Latviski English По-русски
Tuesday 22.08.2017 | Name days: Rudīte, Everts

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

Terrorists in Barcelona were planning three explosions

Terrorists, who performed two attacks in Catalonia last week, were initially planning to blow up three shuttle buses in crowded areas in Barcelona, as reported by El Espano.

Lawyer: Maxima wants to earn by reducing compensations for the tragedy

Maxima Latvija and Zolitude 21.11 have reached an agreement on payment of EUR 900,000 to support victims of Zolitude tragedy – EUR 5,000 to EUR 75,000 to each person, as reported by Maxima Latvija.

Producer prices in industry in Latvia grew 0.4% in July

Compared to June, the level of producer prices in Latvian industry rose by 0.4 % in July 2017. The prices of products sold on the domestic market increased by 0.5 %, whereas the prices of exported products grew by 0.3 %.

Enefit: Latvia reduces electricity price difference with neighbouring countries

In recent years, Latvia has managed to reduce the electricity price difference with other Baltic neighbouring countries, as reported by Enefit Chairman Janis Bethers.

Farmers Saeima: butter price will not remain high for long

The high price on butter in Latvia will not remain so high for long, said Farmers Saeima Vice-Chairperson Maira Dzelzkaleja-Burmistre in an interview to 900 seconds programme of LNT.

Aseradens elected as chairman of Unity; Krisjanis Karins to lead party’s city council faction

Unity elected Economy Minister Arvils Aseradens as the new chairman of the party. MEP Krisjanis Karins has been elected as the party’s leader in Riga City Council with Santa Zarane as his deputy.

LPS manager: forming the budget, it is important for municipal funding to stay the same

In the formation process of the next year’s state budget, it is necessary to guarantee finances do not reduce for municipalities, said the chairman of Latvian Association of Local and Regional Governments Gints Kaminskis in an interview to Latvijas Radio.

Police to organize inspections in stores; parents asked to watch their children as well

For the new school year, Riga Municipal Police will be performing regular inspections at stores, bars and cafes from 21 August to 31 August, as well as the first days of September, to make sure minors are not sold alcohol and tobacco products, BNN was told by police.

Colder masses of air to enter Latvia this week; more rain expected

This week’s weather in Latvia will be dictated by a cyclone hovering above Northern Europe. Colder masses of air will flow into the country. A lot of rain is expected in Latvia this week, as reported by State Environment, Geology and Meteorology Centre.

Kirsis asks police to assess possible forging of votes at Riga City Council

Riga City Council’s Unity faction chairman Vilnis Kirsis has asked State Police to check if the city council’s electronic voting system was used without another deputy’s knowledge or consent, said the politician.

Expert: attack in Spain shows how terrorists switched to more easily reachable targets

Terrorist attacks that transpired in Spain this week shows how terrorists have switched to more easily reachable targets, where security requirements are not as strict, says Latvian National Defence Academy’s Security and Strategic Research Centre researcher Martins Hirss.

New mandatory tests in schools to be introduced four years from now

In four years’ time – 2021/2022 school year – it is planned to introduce completely new mandatory tests in schools, as reported by State Education Content Centre Director Guntars Catlaks.

Nearly 9,000 children and their parents got homes thanks to state support programme

In the first half-year of 2017, state support helped 1,527 families in Latvia to buy homes. Compared with last year, families’ demand for state support has grown 6%, as reported by Altum finance institute.

Prediction: Aseradens will likely take control over Unity

Economy Minister Arvils Aseradens will become the head of Unity, Betsafe bookmakers predict. The possibility of Aseradens becoming the head of the party is given 45% probability by Betsafe.

Provisional estimate for next year’s fiscal space in Latvia is EUR 60 million

Next year’s fiscal space has been estimated at EUR 60 million, as noted by Finance Minister Dana Reizniece-Ozola, adding that a more precise estimate will be available at the end of August.

Reconstruction of Vilnius airport runway concludes; aircraft return to Vilnius

On Thursday, 17 August, Vilnius airport’s runway was festively opened. This was the most massive reconstruction for the airport in the past 20 years. It was a unique project for Lithuania and all of Europe, airport representatives say.

Islamic State terrorist group takes responsibility for Barcelona attack

The recent terrorist attack in Barcelona, in which a shuttle bus rammed a crowd of people on La Rambla, killing 13 and injuring at least 100, has become this week’s topic.

Weather in Latvia to be warm but rainy on weekends

The sun will appear every now and then between clouds on Friday, 18 August. Still, some rain is expected, especially in the afternoon in Latvia’s eastern regions, where thunderstorms may appear. Rain is expected to reach the capital in the afternoon. Wind will draw in from the south. Air temperature will reach +21° C… +26° C, according to State Environment, Geology and Meteorology Centre.

Latvia’s export growth was moderately rapid in the first six months of 2017

Compared with the same period of 2016, Latvia experienced a moderately rapid export growth in the first six months of 2017, according to data published by Eurostat on Thursday, 17 August.

Latvia’s annual inflation in July was one of the highest in Europe

Inflation indexes in Latvia and the UK both reached 2.6% in July, which is one of the highest indexes in the European Union, according to data published by Eurostat on Thursday, 17 August.

Kirsis withdraws his candidacy in favour of Aseradens

Riga City Council member Vilnis Kirsis has decided to withdraw his candidacy from the race to become chairman of Unity in favour of a different candidate – Economy Minister Arvils Aseradens.

Rinkevics expresses Latvia’s interest in maintaining political consultations with Palestine

On Thursday, 17 August, Latvia’s Foreign Affairs Minister Edgars Rinkevics met with the leader of Palestine’s diplomatic mission in Latvia, ambassador Taissir Al Adjouri, to discuss mutual relations between Latvia and Palestine and the peace process in the Middle East.

Putin grins to the world’s seven billionth baby, Lithuania wary of border incidents

Russian President Vladimir Putin paid a visit this Wednesday to Kaliningrad, the westernmost point of Russia, but the reports about his trip in the Russian enclave and over the border in Lithuania were strikingly different.

Survey: red considered the safest colour for a car

Most Latvian drivers consider red to be the safest colour for a car. The most popular, however, is black, according to results of a survey by Virši-A fuel trader.

airBaltic’s number of carried passengers reaches a record in second consecutive month

Latvian airBaltic airline carried 393,312 passengers in July 2017, which is 21% more than the same period last year. The number of passengers carried by airBaltic remains the highest it has ever been in the airline’s history, BNN was informed by the company.

Newest comments