Latviski English По-русски
Friday 23.02.2018 | Name days: Haralds, Almants

Eastern European CEOs are optimistic the least about economic growth perspective

(No Ratings Yet)

The proportion of CEOs in the world who predict improvements in global economic growth in the next 12 months has growth to 44% this year, as opposed to 18% last year. The proportion of CEOs who do not expect any improvements to come in 2014 is now only 7%, as opposed to 28% last year.

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUCEOs from Western Europe are the most optimistic about the recovery of global economy (50%). They are followed by the Middle East (49%), Asia and the Pacific Ocean region countries (45%), Latin America (41%), North America (41%) and Africa (40%). CEOs of Central and Eastern Europe, including Latvia, are the least optimistic about global economy recovering in the near future (26%). CEOs of this region are certain that global economy will remain at the same development level as it is at the moment (56%).

Tourism and leisure sector employees are optimistic the most about the chances of global economy growing in the near future (46%), followed by banking and financial sector (45%), retail trade (44%), financial service providers (44%), asset management sector (44%), communications representatives (44%) and construction sector (41%). Those working in the metalworking sector are optimistic the least (19%).

39% of CEOs are confident in their plans to expand in the next 12 months. This is slightly more than there were last year (36%). Optimism was at its lowest in 2009 – 21%. CEOs of the Middle East are confident the most in their expansion plans (69%), followed by Asian and Pacific CEOs, whose confidence has reached 45% this year (36% last year), according to 17th Global CEO Survey data.

Confidence in Western Europe has grown 8%, reaching a total of 30%. Confidence in Africa, on the other hand, continues to decline. Only 40% of CEOs in Africa are confident about economic growth in the next 12 months, which is lower than last year (44% in 2013 and 57% in 2012). Confidence in Latin American countries has declined as well – 43% this year (53% last year). The situation in North America remains stable – 33% of CEOs there are confident about economic growth. It should be added that 37% of CEOs of Central and Eastern Europe, including Latvia, are very confident about expanding their enterprises in the next 12 months.

Confidence varies notably in terms of countries. CEOs with most confidence in the future work in Russia (53%), followed by Mexico (51%), Korea (50%), India (49%), China (48%), Switzerland (42%), Brazil (42%), the USA (36%), Germany (33%), United Kingdom (27%), Canada (27%), Japan (27%), Italy (27%), France (22%) and Argentina (10%).

In regard to global economic risks, interviewed CEOs mention concern over the decline in development rates of developing countries (65%) and sluggish growth in developed countries (71%). Other concerns revolve around growing taxes (70%), lack of qualified employees (63%), currency exchange rate fluctuations (60%) and instability of the financial market (59%).

Current regulations have increased costs for 80% of CEOs and made it more difficult for 54% of CEOs to find qualified employees. 40% claim regulations discourage them to explore new markets and consider introducing innovative solutions. On a more beneficial side, CEOs say strict regulations help them improve the quality of their services and their availability.

When asked to name three main priorities politicians should address, CEOs mention financial stability (53%), improve infrastructure (50%) and provide support in order to increase international competitiveness and tax system (50%).

According to results of the survey, it seems CEOs believe the international tax system has been successful. Nearly two-thirds of respondents claim the international tax system should be completely remodelled.

Most CEOs believe the control over tax system and competitiveness are two of the most important factors in corporate decision making. They agree that international companies should inform authorities about their income and tax payments in every country where they have offices. They also agree tax control authorities around the world should freely exchange such information with each other.


Leave a reply

LSRTC: Zaķusala TV Tower’s reconstruction will cost several dozen million euros

According to chairman of Latvia’s State Radio and Television Centre (LSRTC) Jānis Bokta, reconstruction of Zaķusala TV Tower will cost several dozen million euros.

Trade union worried teachers may not have time to prepare for new education content

Teachers may not have enough time to prepare to work with new education content, said manager of Latvian Education and Science Workers' Union Inga Vanaga in an interview to Rīta Panorāma programme of LTV.

Judins, Loskutovs, Čigāne and Dālderis to continue working in Unity’s faction

Saeima members Andrejs Judins, Aleksejs Loskutovs, Lolita Čigāne and Ints Dālderis will continue working in Unity’s faction and coalition.

Saeima supports member’s proposal to publish wages of Bank of Latvia employees

Latvia’s parliament has decided to support Ints Dālderis’ proposal to publish wages paid to employees of the Bank of Latvia, education institutions, as well as municipal capital associations.

More snow expected on weekends; air temperature to drop even more next week

On the night to Friday, 23 February, air temperature in most of Latvia declined to -21° C… -27° C. It was only warmer in Kurzeme and some parts of Vidzeme, as reported by Latvia’s State Environment, Geology and Meteorology Centre.

SEB Bank: more employment options will open up and workers will become more selective

«It is becoming easier to change jobs nowadays. The largest selection of employment options are found in regional centres and cities, especially Riga and Pieriga. We see fewer employment options in regions even though there is still considerable demand for workers there,» predicts SEB Bank’s macroeconomics expert Dainis Gašpuitis.

