bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 23.10.2017 | Name days: Daina, Dainida, Dainis
LatviaLatvia

Economic Diary of Latvia. Towards 2020

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

The Ministry of Economy believes that the Latvian National Development Plan 2012 – 2020 should include specific measures for export and innovation. This week, we learnt what exactly it has in mind.

Towards 2020

According to Evita Urpena, spokeswoman of the Ministry of Economy, officials want to focus on economic productivity, export, industrial growth and more efficient use of regional advantages.

At present, what hinders work in the mentioned directions is the lack of investments in small businesses and innovation projects. There is also a discrepancy between supply and demand in the labour market. Neither is the infrastructure working in favour of production. However, mechanisms available at the European Structural Funds are supposed to sort out the issues.

To encourage innovations, the Ministry of Economy suggests creating competency centers, as well as funding development of new products and technologies. It is also set to offer its support for “green” initiatives in the manufacturing sector and cut the red tape.

The Ministry plans to boost export by increasing efficiency of Latvian diplomatic missions abroad and carrying out cluster projects. It also pledges to lend “a financial hand” to those trying to conquer foreign markets. It is intended to solve the infrastructure issue by creating regional industrial hubs, with an aim to attract investments in the manufacturing industry.

The first version of the National Development Plan included a number of economic development incentives. Among other things, the document singled out the need to introduce zero income tax on corporate profits, if they are reinvested in modernization, acquisition of equipment, export, export-oriented research and product development.

The plan also suggests making use of the tax policy and other tools to boost municipalities’ motivation to attract local investments in manufacturing and service industries.

What to teach?

Basics of Economics could become a compulsory subject in schools, this was concluded by the Financial and Capital Market Commission after holding a discussion on education. Currently, the public knowledge about economic matters is quite superficial. Participants of the discussion agreed that the basics of economics should be taught not only to students but also adults.

“It is indeed important to understand economic processes. If the public had had an understanding of the account balance, the credit boom, economic overheating and zero budget, we would have never experienced the crisis backwash we are facing now. Schools do not teach all that. Back in 1997, economics was a compulsory subject,” says Ilmars Rimsevics, Bank of Latvia President.

Ryanair prefers Vilnius

This autumn, Europe’s largest budget airline – Irish Ryanair – is set to alter its route network in the Baltic countries. In terms of Ryanair flights, Lithuania’s capital Vilnius is similar to Riga, while Tallinn will be deprived of two-thirds of flights starting from September 7. Starting from October, the airline will start gradually cutting the number of flights to the Estonian capital. During the winter season, Tallinn will be left only with flights to London, Milan and Oslo. According to Estonian media, Tallinn will lose connections with six cities.

In Riga, Ryanair operates flights to 13 destinations, being the second largest air carrier. Last year, it handled 19.8% of the total passenger traffic, carrying 1.5 million people.

According to Ryanair, starting from November 7, it will move five routes from Kaunas to Vilnius. In terms of population, Vilnius is almost two times greater than Kaunas. Besides, the distance from Vilnius to the Polish border cities is only slightly bigger than from Kaunas. During the winter season, Vilnius will serve 14 Ryanair routes.

Ryanair is now handling about 11% of the total passenger traffic. By increasing the number of destinations, this figure will reach 17%, carrying up to 200 thousand passengers a year,” says Sandra Siauliene, spokeswoman of Vilnius airport.

Rapidly growing GDP

In Q2 2012, Latvian GDP expanded 5%, compared to the same period a year earlier. If comparing to the eurozone member states or its neighbours, the performance is great. In many ways, it was the domestic demand that contributed to the growth. The main drivers of the Latvian GDP are: manufacturing, construction, trade and transport. All the sectors have provided equal contribution in forming four-fifths of the Latvian economic growth.

Experts also praise progress in the sector of information and communication services, which come right after the mentioned fields. Also the sectors of agriculture, forestry and water management are showing remarkable growth.

In Q1 2012, the GDP grew 5,9%, compared to the same period a year ago. Compared to other Baltic states, the performance is impressive. Analysts point out that export plays a bigger role in the Lithuanian and Estonian GDP growth. Accordingly, they will immediately feel dropping demand in foreign markets. Latvia has managed to get ahead of its neighbouring countries thanks to growing domestic demand.

According to Peteris Strautins, DNB Bank chief economist, Latvian economic growth will soon slow down. However, the decline will be smooth, he says.

Ref: 102.105.105.2491


Leave a reply

  1. JPR says:

    Latvia is comming along but things will take time

    Thumb up 0 Thumb down 0

Another person may be involved in NSL and ZZS illegal financing case

Corruption Prevention and Combating Bureau’s launched criminal process regarding possible illegal financing of parties To Latvia from the Heart and Union of Greens and Farmers has identified another involved person.

Mortality from strokes in Latvia may grow significantly in the near future

To raise awareness of the dramatic situation with strokes in Latvia and motivate decision-makers into improving stroke prevention measures and treatment and increasing funding for this area, cardiologists and neurologists invite officials to come to a discussion.

Pavļuts: party unions would be welcome, but not for politically technical reasons

In preparation for Saeima elections, unions should be considered by parties that have similar goals, not politically technical considerations, said Kustība Par leader Daniels Pavļuts in an interview to Rīta panorama programme.

Minister: changes in Russian schools needed for formation of unified political nation

Latvia requires a unified political nation, which is impossible to achieve living in different education spaces. With that, it is only natural for the process to progress towards our youth studying together, Latvian Education Minister Kārlis Šadurskis told Rīta panorama programme about the intended education reforms in Russian-speaking schools.

