bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 22.08.2017 | Name days: Rudīte, Everts
LatviaLatvia

Economic diary. Exports reach new heights

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn spite of recent geopolitical developments, Latvian producers managed to demonstrate a notable increase in turnover this March: compared to the same period of 2013, export volume increase was 6.1% and reached EUR 855.3 million.

Export growth continues for the second consecutive month this year, as reported by Finance Ministry.

Similar to previous months, the main influence on export growth indexes was provided by food products and agricultural products, as well as wood and its products. On top of that, previous records were beaten by Latvian wood processing industry this March. The industry realized products worth ER 154.2 million, which is nearly EUR 10 million more than the previous achievement.

This March, Latvia sent 11.9% more food products, 25.2% more wood products, 28.7% more construction materials and 18.9% mineral products abroad than it had sent in March 2013.

On the other hand, however, there was a slump in the volume of metal exports: export volume index had reduced 25.8% in March 2014. Experts had previously predicted this outcome. They explain this with the collapse of Liepājas metalurgs. Nevertheless, experts say the effect of this factor will no longer be so severe in the next several months.

Latvia’s balance of foreign trade was disrupted slightly this March: export share had reduced to 44.2% (45.8% in the previous month). Export volume reached a total of EUR 2.3 billion in Q1 2014, which is 2.3% more than that of 2013. Imports declined by 2.6% – down to EUR 2.94 million.

Crisis is no obstacle for business

Data regarding trade relations with Russia and Ukraine require special attention. Indexes show that the negative impact on exporters caused by the conflict in Ukraine was not nearly as dramatic as it was previously expected. In particular, export of goods to Russia was only 1.8% lower in March than it was in the same month of 2013.Q1 2014 demonstrated growth of 4.7%.

Fish processing plants currently experience the biggest problems: marine exports have declined 27% in comparison with Q4 2013. Experts say such a decline is typical as a seasonal sight. It is normal for this sector to decline in Q1.

Another in the list of products at risk is milk and dairy products. Data for Q1 demonstrate much better results for 2014 in comparison with 2013. However, experts explain this with the growth of prices, not growth of volumes. Sales of pharmaceutical products are also on the rise. Exports of textile goods and accessories remained the same in Q1 2014. This March, however, there was a decline of 2%, which was also expected by experts of the industry.

In total, however, exports with Russia reached 9.4%. Imports are said to be 8.7%. Relations with Ukrainian partners are also on the climb – compared with March 2013, exports of Latvian products grew by 22.8% this March.

‘The possible escalation of the Ukrainian crisis remains the highest risk for Latvian exporters, but not as significant as it seemed at the beginning of the conflict. The crisis has entered the phase when actions of involved sides have become lighter. They remain somewhat unpredictable,’ – says DNB bank economist Peteris Strautins.

According to Finance Ministry’s representatives, because export relations with CIS countries are not as bad as it first seemed, the increase of the flow of goods in that direction may be more significant than it was in 2013.

This March, Latvia’s most important export partners were Lithuania (16.1%), Estonia (12.1%), Poland (8.1%) and Germany (6.9%). Latvia’s most important import partners were Lithuania (16.4%), Germany (12.3%) and Estonia (7.8%).

Services have grown more expensive and will continue growing

Latvia’s general price level has grown 0.7%. Prices did not change in the goods segment this April. However, there was a slight increase of prices in the services sector – 2.6%, as it was reported by the Central Statistical Bureau of Latvia.

The biggest increase impact came from the growth of prices of hotel and restaurant services, as well as in the culture and leisure sector. The rise of prices on alcohol and tobacco products also had an impact. A reduction effect was felt following the drop of prices on communications and transport.

According to Swedbank economist Kristille Skruzkalne, price rise caused by the transition to euro in Latvia has become more moderate, growth has been stable these past couple of months. According to preliminary estimates of the European Commission show that price rise remains within acceptable range of 0.2-0.3 percentage points. This allows for the conclusion that inflation effect in Latvia was relatively insignificant and similar to that experienced by other European countries.

According to Finance Ministry’s outlook, further reduction of unemployment and salary growth in Latvia will add a gradual effect on service costs and inflation. The effect will like become apparent no sooner than 2015. This is why the ministry keeps its outlook for annual inflation rather low – 1.1%. In 2015, on the other hand, it is expected that this index will reach 3%.

Analysts note similar trends are noted in practically all EU member states: low but gradually growing inflation with insignificant impact on production prices and services, which is compensated by a drop on non-food products.

Ref: 017.109.109.2112


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