Latviski English По-русски
Ceturtdiena 22.03.2018 | Name days: Tamāra, Dziedra

EC: Europe's economy keeps recovering amid new risks

(0 rating, 2 votes)

It is expected EU’s gradual recovery will only gather strength and future outlook for 2011 now seems to be better than predicted in autumn, European Commission representative in Latvia Kaspars Kreics told the business news portal BNN.

It is forecast GDP will grow about 1.75% this year and nearly 2% in 2012 amid more bright global economy prospects and growing optimism in the European business environment.

This year’s inflation is forecast to increase 3% in EU and 2.5% in eurozone, dropping down to 2% and 1.75% in 2012, respectively. It is expected market conditions will improve gradually. Unemployment is forecast to shrink about 0.5 percentage points and exceed 9% in EU and 9.75% in eurozone. There will be growing fiscal consolidation, moreover, structural reforms must be carried out most strictly, as they help create new jobs and boost national economies competitiveness, he says.

EU economic recovery will continue, despite the ongoing problems in the financial markets and complex external conditions. The recovery is gathering pace and it is forecast it will be ongoing all through 2011, as forecast in the autumn of 2010. Similarly, it is also predicted investments in production facilities will grow, while dropping in construction.

It is expected private consumption in EU will climb this year and the labour market conditions will add to the strength of it, as they are gradually improving. However, higher inflation has to a certain extent slowed down the pace of it, as opposed to the forecasts expressed in autumn. Moreover, it is also forecast in a short-term capital and consumption will still be affected by shrinking liabilities of cooperative and household sector.

As usually, during recovery periods from deep recessions, it is expected EU recovery will be less remarkable than in the previous two economic upturns despite gaining strengthen along with stabilizing domestic demand.

This year’s GDP is predicted to expand more than 1.5% in eurozone and 1.75% in EU up to about 2% in both eurozone and EU in 2012. Moreover, 2011 is showing better performance that forecast in the autumn of 2010.

Measures in the member states

The overall picture does not show well enough the significant differences in the member states’ recovery. To large extent the activity has resumed in some countries, particularly in Germany, as well as in smaller, export-oriented states, while others, especially some of the EU periphery countries are lagging behind. It is expected that further on the recovery pace will differ throughout the EU.

It is awaited in the forecast period the correction of the EU internal imbalances will continue. The impact of the alignment is most felt by countries with large budget deficit at the start of the crisis, mainly caused by the consumption drop. However, a number of structurally large current account surpluses, seem to gradually decrease, in light of higher domestic demand and dynamic import.

Also, the situation varies on the European labour market. The unemployment rate ranges from 4-5% in the Netherlands and Austria to 17-21% in Spain and the Baltic States. Employment in the EU has slightly increased in the last quarter of 2010 due to the improvement in all sectors, except manufacturing and construction. Considering the usual delay between the production output and employment growth, it is projected that the EU and the eurozone’s employment will rise moderately this year. It is expected that the unemployment in the eurozone and the EU will decline by about ½ percentage points. However, despite the situation has somewhat improved since last autumn, it is still expected that the economic recovery will go hand in hand with relatively high unemployment rates.

Last year, the public sector finances started to improve. In view of a more rapid growth and the temporary halt of improvement measures, it is predicted that the EU general government budget deficit will reduce from around 6 ½% of GDP in 2010 to around 4 ¾% of GDP in 2011, further dropping to 3 ¾% of GDP in 2012 along with similar trends, but a slightly lower deficit in the eurozone. These figures are slightly better than forecast in autumn. Both the EU and the eurozone’s budget deficit reduction is mainly achieved by spending cuts. Contrary to the budget deficit, the debt ratio will keep rising in the forecast period, amounting to approximately 83% of the EU GDP and 88% of the eurozone’s GDP by 2012.

Leave a reply

Farmers in Latvia dissatisfied with resolution of electricity-related problems

Two months have passed since farmers in Latvia had received unjustifiably large electricity bills. Countless meetings and discussions have taken place in those two months. Unfortunately, no decisive measures have been undertaken to resolve the problem. Farmers are confused with decision-makers’ incisiveness in a matter important to the national economy, as noted by the Farmers’ Saeima.

Life after 25 May: is this the end for free publication of photo galleries from events?

Many of us like to check out photos from concerts, conferences or sport events on gallery portals and social networks to have a look at guests of those events. However, after 25 May, when General Data Protection Regulation (GDPR) comes into force, the situation will no longer be the same.

Saeima to establish legal framework for Baltic cooperation in disaster prevention

On Thursday, 22 March, Latvian Saeima supported a legislative draft, ratification of which will help create legal framework with other Baltic States in prevention of disasters, as reported by the parliament’s press-service.

Number of complaints with postal services on a rise in Latvia

Public Utilities Commission has compiled information about complaints submitted by residents in regards to postal services in 2017. The number of complaints has increased alongside opposing views about package terminals – the regulator has received 37 complaints in total.

Output of livestock products in Latvia increased in 2017

Compared to 2016, output of meat grew by 4.6 % and output of milk by 1.4 % in 2017. In 2017, in Latvia 91.2 thousand tonnes of meat were produced, which is 4.0 thousand tonnes or 4.6 % more than in 2016. The most significant increase was observed in the output of poultry (of 11.3 %) and pork (4.7 %).

