nevertheless, the volume of new mortgage loans was three times larger in the first three months of 2016 in comparison with any other period starting from 2008.

GDP growth may be somewhat disappointing this year. However, it can be expected that everything in Latvia’s economy that was not strong to begin with will finally break by the end of 2016. The list of risks that pose a threat to future growth will become narrower and factors that contribute to welfare will become stronger.

Rojaka also mentions that the rules of the transport and logistics sector have changed – while in the past the industry handled entire wagons with cargoes, carried volumes have declined to kilograms now. Competition is very high in the industry, so it is important to be able to sell oneself. The expert is also positive about Rail Baltica project, which is expected to contribute to economic development of all Baltic States in a long-term perspective – new investments, new jobs, additional services, etc. At the same time, the expert expresses her disappointment that politicians seem incapable of reaching any kind of agreements regarding economic benefits on the scale of Baltic States alone. Unfortunately, this trend is already noticed in other industries.

Peteris Strautins mentions that even though there is some progress in macroeconomic indexes, this does not mean Latvia has entered stagnation. The economy in Latvia and other Baltic States is developing dynamically. However, in addition to that there is also the effect of limited demand and trade with other countries of the former USSR. This effect is weaker in other EU countries. This is why Baltic States were not as good last year as they did in previous years. By overcoming this short-term influence, Baltic States can become leaders in Europe once again. The most rapid growth is expected to take place in Latvia next year. GDP growth there is expected to be 3.5%.

Ref: 102.109.109.9636


Leave a reply

WhatsApp to be provided with bank-contacting functionality

Continuing the digitization process and studying customer habits more intently, it is planned to allow customers resolve matters related to finances using WhatsApp, DNB Bank reports.

U.S. commutes sentence of classified-document-leaker Manning

U.S. President Barack Obama has commuted the sentence of the former U.S. soldier Chelsea Manning, found guilty of stealing and leaking a vast material of classified material to transparency organisations.

Mamikin expects things to get worse in EU after EP elections

MEP Andrey Mamikin predicts the situation in the EU to become worse after elections in the European Parliament and the election of Antonio Tajani as president.

Study results about Latvian schoolchildren urge immediate action

«OECD’s study about the level of knowledge of Latvian schoolchildren urges immediate action. We cannot stop with average results – we have few youngsters, and we cannot afford to give them secondary education,» – said Chairman of Saeima’s European Affairs Committee Lolita Cigane and head of Education, Culture and Science Committee Ilze Vinkele.

Opinions: untrue myths about export in Latvia

Although Latvia is a successful country in Northern Europe, some of the country’s residents believe that all of Latvia’s export depends on Russia and that salvation lies in small wages. Big Event representatives offer their look on what is true.

EHC: Lithuania violated prisoner’s rights with barring internet access

A jail in Lithuania has unjustly barred a prisoner from accessing the internet, according to a ruling by the European Court of Human Rights.

Oil price on a rise in the world; exchange indexes decline in USA and Europe

The price of oil in the world this morning, 18 January, grew in relation to US dollar’s value drop and expectations regarding commercial oil reserves in USA, which compensates on the market the influence from predictions in Russia and USA about oil production increase by the end of 2017.

Association asks to sign proposal on publication of audio recordings from Saeima meetings

In the assessment of deputy quotas the Budget and Finance Committee worked as voting machines. They did not try to assess each proposal’s purpose, states Delna – Society for Openness, urging other to sign a proposal on Manabalss.lv for the publication of audio recordings made during meetings of Saeima committees.

Estonia to raise wages for healthcare workers

Estonian Health Insurance Fund's has allocated a total of 23.6 million euros for raising wages of health care workers, who last year asked for at total of 68 million euros.

Defence cooperation agreement concluded by Estonia and U.S.

Estonia and the U.S. have signed a bilateral agreement on cooperation in the field of defence, which clarifies the legal framework for the presence of American Armed Forces in Estonia.

