bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 27.07.2017 | Name days: Marta, Dita
LatviaLatvia

Economic Diary of Latvia. Points of development

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUDeflation remains in Latvia. It is bad sign even though some experts try to present the economy’s hanging state as «healthy deflation». True – there are many directions in which progress has been noticed lately.

This week, the Central Statistical Bureau of Latvia reported that consumer prices in Latvia had declined 0.7% in August in comparison with July.

In the first twelve months, the average level of consumer prices has declined 0.3% in comparison with the previous year.

The biggest influence on price change in August was caused by the decline of prices on food products and non-alcoholic beverages, transport goods and services, clothes and footwear. More influence on prices was caused by the increase of prices on leisure and culture services.

It is typical for August for prices to decline. In addition, the price level was largely affected by the decline of world prices on oil in July, as reported by Economy Ministry.

According to the institution, the annual inflation level could be close to zero. This means only one thing: the economy neither declines nor grows – it is stuck in one place.

Looking for black gold

Activity has been noticed in endeavours to find oil in Latvia this week. Lithuanian Geobaltic has expressed its wish to receive a license to survey Kuldiga’s territory in search of hydrocarbons – primarily oil.

In May 2016, the aforementioned company submitted a request to Latvia’s Economy Ministry to receive a license for the survey and production of hydrocarbons in Kuldiga.

According to the Economy Ministry, territories added to the Lithuanian company’s request are part of the oil deposit that was opened in Kuldiga in 1963 – the only oil deposit in Latvia at the moment. It was found buried 950-960 m below sea level. Its total area is close to 76 ha. Oil stores in this deposit are estimated around 770,000 m3. It is possible to collect approximately 950,000 barrels worth of oil from this deposit.

An agreement is finally reached

Progress has been noticed in the Rail Baltica project as well. This week, Baltic States finally reached an agreement on procurements that will be organized for the realization of this project. Members of RB Rail Council agreed in Brussels that procurements will be divided in three categories – procurements organized by RB Rail; joint procurements realized by the joint company and procurements performed by national organizations under supervision.

All procurements will have a single standard. All of them will be realized in accordance with the main rules that will be developed by RB Rail.

Previously, Chairman of the Tourism and Transport of the European Affairs Committee Michael Kramer announced that the three Baltic States could lose the funding for the project if they fail to reach an agreement on Rail Baltica project.

He noted that he does not understand Lithuania’s stance on the organization of procurements separately from other Baltic States and not through the joint company.

Last year, the European Commission allocated EUR 106 million for the realization of Rail Baltica project in Lithuania. This year’s funding reaches nearly EUR 191 million.

Under China’s sign

Economy Minister Arvils Aseradens departed for China this week to hold talks with Chinese officials on topics related to the development of economic cooperation between Latvia and China.

Trade volumes between Latvia and China grow year after year. China is Latvia’s second largest trade partner among countries that are not part of the European Union. According to Aseradens, Latvian companies are interested in cooperation with China. This is proven by the big delegation of Latvian businessmen that accompanied Aseradens during his visit. Many Latvian products have found a niche in China. Consumers value Latvian products and their quality, the minister said.

The Chinese market has been entered by products manufactured by Food Union, Cido, Gamma-A, Piejura, Brivais vilnis, Kolumbija, Karumu fabrika, Pure Chocolate, Rāmkalni, Rigas dzirnavnieks, Aerodium, SAF Tehnika, Mikrotikls, Stenders, Sino Business Links and other Latvian companies.

Latvia is interested in closer cooperation with China in industries like transport, logistics, woodworking, food product processing, ICT, innovations and high technologies, education, tourism and others.

The minister also took part in Discover Latvia business forum that was organized in Ningbo. Latvian and Chinese officials discussed topics related to business development.

Discover Latvia business forum was attended by representatives of 20 Latvian companies that represent transport, logistics, food processing, cosmetics, textile, design and other sectors.

Ref: 017.109.109.5994


Leave a reply

Farmers Saeima: beef industry in Latvia is not sufficiently developed

Farmers Saeima believes Latvia’s beef industry is not sufficiently developed, and existing farms have not sufficiently stabilized – many farms have major debt. Because of that any kind of support for the industry is welcome.

Puce: Latvia should ratify Istanbul Convention without reservations

For Latvia’s Development political party has turned to Welfare Ministry with a request to ratify Istanbul Convention without any corrections as soon as possible, BNN was informed by the party’s representatives.

More than half of Latvian businessmen work on weekend; study shows

Businessmen normally spend eight hours and five minutes on work every day. More than 58% of Latvian businessmen also work on weekends, according to data from the latest Citadele Index study.

Farmers: crop yield this year will be positive thanks to weather

In Zemgale, crop harvest began a week ago. Harvest of winter crops is almost over. Harvests elsewhere in Latvia will commence no sooner than August, farmers say.

Murniece offers UGF to consider replacing Duklavs

«The policy is that, considering Duklavs’ involvement in Ridzene talks, the Union of Greens and Farmers should consider ways of resolving the situation,» says Saeima speaker Inara Murniece.

