bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 20.08.2017 | Name days: Bernhards, Boriss
LatviaLatvia

Economic Diary of Latvia. Exporters set a historic record

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn spite of the prolonged political conflict and unstable external economic environment, exports of Latvian goods demonstrated the most rapid climb since 2011. In addition, the value of exported goods has exceeded EUR 1 billion, reports Finance Ministry.

Foreign trade turnover has increased 6.7% this October, demonstrating export growth of 15.3% and import reduction of 0.2%. In actual figures export growth reached EUR 1.053 billion and that of import – EUR 1.135 billion.

Electrical equipment and appliances sector demonstrated a significant increase – 29.9%. This was mostly provided by exports of telephones (simultaneous increase of imports in this position demonstrates the growth of re-export). The alcoholic and non-alcoholic drinks segment demonstrated export growth of 41.8%. Because of good harvest this year, exports of grains from Latvia increased by 28.6%.

Observers note that exports have increased to and from CIS countries.

What is surprising is the fact that export of products to Russia has increased 7.8% in spite of the embargo and decline of the value of the Russian rouble.

The end result was mostly influenced by export growth of strong alcohol. Russia remains Latvia’s second most valuable partners. With a market proportion of 11.9%, it is second only to Lithuania.

Exports of products under embargo in Russia continue to decline. Compared to the same period of last year, exports of fish products declined by 40% in October; exports of dairy products declined by roughly a quarter.

Transit is one of the key positions of Latvia’s exports, and Russia remains the main partner in this area.

Frightening predictions from auditors

If the transit of Russian products ceases in Latvia, the country’s railway industry will lose 43.7 million tons of cargoes, as noted in the survey carried out by EY. As comparison: Latvijas dzelzceļš plans this year’s cargo turnover at 45 million tons.

Results of the survey were presented to members of Latvian Transit Business Association on December 9th. In the event of the worst case scenario, Latvian enterprises would lose turnover worth EUR 1.3 billion, the country’s GDP would decline 1.7%, employment would decline by 1.1% and tax revenue would decline by 2.4%.

Experts have also calculated losses should Russia cease transit of oil and oil products – Latvia would lose 18.8 million tons of cargoes and turnover of enterprises would decline by EUR 803.8 million. The impact on GDP would be equal to 1.1%, on employment – 1% and on tax revenue – 1.5%.

Head of Latvijas dzelzceļš Ugis Magonis admits the severity of this perspective and criticized Latvian Foreign Minister Edgars Rinkevics for ‘unreasonable policy’, including the sudden decisions to add several Russian citizens to the list of personae non gratae of Latvia and the agreement to join sanctions imposed by USA and the EU on Russia’s oil industry.

According to Magonis, LD plans to conclude 2014 with turnover of 45 million tons. The company plans to cease all of its sponsoring programmes in culture and sports.

Discounts to help attract Belarus

A memorandum has been signed with Belarus in regard to the increase of exports of oil products from Belarus through Latvian ports, as reported by Latvian Transport Ministry.

According to the document signed in Minsk, Belarus plans to increase exports of its oil products using Latvia’s railway infrastructure and Riga Freeport. Businessmen from Belarus will also take part in the development of the oil-handling terminal in Riga, as reported by the ministry.

In order to contribute to the development of long-term relations with neighbours, Latvijas dzelzceļš promises to maintain or even reduce transport costs in the next 3 to 5 years.

According to the former Transport Minister of Latvia Aivis Ronis, who led the talks in Minsk, this means several million tons of cargoes in possibly ten years. According to Ronis, it is planned to increase the volume of exports of other products from Belarus in the future.

Food product prices to reduce

Reduction of prices is caused by the decline of prices on oil and the largest global stores of grains in this century, believes Director of Agricultural Market Promotion Centre Inguna Gulbe.

‘If there are no changes to the geopolitical situation, climate and healthcare, prices may reduce even more in the beginning of next year. Prices have reduced quite significantly on the main production resources – fuel and grains. This means meat products and eggs can be produced even cheaper. If prices at which farmers sell their products reduce, so should the prices at which we buy these products,’ – said Gulbe during a press-conference.

At the same time the expert noted that the decline of prices on milk was caused by increase in supply, which came to be even before the adoption of the Russian embargo. The last factor only made the situation worse. Meanwhile, the domestic market shows a decline of consumption of dairy products. It is likely that milk procurement prices will continue to decline next year as well. The same applies to meat.

Nothing shows that global prices on grains could increase, believes Gulbe. Growth of harvests and decline of demand are two of the main deciding factors for the market: stores have reached their maximum capacity in the past fifteen years. As a result, he average grain procurement price in Latvia has declined by 18% in the past ten months.

According to farmers, price outlooks for food products are viewed as negative. The industry has tough times ahead of itself, adds Gulbe.

Ref: 017.109.109.5373


Leave a reply

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.

Brivais vilnis: nearly all fish processing companies are experiencing losses

Currently nearly all fish processing companies in Latvia are experiencing major or minor losses, says Brivais vilnis chairman Arnols Babris.

American helicopters to perform low-altitude flights within Latvia’s airspace

U.S. Air Force Brigade’s Task Force Phoenix helicopters, which are stationed in Latvia as part of Atlantic Resolve operation, will be performing low-altitude flights from 16:00 to 18:00 from Lielvarde to Dobele on Friday, 18 August.

Healthcare Ministry’s state secretary Karlis Ketners may be replaced

Latvian Healthcare Ministry may replace its state secretary Karlis Ketners. It is possible he will be transferred to work at Finance Ministry, as reported by LTV.

Suspects in Europe's insecticide egg scandal before Dutch court

In the Netherlands, two men have been in court in relation to the scandal of eggs containing banned insecticide that has caused an EU-wide health scare and cost millions of euros of damages.

Indian national with fake documents apprehended on Latvian border

An Indian citizen travelling from Moscow on a bus was caught at Terehovo border control point in Latvia for presenting officers a fake EU family member’s resident card. No criminal process was launched. The person returned to the country he was travelling from.

Latvijas dzelzceļš will not have to pay dividends from last year’s profits

The government decided on Wednesday, 16 August, that Latvijas dzelzceļš will not have to pay dividends from last year’s profits, which were EUR 880,998.

Latvian citizenship provided to 103 people

The Cabinet of Ministers has issued an order to provide Latvian citizenship to 103 people through naturalization.

Estonian Inbank's profits reach EUR 5.7 million in six months

Estonian financial services' provided Inbank made a profit of 5.7 million euros in the first half of 2017, which is a 429.4% increase compared to the respective period in 2016.

Agriculture Ministry invites residents to sign up for measures to support fisheries

From 21 August onward, Rural Support Service plans to start accepting applications for projects to receive support from European Maritime and Fisheries Fund’s action plan for development of fisheries in 2014-2020 as part of projects Innovation, Productive Investments in Aquaculture and Fishing and Aquaculture project processing.

Newest comments