Influenza epidemic declared in Latvia

On Tuesday, 17 January, Disease Prevention and Control Centre declared the beginning of an influenza epidemic in Latvia.

Vegetable prices in Northern Europe increased by tough weather in south

Due to Italy and Spain having unfavourable weather for growing vegetables, prices of a number of vegetables are likely to increase.

Reirs: Latvia should introduce minimal social fees

In the next year’s budget it will be necessary to plug the EUR 50 million-large hole in the social budget, said Welfare Minister Janis Reirs in an interview to LTV on Tuesday, 17 January.

European Parliament speaker’s election won by Italian Tajani

Italian right-wing politician Antonio Tajani has won the election for the post of the chairman of the European Parliament. The 63-year-old Tajani is a former press representative of convicted former Italian PM Silvio Berlusconi and an ex-European commissioner

In spite of opposition from businessmen, government supports railway electrification project

On Tuesday, 17 January, the Cabinet of Ministers supported Transport Ministry’s and LDz’s proposed project for electrification of the country’s railway network and its further development. The plan provides for the electrification of the railway network from Daugavpils and Rezekne to Riga through Krustpils, as BNN was informed by Transport Ministry.

Study: users still do not make passwords that are sufficiently secure

«Considering the amount of private and confidential information we tend to store on the internet, users should be more careful about security and effective passwords. This seems self-explanatory, but many people, it seems, do not understand how easy it is to make password-management mistakes,» – says Kaspersky Lab consumer commercial manager Andrey Mohola.

SRS uncovers 3,200 litres of illegal diesel fuel in Riga

During an information check regarding possible storage and realization of illegal diesel fuel, State Revenue Service’s Customs Police uncovered illegally stored diesel fuel within a garage territory in Riga on 11 January, 2017.

GFK determines the most popular smart-phones in Latvia

Last year, Latvians were prepared to spend more money on smart-phones than in 2015. According to results of a study by GFK, residents spent EUR 389 on the purchase of a smart-phone on average.

BATL: intention to electrify railway line is either incompetent or is the scam of the century

In spite of the industry’s calls over the past two years, Transport Ministry still has not provided a cargo attraction plan, a unified offer for our cooperation partners. Nor do we have a clearly defined transit strategy and development direction, says Baltic Association – Transport and Logistics.

Poroshenko warns Ukrainians could get disillusioned with Euro-integration

The choice of the people of Ukraine to go the road of deepening ties with the European Union could turn into disappointment if delays with visa regime and association agreement continue, Ukrainian president Petro Poroshenko stated.

Ventspils municipality’s planned budget expenditures are higher than revenue

On 12 January, Ventspils City Council approved the budget for 2017. It is stated in the document that the base budget’s planned revenue is EUR 13,584,298. Budget expenditures are planned at EUR 22,652,396, as reported by Marlena Zvaigzne, editor of Ventspils Novadnieks.

Rating: Estonia best in Baltic in growing and retaining talent

In a rating on the success of countries in growing, attracting and retaining talented workers, Baltic states have all been ranked in the top 33 out of 100 countries.

FM: gradual transfer to electronic procurements is planned

«The procurement field has changed significantly over the past several years. And it is not just because of the new directive announced by the European Parliament and European Council for procurements. One other factor to consider is the aiming for better management, reduction of the administrative burden and more efficient use of public resources,» – reports Finance Ministry’s Legal Department expert Liga Neilande.

Adding more EUR 10m Rail Baltic stops up for analysis, says Ratas

The current project of the international high-speed railway Rail Baltica contains three stops in its Estonian part, while adding more would need careful analysis, stated Estonian Prime Minister Jüri Ratas.

Okmanis: stores should become modern to survive

Competition in the trade sector continues to grow in Latvia, admits Raimonds Okmanis, chairman of Latvian Traders Association.

When do you pay fines for speeding?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: