bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Saturday 23.09.2017 | Name days: Vanda, Veneranda, Venija
LatviaLatvia

Economic Diary of Latvia. This year will prove to be worse than anticipated

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUBank of Latvia has reassessed its outlook on the development of the national economy in 2015: it is very likely that economic growth in Latvia will become even slower and will be 2%, which is largely because of geopolitical situation and global economy.

The outlook has been reassessed because there have been no improvements to the geopolitical situation and the region remains under negative economic influence. This includes Latvia.

Lately there have been serious risks that Russia’s economy could decline even more, which would undoubtedly have a negative impact on Latvia’s national economy, because of the decline in demand for Latvian goods and services and reduced development rates of other trade partners of Latvia, as believed by the bank’s analysts.

Current outlooks have been compiled based on the assumption that Russia’s economy will decline by approximately 5% in 2015. Analysts nonetheless warn that the situation is rather dynamic and that it is possible that the recession in Russia may be even more serious than expected.

Furthermore, other factors could have a negative impact on Latvia’s economic development. This includes weaker than expected economic development in Eurozone, weak crediting, low level of trust among entrepreneurs, etc.

Nevertheless, there are also factors that could have a positive effect on economic development in Latvia: recovery of KVV Liepājas metalurgs and the decline of oil prices (the latter would have a positive effect on Latvia and Eurozone).

Micro-enterprises tax to be changed

Saeima has given green light for amendments to the Enterprises Tax Law: deputies of the parliamentary National Economy Committee have conceptually approved the proposal to maintain the current tax rate of 9% of turnover, but only for the first three years for enterprises that pay micro-enterprise tax.

According to this initiative, this rate will be applied to enterprises with annual turnover of EUR 7,000.01 to EUR 100,000. Starting with the fourth years of business activities, the tax rate will be 12% of turnover.

Entrepreneurs have thoroughly criticized the previous amendments, stating that high tax rates would ruin the very concept of micro-tax.

As a result, in response to the outrage from voters, legislators have decided to write new, entrepreneur-friendly legislative amendments. ‘Amendments will allow us to maintain a beneficial tax environment for micro-enterprises and beginner businessmen. It will also allow us to reduce the proportion of shadow economy,’ – as stated in the annotation to the draft.

The idea of limitations for 9% tax rate was positively accepted in Finance Ministry. Minister Janis Reirs has noted that the state should give entrepreneurs the opportunity to test their skills and only join the established tax-paying order in the event of financial success.

The draft is to be reviewed by the parliament in three readings.

All the best for families with children

Citadele Bank and ALTUM financial development institution have signed an agreement document regarding state support programme aimed to assist families in efforts to acquire housing.

As part of this programme, young families with children will be able to receive mortgage loans in Citadele Bank concessional terms with a reduced down payment.

The maximum amount of financial support depends on the number of children in a family:

-if a family has one child, the amount of support will be 10% of the loan, but no more than EUR 10,000;

-if a family has two children, assistance will be equal to 15% of the loan, but no more than EUR 15,000;

-if a family has three of more children, assistance will be equal to 20% of the loan, but no more than EUR 20,000.

The size of the first instalment will also depend on the number of children. Families with three or more children will be able to receive mortgage loans with the first instalment of 5% (10% for families with two children and 15% for families with one child).

«As part of the state programme, families with children will be able to receive mortgage loans with significantly reduced first instalments and bank funding of up to 95% of property value,» – says head of Citadele Bank’s Private Lending Office Baiba Tetina.

According to the representative of the bank, current mortgage offers provide for first instalments of no less than 25% of property value. This means that a family would need to pay a first instalment of EUR 15,000 in order to buy an apartment worth EUR 60,000.

«Unfortunately, purchasing power of Latvian families that have children is not high enough to afford such a large first instalment and pay rent at the same time,» – concludes Tetina.

Initial funding of the programme is EUR 332,678, which will allow the state to issue guarantees worth a total of EUR 1.33 million.

Latvian ports increase their cargo turnover

In spite of the intense geopolitical situation in 2014, Latvian ports managed to transship 74.176 million tons of cargoes – 5.2% more than in 2013, as reported by Transport Ministry.

Riga Freeport was the most active in increasing its cargo turnover – its results reached 41.081 million tons at the end of 2014 (+15.8% since 2013).

Liepaja Freeport’s turnover had increased by 9.5% (5.3 million tons) in 2014.

Ventspils Freeport, on the other hand, had experienced a decline of cargo turnover: annual turnover declined by 8.9%, down to 26.206 million tons.

Among the five small Latvian ports, the largest turnover of 2014 was noted in Skulte – 742.4 thousand tons (+8.6%), followed by Mersrags – 483.6 thousand (+23.4%) and Salacgriva – 332.4 thousand tons (+12.9%).

Ref: 017.109.109.6373


Leave a reply

Kariņš: Unity started drifting when Valdis Dombrovskis left is management

Unity should seriously consider the option of starting in Saeima elections alongside other parties, said MEP Krišjānis Kariņš in an interview to Latvijas Radio.

CSP: average size of agricultural areas increases in Latvia

In 2016 the average size of agricultural holding constituted 43.2 ha, which is 15.5 % more than in 2013 when the average land area per holding accounted for 37.4 ha. The total standard output has risen by 24.5 %. Nevertheless, the number of economically active farms has reduced by 14.5 %.

Antāne forms a new political party in Ventspils with more than 350 associates

A new political party was founded in Ventspils this Thursday, 21 September. The name of this new party is Laiks Pārmaiņām (Time for Changes). The initiator of the founding of this new party is Baltic Association – Transport and Logistics President Inga Antāne.

NATO: suspicions about Zapad 2017 were justified

NATO views its suspicions about Russian-Belarusian Zapad 2017 military exercises as well-justified, because their scale and geography were larger than what was officially stated.

Expert: Latvia’s electronic industry productivity index on a rise

Electronics industry is the most rapidly growing processing industry in Latvia. This industry’s turnover growth in Latvia has been more rapid than that of Europe and the rest of Baltic States, says manager of wholesale trade company Lemona Latvija Sergejs Nikiforovs.

Video: How to make white-water rafting more dangerous?

If you think white-water rafting is a piece of cake, you can try getting over some rapids on six rafts.

Kaimiņš: Lembergs is Latvia’s biggest misfortune

It is no secret to anyone that the parliamentary committee in charge of investigating Oligarch case has so-called experts that are closely associated with infamous Ventspils politician Aivars Lembergs or his family. In an interview to BNN, Saeima member Artuss Kaimiņš shared his opinion about the latest scandalous development associated with Oligarch talks. He calls Lembergs Latvia’s biggest misfortune.

EC: Money for Rail Baltica in next period will be negotiated

Funding of the Rail Baltica railway project after the year 2020 will be negotiated upon as part of the EU's financial plan for the next period, has stated the European Commissioner for Mobility and Transport.

Sudraba published «false information» on parliamentary committee’s website

Parliamentarian Andrejs Judins asks to evaluate Inguna Sudraba’s possible breach of ethics with the publication of ‘false information’ on the website of Saeima’s parliamentary investigation committee responsible for the investigation of oligarch case.

Estonia plans to direct 300 million euros to healthcare

With the aim of improving the quality and access to Estonian healthcare, the country's government has backed amendments, which set forth increasing healthcare funding by 300 million over a period of five years

HTC agrees to sell part of its innovators and intellectual property to Google

U.S. computer technology firm Google has reached a deal with Taiwanese smartphone-maker HTC so that the latter would share part of its product development team and allow using HTC intellectual property.

22-year sentence for Imanta paedophile comes into force

With the Supreme Court of Justice abandoning the review of Riga Regional Court’s ruling, the 22-year sentence for the man prosecuted in the so-called Imanta paedophile case has come into force, as reported by the court.

Weekend in Latvia expected to be warm and sunny

The sky in Latvia will become clear during the day on Friday, 22 September. Rain is only expected to come to certain western areas. Air temperature will likely reach +16° C… +20° C, whereas air temperature at night will drop to +9° C… +14° C, as reported by State Environment, Geology and Meteorology Centre.

UK to offer EU 20 billion euros, if it can remain in single market

British Prime Minister Theresa May plans to offer a transitional agreement with the European Union that would concern a two-year period until the country leaves the bloc in 2019.

Number of bankruptcies down in Latvia and Estonia but up in Lithuania

Last year, the number of bankruptcies declined 12.4% in Latvia and 10.9% in Estonia. Lithuania, on the other hand, had experienced a 35.2% increase in the number of bankrupt companies, according to information compiled by Coface.

Lithuania sets off alarm bells over quality of international brands' foods

What Lithuania‘s State Food and Veterinary service announced last Tuesday was big news in Lithuania, but not so of a discovery to the majority of Eastern European consumers - food of international brands sold in Western Europe and in Eastern Europe, and Lithuania, are not just the same.

Saeima forms a group to support HIV and tuberculosis patients

On Thursday, 21 September, Latvia’s Saeima agreed with deputy Hosams Abu Meri’s proposal to form a deputy group to support HIV and tuberculosis patients, as confirmed by Abu Meri’s assistant Edgars Ikstens.

Politologist comments whether Vējoņis’ authority is at risk or not

Saeima’s vote in which Latvian President Raimonds Vējoņis’ proposal on the status of non-citizens’ children was not pushed forward was as though a strike against the president’s authority, comments Filips Rajevskis.

In pictures: Mexicans rush to find quake survivors

A massive rescue effort is continuing in Mexico City and other areas in Mexico to find possible survivors caught under buildings that collapsed in the September 19 earthquake, which has killed no less than 237 people.

Producer prices in industry grew 0.1% in August

Compared to July, the level of producer prices in Latvian industry rose by 0.1 % in August 2017. Prices of products sold on the domestic market, as well as those of exported products grew by 0.1 %.

Saeima supports simplification of investigation of less serious crimes

On Thursday, 21 September, Latvia’s Saeima conceptually supported changes to the Criminal Process Law that provide for simplification of investigation procedures of less serious crimes.

Ozoliņš: transit and logistics industries should communicate more actively

Mutual communication and information exchange among businesses working in the industry is the pre-condition for improvement of Latvia’s transit industry, said Transport Ministry’s state secretary Kaspars Ozoliņš at a meeting of the Logistics Council.

As Estonia mends ID cyber vulnerability, officials recommended mobile ID

As Estonia tries to solve potential security risks found in the chips of 750,000 national ID cards, state officials using e-services have been recommended to Mobile-ID in addition to ID cards.

Vējonis: peaceful resolution of Ukraine’s conflict is Latvia’s priority

«Russia’s unjustified aggression towards its neighbours is a serious breach of international law. Any aggressor who begins and continues such conflicts should be brought to justice for breach of international law,» says Latvian President Raimonds Vējonis.

Authorities apprehend criminal group that caused 1.7 million euros worth of damage to the state

Latvian State Revenue Service’s Finance Police in cooperation with State Police anti-terrorism unit Omega neutralized a criminal group that specialized in VAT fraud and money laundering, as confirmed by SRS representative Evita Teice-Mamaja.

Newest comments