bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 29.06.2017 | Name days: Paulis, Pauls, Pāvils, Pēteris
LatviaLatvia

Economic Diary of Latvia. Just stay calm!

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUEven though one of the most important events for Latvia took place abroad, it will have serious implications for the country. Eccentric millionaire Donald Trump was elected as president of USA, an important partner for Latvia in economic and defence matters.

Latvia is prepared to work with the administration of any U.S. president chosen by the American people, as Latvia’s Foreign Affairs Minister Edgars Rinkevics announced shortly after Trump’s victory announcement. He also urged residents not to panic over the results of the elections in USA. Previously, Latvian officials voiced their concerns about Trump’s possible victory in presidential elections in USA.

Unfortunately, concerns did not disappear after Rinkevics’s request. For example, Swedbank senior economist Martins Kazaks said GDP of Baltic States will continue to grow after Trump’s victory. He added growth will be slower than expected. It is also likely that rapid growth of investments will likely be put off for a time.

Kazaks explained the reason for uncertainty with the lack of understanding of Trump’s political initiatives, as during his election campaign he voiced many controversial opinions and proposals. This is why the reaction of financial markets was nervous.

Nevertheless, nervousness will soon fade, Kazaks said. It is likely, however, that high risk of rapid fluctuations will remains for a long time, as it is unknown what Trump has in store for global economic relations and security policy.

Uncertainty and obstacles have a negative influence on small economies like the Baltics, said Kazaks.

He noted that populism is expected to rise in Baltics and Latvia. On top of that, a populist party had won elections in Lithuania this October.

Regardless, said the economist, there are no reasons to expect radical changes for economic and foreign policies. Latvia remains part of the EU, Eurozone and NATO. Political stability in Latvia will largely depend on EU’s ability to deal with current challenges, Kazaks added.

Politologist Andris Spruds is more categorical in his opinion. According to him, the unpredictable nature of the new president in USA could motivate European countries to ask Russia for support. The unity of the Trans-Atlantic community is fractured. This is because of Brexit, the position of Central and Eastern Europe on the refugee matter and the upcoming referendum in Italy. Russian president Vladimir Putin can benefit from this situation and he has ample room to maneuver, the politologist said.

SRS has a new leader

Another important event for Latvia took place this week. The government has finally found a new leader for the State Revenue Service – Ilze Cirule. Her term begins 14 November.

As BNN had previously reported, Cirule previously worked in the board of Balta Insurance. She had also worked in insurance companies Parekss and Gjensidige Baltic.

According to Cirule, she has no skeletons in her closet. She intends to enhance the service’s analytical side and make it more business friendly. Cirule also offers to reduce the volume of cash money. This, according to her, will help combat grey economy more effectively.

Latvian Days in Minsk

Meanwhile, the life of businessmen continues regardless of whether or not SRS has a new leader. This week marked the beginning of Latvian Days in Minsk, which will last until 10 December.

Opposite to some expectations, Latvia’s membership in the EU has not reduced its attractiveness from the perspective of economic cooperation with Belarus. The main spheres of cooperation between the two countries include transit, trade, woodworking, innovations and IT, as well as cooperative realization of investment projects.

In 2015, eternal trade turnover of goods between Latvia and Belarus was EUR 522.4 million. Belarus became Latvia’s 15th most important external trade partner. Exports from Belarus traditionally take 2nd place in Latvia’s overall volume of railway transports. The volume of goods and services exported to Belarus reached EUR 190.9 million in 2015. The volume of goods and services imported from Belarus reached EUR 3.331 million or 2.2% of Latvia’s entire import volume.

This means there is great potential for improvement of indexes in investments. Matters of economic cooperation will be discussed as part of Latvian Days in Belarus.

Falling behind our neighbours

According to information from the Central Statistical Bureau of Latvia, the country still exports and imports less than Lithuania and Estonia.

Volumes of Latvia’s exports and imports for the first eight months of 2016 were below indexes of Lithuania and Estonia. The biggest balance deficit in foreign trade among Baltic States was noted in Lithuania this year.

In the first eight months of 2016 Latvia’s export volume reached EUR 6.52 billion. Lithuania exported goods worth a total of EUR 14.41 billion and Estonia exported goods worth EUR 7.71 billion.

Latvia and Estonia exported 74% and Lithuania exported 61% to Europe.

From Europe, Latvia imported 80% of the total volume of the country’s imports (Lithuania imported 70% and Estonia imported 84%).

Ref: 017.109.109.5001


Leave a reply

Beer more expensive in Estonia: Year’s second excise rise on beer, cider in July

With swift excise tax increase on alcohol continuing, on July 1, the rate on beer and cider is to be raised by 70%, reaching 15.52 euro cents for percent of alcohol by volume per litre.

Finance Ministry changes approach to tracking accomplishment of state budget goals

Latvian taxpayers will be able to follow results expected from the state budget in a simple and comprehensive way, as reported by Finance Ministry.

Survey – 94% of Europeans take photos using their phones

Studies show that smart-phones are gradually replacing other devices, steadily becoming one of the most important device when travelling. 94% of European residents take photos using their phones, as concluded in a study by Huawei.

Amid global ransomware cyberattack analysts point to Ukrainian accounting software

A number of cybersecurity firm analysts have noted that in this week’s international cyberattack, which has severely affected computer systems in Ukraine, has been linked to the Ukraine-built accounting and finance software MEDoc.