Czech election won by party of police-sought billionaire Babiš

In the parliamentary election of the Czech Republic, which took place over the weekend, centrist party ANO has won. It is chaired by billionaire Andrej Babiš, who has been stripped of the immunity of a member of parliament over suspected wrongdoing in attracting European Union farming subsidies.

Rīgas satiksme limits competition; agreements prevent ‘others’ from entering the market

Competition Council believes Rīgas satiksme’s contracts with private companies limit competition, because they prevent other players from entering the market, as reported by De Facto programme of LTV.

Weather will be clear and dry in Latvia at first; set to change in second half of the week

On Monday and Tuesday weather will be dictated by increased atmospheric pressure – weather will remain clear and dry. Wind will draw in from the east and south-east, which will be strong along the coast in Kurzeme, as reported by Environment, Geology and Meteorology Centre.

Spain denies effort to strip Catalonia of autonomy amount to coup

The Foreign Minister of Spain, Alfonso Dastis, has dismissed claims that the effort of the central government to introduce direct rule in the separatist region of Catalonia can be considered as a coup d'état as it is seen in Barcelona.

TM: the ministry is open for a full disposal of state-owned airBaltic shares

Latvian Transport Ministry is currently engaged in reviewing specific offers for attraction of investors for airBaltic. A full privatization of the company is not out of the question, says the ministry’s state secretary Kaspars Ozoliņš.

Week in Lithuania. Election watchdog’s decision puts budget grants for Liberals in question

A total of 45,336 euros in the costs of the training organised by an Institute of Applied Politics owned by Sarunas Gustainis, a former MP and former member of the Liberal Movement, for the party should be recognised as non-monetary contribution, says a task force established by the Lithuanian Central Electoral Commission.

BNN summary of the week: birth and death rates in Latvia turn out shocking. Gambling halls to close down

BNN offers a summary of this week’s topical news in a variety of categories: Fight; Truth; Business; Future.

Professor: by taking money away from science, the state shoots itself in the foot

The matter regarding insufficient funding for science has recently become more topical in the public space. President of Latvian Academy of Sciences Ojārs Spārītis is rather critical of the situation: Latvia has lied to the European Union and European Commission about making sure that funding for science reaches 1.5% of GDP by 2020.

To prevent fraud, audit of MPC recipients to be performed in Latvia

Latvian Economy Ministry intends to perform an audit of mandatory procurement component recipients and use new regulations to combat fraudulent activities, as confirmed by Economy Minister Arvils Ašeradens.

Rail Baltic procurements to be processed using Electronic Procurements System

Following the changes to Latvian Republic’s Public Procurements Law, all new procurements for Rail Baltica administered by RB RAIL will be processed using a free electronic information system and its e-contest subsystem.

Estonian construction price index pushed up by wages

The construction price index in Estonia has in July-September of 2017 increased by 0.9% in comparison to second quarter this year and by 1.7% from July-September of 2016, Estonian statisticians have estimated.

Surplus of Latvia’s government budget reached 9.5 million euros in 2016

In 2016 general government budget surplus accounted for EUR 9.5 million or 0.04 % of the Gross Domestic Product, whereas general government consolidated gross debt amounted to EUR 10 091.6 million or 40.6 % of the GDP.

Latvia to invest EUR 5.9 million into formation of unified port network

Ports of Riga planning region and Kurzeme planning region have commenced an important tourism project. The goal of this project is creating a unified yacht port network in Latvia and Estonia with quality services that would allow developing sailing tourism and attract foreign sailing enthusiasts in the future, reports the regions’ representative Inese Ozoliņa.

Graft-suspected Tartu deputy mayors resign

In Estonia's second largest city, Tartu, Deputy Mayors Artjom Suvorov and Valvo Semilarski have stepped down from office, Estonian press reported, after the politicians were arrested under suspicion of graft.

Expert: workers of Latvia’s NGO sector have high ‘burnout’ risk

Workers of Latvia’s NGO sector have a high burnout risk, said once the director of Providus Dace Akule in an interview to Latvijas Radio.

Producer: many young people come to work in the film industry

Latvia’s film industry has been steadily growing these past several years, and it is especially gratifying that many young people are coming to work in the industry, says director and producer, representative of Film Angels Productions Jānis Kalējs.

Pollution blamed for every sixth premature death globally

Nine million premature deaths globally in 2015 are said to be related to pollution, a study has found pointing to presence of harmful matter in air, water and workplace as the three main risk factors.

Infectologist: influenza kills biologically the weakest, including children and pregnant women

Influenza is an infection that affects both children and adults. However, it kills those who are biologically weak, says Immunization State Council chairperson and infectologist of Children’s Vaccination Centre Dace Zavadska.

Investor activity made easier between Latvia and Vietnam

An intergovernmental agreement has been signed between the Republic of Latvia and Socialist Republic of Vietnam on prevention of double taxation and tax avoidance in relation to income tax.

Colder masses of air to enter Latvia in coming days; precipitation to be limited

Although high atmospheric pressure will be present above Latvia in the coming days, southern regions in Latvia will experience short-term precipitation on Saturday, 12 October, caused by the cyclone active above Poland. Colder masses of air will enter Latvia in the coming days.

Maltese journalist said to be killed by remotely-controlled explosive

Officials in Malta have unveiled it is assumed that investigative journalist Daphne Caruana Galizia was murdered by an explosive places under her car, which was detonated remotely.