Turkey's offensive in Syria condemned by NATO ally Germany

Angela Merkel, the head of the German federal government has stated that Turkey’s military offensive in the northern Syrian town of Afrin was unacceptable and she blamed Russia for simply watching, while attacks by Syrian government forces on besieged eastern Ghouta continue.

Finance minister still believes tax reform in Latvia has brought results

«The tax reform has given us the results we had expected, especially in regards to combating envelope wages,» said Latvia’s Finance Minister Dana Reizniece-Ozola in an interview to 900 seconds programme of LNT.

Planned hospital reorganisation in Lithuanian regions irks both mayors and patients

If the plan of the Lithuanian Ministry of Health to overhaul treatment services in the provinces does not hit a snag, the rural hospitals will be soon providing only essential care and nursing, the focus will be on out-patient care and treatment will be available only in larger county hospitals.

Ventspils beach high in popularity this week; Lembergs gets spotlight time as well

Ventspils ended up in the spotlight in an unusual way this week: seals washed up on the beach there. Animal Freedom emphasizes that human contact with baby seals would hurt them. Residents are asked to maintain at least 50 m distance from them. However, the suspended Mayor of Ventspils Aivars Lembergs decided to take photos with baby seals and publish them on his Facebook profile.

Ombudsman: problems in nursing homes and social care centres are associated with lack of funding

Problems in nursing homes and social care centres are largely associated with lack of funding, because it is not possible to perform high-quality work using currently available resources. This is the responsibility of ministries and the government, as ombudsman Juris Jansons mentioned in an interview to Latvijas Radio.

Estonian music authors receive record royalties for 2017

The organisation, which is tasked by collecting royalties for local and foreign music in Estonia, the Estonian Authors' Society, has received six million euros in royalties in 2017, which is its record level.

Facebook sorry for permitting exploitation of 50 million user data in politics

Facebook CEO Mark Zuckerberg has apologised for the social network failing to ensure enough privacy to its users that allowed for data on about 50 million of its users to abused by a political consultancy firm.

Zhdanok’s replacement to promote non-citizen matter in European Parliament

Miroslavs Mitrofanovs, who has taken Tatyana Zhdanok’s place in the European Parliament, plans to promote the matter of non-citizens in the institution.

Riga City Council committee supports increasing municipalities’ expenditures by 42.38 mln euro

Following an initiative from the Financial Department, the outlook for the municipality’s base budget revenue has been increased by EUR 1.66 million for 2018. The expenditures portion of the budget is planned to be increased by EUR 42.377 million, as reported by Riga City Council.

French ex-President named suspect in Libya funding case

In France, its ex-President Nicolas Sarkozy has been named as a suspect in the formal investigation for alleged illicit campaign financing, misappropriation of public funds of Libya and passive corruption.

Finance sector’s development council supports prohibition of shell companies

On Wednesday, 21 March, Latvian Prime Minister Māris Kučinskis’ managed Finance Sector’s Development Council supported initiative on prohibiting shell companies, as confirmed by the prime minister.

Level of producer prices in Latvia’s industry is up 3.4%

Compared to January, level of producer prices in the Latvian industry rose by 0.5 % in February 2018. Prices of products sold on the domestic market grew by 0.7 %, but prices of exported products went up by 0.3 %.

Minister: Latvia is far behind its neighbours in terms of digitization and e-skills

In terms of digitization and e-skills, Latvia is far behind its neighbouring countries and the rest of Europe, said Latvian Economy Minister Arvils Ašeradens in an interview to Latvijas Radio.

OECD: Latvian employees work longest hours in Baltics

In a comparison of Baltic countries per average annual hours worked, the Organisation for Economic Cooperation and Development has found earlier this year that the average Latvian worker spends 1,910 hours at work, followed by the Lithuanian employee with 1,885 hours and the average Estonian worker with 1,855 hours.

12th Saeima failed to complete half of its pre-election promises in field of justice

In 2014, Delna – society for openness and Providus think tank received support from all parties represented in the 12th Saeima in regards to an action plan to help strengthen the rule of law in the country.

Russia carries out military drills in Gulf of Finland

Russian Defence Ministry has stated that in the Baltic Sea Gulf of Finland, which has Finland, Russia and Estonia in its coastline, the Russian military has performed drills for its tactical special operations units.

Prime minister doubts Anti-Money Laundering Service head’s competence

«The work performed by the service requires drastic changes. Whether or not it can be done by its current head [Viesturs Burkāns], I am not sure,» said Latvian Prime Minister Māris Kučinskis in an interview to LNT, commenting on the work performed by Latvian Anti-Money Laundering Service.

Vilnius chosen for office of game developer Lockwood Publishing from UK

UK's mobile game developer Lockwood Publishing has unveiled plans to open its first overseas office in Vilnius, pointing to the industry's talent in Lithuania and the wider region.

Association: municipalities should organize their work on their own

On 6 March, Latvian Association of Local and Regional Governments reviewed the letter sent to Riga City Council by Environment Protection and Regional Development Ministry, in which the institution ordered the municipality to review their internal order and lift restrictions on the length of debates and the number of questions deputies are allowed to ask.

Canada moves to increase gun control

Canada's federal federal government has proposed new gun control measures, but they could reduce support to the ruling Liberal Party in rural areas, where guns are widely owned and used.