Chinese-Russian navy drill takes place in Baltic Sea

Russian and Chinese navies have launched their first joint military drill in the Baltic Sea raising concern to NATO member states Estonia, Latvia, Lithuania and Poland, cautious of Russia's aggressive actions in Ukraine.

Tax loss forecast by Estonian food producers dismissed by Finance Minister

Estonian Finance Minister Toomas Tõniste has rejected the grim forecast published by the Estonian Food Industry Association this week that the state budget would lose 170 million euros in tax revenue in 2018 due to excise tax hikes.

Antane: excise tax for diesel fuel should be reduced, not increased

«Unfortunately, when making the decision to increase excise tax rate for diesel fuel, the government did not consider all possible risks this decision could bring to the transport and logistics industry and the country’s economy as a whole,» BNN was told by President of Baltic Association – Transport and Logistics Inga Antane.

Association: rapid increase of excise tax would cause dramatic rise of smuggling activity

National Association for Tobacco Product Manufacturers is confused about Finance Ministry’s submitted proposals for tax reform that provide for raising excise tax on cigarettes by 11% instead of previously planned 5.5%.

UK plans to ban petrol and diesel vehicles

In an attempt to curb air pollution the UK plans to set the goal to ban from 2040 new diesel and petrol engine cars and vans.

Members of Saeima delegated to the investigative committee in charge of Oligarch case

Andrejs Judins from Unity, Martins Sics from Latvian Association of Regions, Igors Pimetovs from Harmnony, Ritvars Jansons from VL-TB/LNNK, Inguna Sudraba from To Latvia from the Heart and Ainars Mezulis from the Union of Greens and Farmers have been delegated to the parliamentary committee for the investigation of Oligarch case.

U.S. legislators back additional sanctions on Russia

The House of Representatives of the U.S. Congress has adopted imposing additional sanctions on Russia, North Korea and Iran, even though U.S. President Donald Trump has opposed fresh sanctions on Russia.

Government allows Bite Lietuva to become the owner of TV3, LNT and Star FM

On Tuesday, 25 July, the Cabinet of Ministers permitted Lithuanian company UAB BITE Lietuva to acquire decisive influence in Latvian media companies TV 3 Latvia, LNT and Star FM.

Latvia put on 34th place in global pension index

Latvia is on the 34th place of Natixis Global Asset Management global pension index. It is two places lower than last year, according to the index report for 2017.

Experts predict nearly half of beer consumed in Estonia will be procured in Latvia

Estimates of Estonian alcohol producers and retail traders show that nearly half of all beer and one-third of vodka that will be consumed in the country next year will be procured in Latvia. According to experts, this way Estonia will lose up to EUR 170 million in tax revenue, Postimees reports.

Latvia had the sixth smallest new vehicles registration index in Europe

Compared with the same period of 2016, Latvia has had the sixth lowest registration index for new commercial vehicles in Europe in January-June period, according to data published by European Automobile Manufacturers Association.

LAR proposes reducing micro-enterprise tax to 12%

Latvian Association of Regions proposes establishing micro-enterprise tax rate at 12% instead of 15%, as well as state that calendar year turnover for micro-enterprises is not to be reduced to EUR 40,000, as it is proposed by the government, but to be kept at the current restriction – under EUR 100,000.

Court dismisses Krums from the last of his supervised insolvency process

On Monday, 24 July, Riga Pardaugava Court dismissed the currently arrested insolvency administrator Ilmars Krums from the last one of the insolvency processes currently under his supervision, as confirmed by Insolvency Administration’s representative.

49 «quota refugees» away from Estonia for over 90 days

49 people of the refugees accepted by Estonia as part of the European Union's refugee relocation programme have exceeded the 90-day period of being allowed be away from the country.

Opinion: EU agricultural policy is not equal to all member states

Latvian Association of Agricultural Cooperatives organized a meeting with Agriculture Ministry’s and State Plant Protection Service’s specialists to discuss and search for solutions for opportunities to sow fermented summer rapeseed.

In pictures: Corsica hit by widespread forest fires

Fire-fighters in the French Mediterranean island of Corsica continued on the night to July 25 to battle forest fires covering an area of some 900 hectares.

Can Latvia expect a more rapid rise of excise tax for alcohol and cigarettes?

Finance Ministry has plans to raise excise tax on alcoholic beverages and cigarettes even more rapidly, according to proposals prepared by the ministry to the Excise Tax Law. These proposals have been submitted to the Saeima for approval in the final reading.

LCCI: e-health system will help reduce the number of dishonest patients

«Healthcare Ministry has to secure full integration of e-health system and form a policy for healthcare specialists that is aimed at returning labourers back to work as soon as possible, not issuing countless sick leave certificates,» as noted by representatives of Latvian Chamber for Commerce and Industry.

Swedish government admits «disastrous» data leak

The government of Sweden has stated that one of its agencies has committed a massive leak of sensitive data in 2015, when it organised an information technology outsourcing procedure.

Vucans: there are plenty of proposals for tax reform laws

Around 350 proposals have been received by the Latvian parliament in relation to tax reform laws. Last week, the Saeima supported tax reform laws in the first reading. This week, on the other hand, it is planned to review them in the final reading.