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Monday 25.06.2018 | Name days: Maiga, Milija

Economist: budget wrecks Latvia’s economy

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Economist Raita Karnīte

We must not devastate the economy at the expense of budget, though, to my mind, it is done purposefully and deliberately, the economist Raita Karnite (Raita Karnīte) pointed out in an interview for LTV broadcast Labrīt, Latvija!.

It is characteristic of Latvia to rely on the situation and act according to the belief whatever happens will be good. Yet, the policy should be more active, not merely reactive to the situation. Latvia’s policy is aimed at one issue – the budget, although it should be realized – budget is an effect, not the cause, emphasized the economist.

I believe there is no such plan, whose implementation could lead to an economic stability. We feel what the decisions are like – it is a passive response to what is happening. However, the course of events in Latvia depends on what is taking place in the world. There is good news regarding the growth rates in the world, yet this is announced with great caution, always bearing in mind – as long as the causes of the crisis have not been eliminated, they will sooner or later manifest themselves again, Karnite indicated, noting that the possibility of retirement age rise is more than likely in Latvia.

To her mind, Latvia should make use of this situation and accumulate stocks for hard times. However, these provisions are insufficient, the bulk of them being in the social system, and this is dangerous, said the economist.

If more than 100 000 people go and passively receive their appointed portion of groats, this indicates that something has gone wrong. The first task of the government is to establish what was done wrong and fix it, and not delight about what was done right. We have no grounds to be happy about the good things, if we risk being the last in the European Community, considered Karnite.

She added that the state progress will depend on the new government’s attitude towards the situation. If they are satisfied with it, nothing is going to change. According to the economist, the Latvian economy is not being considered on a national scale.


Leave a reply

  1. Pop says:

    The first task of the government is to establish what was done wrong and fix it, and not delight about what was done right. – that’s what I think.

  2. Gunnar says:

    It seems that the budget is always the top priority almost in every government.

  3. DEXTER says:

    totally agree with Mrs. Karnite – something has gone wrong in Latvia

  4. @Rita says:

    The money alloting process is the main concern of the politicians – they seem rather disinterested in anything else.

  5. ooo says:

    Budget is an issue everywhere

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