ABLV Bank’s manager claims the bank is ready for cancellation of payment restrictions

ABLV Bank is ready for cancellation of payment restrictions, said the bank’s chairman Ernests Bernis during a press-conference on Thursday, 22 February.

62.9% of Latvia’s population was employed in 2017

Compared to the year before, in 2017 employment rate grew by 1.3 percentage points and number of employed persons by 1.5 thousand. Employment rate among men grew faster than among women – by 1.6 percentage points and 1.0 percentage points, respectively. 894.8 thousand people or 62.9 % of Latvia population aged 15–74 were employed in 2017.

Lithuania and Latvia: the tale between two sisters marked with rivalry

Relations between Lithuania and Latvia, two tight-knit Baltic neighbours, may exemplify a sisterly relationship from the first sight, but just over the course of a single week, several pings rang, signalling that rivalry is, and has always been, a component of coexistence.

Lembergs unable to organize his private life because of intense court proceedings

Lembergs unable to organize his private life because of intense court proceedings

Unemployment level in Latvia decreased to 8.7% in 2017

85.4 thousand people aged 15–74 in Latvia were unemployed in 2017. Compared to 2016, the number of unemployed persons has dropped by 9.9 thousand or 10.4 %.

Council member: ECB is openly dissatisfied with restrictions imposed on Rimšēvičs

The European Central Bank (ECB) is openly dissatisfied with restrictions imposed on one of its council members – governor of the Bank of Latvia Ilmārs Rimšēvičs, said council member of the Bank of Latvia Edvards Kušners in an interview to 900 seconds programme of LNT.

Defence expenditures in Latvia planned at EUR 234 million in 2018

Latvian government plans to spend EUR 234 million on defence projects, including procurement of transports, ammunition, armaments and individual equipment, in 2018 as confirmed by Defence Ministry.

Ministry cancels mandatory procurement component permits for five CHP plants

Latvia’s Economy Ministry has made a decision to cancel the permit to sell electricity within mandatory procurement component for five other renewable energy co-generation plants plants: SIA Madonas Eko, SIA Eiro-Āzijas investment agency, SIA EVOKEM, SIA M Parks, and SIA Eco Latvis.

NSC proposes Maizītis for a second term as Chief of Constitution Protection Bureau

Members of Latvia’s National Security Council have decided to propose the current head of the Constitution Protection Bureau Jānis Maizītis for another term at the helm of this institution, as BNN was informed by the State President’s Chancellery.

Latvijas gāze’s subsidiary Gaso proposes reducing gas transmission price

Latvijas gāze’s subsidiary Gase has turned to Public Utilities Commission with a proposal for a new natural gas transmission system service’s tariff project, providing for a reducing gas transmission price by 18-46% for more than 95% gas consumers.

FCMC invites Bank of Latvia to provide ABLV Bank with yet another emergency loan

The Finance and Capital Market Commission (FCMC) has invited the Bank of Latvia to issue ABLV Bank another emergency loan.

Crime rate in 2017 was the lowest in Latvia’s history

Last year’s crime rate turned out the lowest in Latvia’s history, as reported by Prosecutor General Ēriks Kalnmeiers in his annual report.

LEC: government priorities should include searching for causes and solutions, not the guilty

Latvian Employers’ Confederation (LEC) is worried about ongoing events and their negative effect on the stability and future development of the country’s economy. LEC believes that stabilization of the financial situation requires careful coordination of actions between institutions and the government.

Producer price level in Latvia grew 0.9% in January

Compared to December 2017, level of producer prices in Latvian industry rose by 0.9 % in January 2018. Prices of products sold on the domestic market went up by 1.2 % and prices of exported products by 0.6 %.

Latvian President believes country’s financial system is stable; prime minister plans to report to European Council

«Latvia’s financial system is stable, and there is no reason to worry about possible instability of the banking system. Banks continue working as usual,» says the President of Latvia Raimonds Vējonis.

Corruption Perception Index in Latvia experienced no major changes in 2017

Latvia’s positions did not improve much in Transparency International’s compiled Corruption Perception Index 2017, said Delna – Society for Openness acting director Liene Gātere in an interview to Rīta panorāma programme.

Latvian citizens arrested in Britain under suspicions of organizing slavery

Five people were arrested in a joint international operation by Latvian and British law enforcement operatives, as confirmed by Latvian State Police.

Opinion: Russia is trying to use the situation to create chaos in Latvia

Russia is trying to use the established situation to create chaos in Latvia. Efforts, however, are fated to fail, says chairman of Saeima’s Defence, Internal Affairs and Corruption Prevention Committee Ainars Latkovskis.

Dismissal requested for Latvia’s Finance Minister; parties worried about finance sector sinking deeper

Latvia’s Finance Minister Dana Reizniece-Ozola has failed to prevent the decision made by United States Department of the Treasury, which is ruinous for the country’s financial sector and humiliating for its reputation, says chairman of New Conservative Party Jānis Bordāns.