Bondars among defendants in the case for enforcement of 15 million euros from Krajbanka

Former parliamentarian and current member of Riga City Council Martins Bondars is among the defendants in the civil case for enforcement of EUR 15 million from seven former Latvijas Krajbanka board members.

Italy warns it could not allow in ships with migrants rescued at sea

The government of Italy has warned the European Union that the country may stop foreign ships from unloading migrants at Italian ports, because the migrant situation in Italy is deemed to be unsustainable.

Lithuania reaches gas delivery deal with U.S. firm

Lithuania’s gas trading company Lietuvos Duju Tiekimas has this week unveiled that it has sealed a contract to purchase liquified natural from the U.S.

Latvian state officials concerned – oligarchs’ talks only increase people’s distrust in politicians

If talks like that take place, it proves that society’s level of trust in politicians only increases, said Latvian President Raimonds Vejonis after his meeting with Prime Minister Maris Kucinskis on Wednesday, 28 June.

Otto Ozols: one of Latvia’s presidents was bought like pig at a market

«The saddest fact is that people with flat and shallow thinking have such enormous influence in Latvia,» Latvian publicist Otto Ozols comments on the situation about Ir magazine’s recent publication of secret talks that took place in Ridzene Hotel.

Construction costs in Latvia grew 0.2% in May

Compared to April, the level of construction costs in Latvia increased by 0.2 % in May 2017. Labour remuneration of workers grew by 0.4 %, maintenance and operational costs of machinery and equipment rose by 0.3 %, whereas prices of building materials increased by 0.2 %.

Residents are certain no new jobs will appear in municipalities after elections

68% or the majority of interviewed Latvian Residents are certain no new jobs will appear after municipal elections, according to results of a survey by CV Market.

LDz Council Chairman Ansis Zeltins approved as new Freeport of Riga CEO

The committee responsible for the selection of candidates picked LDz Council Chairman Ansis Zeltins as the best candidate.

Estonian court: Right to protection of family life also to same-sex couples

Estonian Supreme Court has established in a decision that same-sex couples also have the right to protection of family life, when the court detailed Estonian court jurisdiction in disputes over residence permits involving foreign nationals.

Dzintars losses have declined: can the company survive the crisis?

Compared with 2015, net turnover of Dzintars declined by 104,000 euros in 2016. The company’s losses, on the other hand have declined by 904,000 euros when compared with 2015, says the company’s board member Dagnija Maike.

Victims of Portugal’s forest fires let down by communications with rescuers

After the Portugal wildfires, in which 64 people died and 254 got injured earlier in the month, the government of Portugal has ordered an investigation into the operation of emergency communication operations as at least 10 emergency calls are reported to have failed to reach firefighters.

Latvian Shipping Company sells House of Press for 16.8 million euros

Latvian Shipping Company’s subsidiary LASCO Investment has sold House of Press to PN Project, which is managed by Lithuanian real estate and private capital company Lords LB Asset Management. The total value of the deal is EUR 16.8 million, as reported by LSC.

Latvia and other countries refuse to support proposal for energy efficiency

The proposal to add changes to the Energy Efficiency Directive has been approved, establishing a goal to reach 30% of energy saving within the European Union by 2030.

Netherlands ruled partly liable for 350 Srebrenica victims

In relation to the Srebrenica massacre, an appeals court in the Netherlands has for the most part upheld an earlier ruling that the Dutch state was liable for the deaths of 350 Bosniak men in the 1995 Srebrenica massacre.

Lembergs fails to chair third meeting of the new Ventspils City Council; this time he «lost his voice»

Although the slogan of Ventspils is ‘City with tomorrow’, little changes in the work of the local city council – the organizational process of meetings remains absurd and incomprehensible. For example, Aivars Lembergs, who is legally prohibited from performing his duties as Chairman of Ventspils City Council but has been elected as mayor regardless, could not chair the most recent meeting of the city council. The excuse he gave was that he lost his voice.

Multi-storey building at Zolitude Tragedy site sold at an auction for 3.9 million euros

The multi-storey building located at the site of Zolitude tragedy in Riga, Priedaines Street 20, has been sold at an auction for EUR 3.9 million, according to information published at eizsoles.ta.gov.lv.

Registration of social service providers employs «silence means consent» principle

From now on administrative practice of institutions responsible for social service providers will employ a «silence means consent» principle to reduce bureaucracy. This means if service providers do not receive a response to their application from a ministry by a specific date, service providers will be well within their rights to commence providing services, explains Welfare Ministry.

Experts: Latvia either does not use advantages offered by technologies

In spite of wide technological opportunities to create a powerful digital economy, Latvia either does not know how or simply does not use those advantages. This hurts the country’s competitiveness on the global market.

Estonia pushed to ban low nutritional value products from schools

Food and drinks with a low nutritional value and rich in calories should not be sold in schools, sets forth a bill drafted by the Estonian Social Affairs Ministry and the Minister of Health and Labour.

CEOs admit – it is getting harder and harder to find new workers

Study results show that 60% of businesses admit it is getting harder and harder to find workers. This marks more complex personnel selection processes for employers, which often costs more time and money.

Opinion: consumption of dairy products in Latvia continues to decline

Consumption of dairy products continues to decline in Latvia, says Food Union Vice-President for strategy and businesses development matters Normunds Stanevics.

Newest comments

Do you have an acquaintance currently looking for a job?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: