Latviski English По-русски
Wednesday 21.03.2018 | Name days: Una, Unigunde, Dzelme, Benedikts

Economists: exports keep growing

(+1 rating, 1 votes)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvia export kept surging in May, moreover, forestry exports hit 100 million lats for the first time, economists say.

SEB bank macro-economy expert Dainis Gaspuitis:

Foreign trade stack to its fast expansion also in May. The most topical issue is now on the sustainability of export. In case global raw material price gains slow down, Latvian export growth should follow the trend. Exports are expected to keep growing in the upcoming months, also sustained by price gains that also include risks of dropping exports in case prices fall.

Whereas, the real export (excluding price fluctuations) will be much smaller. Export could grow more moderate and also more sustainable, as the number of new orders from export markets has dropped.

However, in a long run, the Latvian export development will be determined by work on boosting competitiveness and value added on export goods, as well as, focus on markets with great future prospects.

DnB Nord bank economy expert Peteris Strautins:

Export hit 524 million lats in May, which is the so far best performance, outperforming the previous one in March by 4.3%. Good news is May exports outrun the ones in the crisis low point in January 2009 twice. I dare say goods and services exports taken together will exceed eight billion lats.

Forecasts on export growth rates slowing down have not come true, with a year-to-year climb hovering around 40%, hit in the second half of 2010. Back then, it seemed to be short-term. The mistake seems to be delighting but there is a question why it appeared at all. And there are two explanations to this.

The first one is the delighting one – even the most optimistic analysts of economic processes had underestimated the vitality of Latvian companies.

The bad news is the stunning export performance is already partly sustained by growing re-export proportion.

Nordea Bank senior economist Andris Strazds:

In May, the export unexpectedly set a new record, even exceeding the very high level attained in March. This was mainly due to metal and engineering industries, whose exports overall surged by 24 million lats and due to very good performance of the timber industry, reporting a rise of 7 million lats, compared to the previous record in April. However, compared to April, the balance of goods trade declined, because the import posted a rapid growth, yet like in March, it was largely attributable to high raw material (metals, mineral products) and investment goods imports.

Overall, the Latvian economy is continuing a two-speed growth; however, now that the export has surged far ahead, investments are occasionally gaining momentum. At the same time, household demand remains sluggish.

Leave a reply

Finance sector’s development council supports prohibition of shell companies

On Wednesday, 21 March, Latvian Prime Minister Māris Kučinskis’ managed Finance Sector’s Development Council supported initiative on prohibiting shell companies, as confirmed by the prime minister.

Level of producer prices in Latvia’s industry is up 3.4%

Compared to January, level of producer prices in the Latvian industry rose by 0.5 % in February 2018. Prices of products sold on the domestic market grew by 0.7 %, but prices of exported products went up by 0.3 %.

Minister: Latvia is far behind its neighbours in terms of digitization and e-skills

In terms of digitization and e-skills, Latvia is far behind its neighbouring countries and the rest of Europe, said Latvian Economy Minister Arvils Ašeradens in an interview to Latvijas Radio.

OECD: Latvian employees work longest hours in Baltics

In a comparison of Baltic countries per average annual hours worked, the Organisation for Economic Cooperation and Development has found earlier this year that the average Latvian worker spends 1,910 hours at work, followed by the Lithuanian employee with 1,885 hours and the average Estonian worker with 1,855 hours.

12th Saeima failed to complete half of its pre-election promises in field of justice

In 2014, Delna – society for openness and Providus think tank received support from all parties represented in the 12th Saeima in regards to an action plan to help strengthen the rule of law in the country.

Russia carries out military drills in Gulf of Finland

Russian Defence Ministry has stated that in the Baltic Sea Gulf of Finland, which has Finland, Russia and Estonia in its coastline, the Russian military has performed drills for its tactical special operations units.

Prime minister doubts Anti-Money Laundering Service head’s competence

«The work performed by the service requires drastic changes. Whether or not it can be done by its current head [Viesturs Burkāns], I am not sure,» said Latvian Prime Minister Māris Kučinskis in an interview to LNT, commenting on the work performed by Latvian Anti-Money Laundering Service.

Vilnius chosen for office of game developer Lockwood Publishing from UK

UK's mobile game developer Lockwood Publishing has unveiled plans to open its first overseas office in Vilnius, pointing to the industry's talent in Lithuania and the wider region.

Association: municipalities should organize their work on their own

On 6 March, Latvian Association of Local and Regional Governments reviewed the letter sent to Riga City Council by Environment Protection and Regional Development Ministry, in which the institution ordered the municipality to review their internal order and lift restrictions on the length of debates and the number of questions deputies are allowed to ask.

Canada moves to increase gun control

Canada's federal federal government has proposed new gun control measures, but they could reduce support to the ruling Liberal Party in rural areas, where guns are widely owned and used.

Minister: EU should work on rules to make sure social networks cannot be manipulated

«European Union needs to react to the Facebook data scandal and develop strict regulations to make sure social networks cannot be used to manipulate people. Appropriate regulations are needed in the matter regarding political campaigns performed on social networks, which is gradually becoming a common occurrence nowadays,» says Latvian Foreign Affairs Minister Edgars Rinkēvičs.

Profits of Latvian State Roads increased by 8.6% last year

Turnover of Latvian State Roads reached EUR 14.529 million last year, which is 10.3% more when compared to 2016. The company’s profits increased by 8.6% - to EUR 59,485, according to the published interim financial report.

Slovak President casts doubt over impartiality of proposed government

In a continuation of the political crisis in Slovakia, Slovak President Andrej Kiska has not accepted a the newly proposed government deeming it possibly unable to supervise an impartial investigation of the two murders that have shaken the Eastern European nation.

France's ex-leader Sarkozy in custody over links with Libya

French ex-President Nicolas Sarkozy has been taken in custody on March 20 and was held in custody on Tuesday and interrogated amid an investigation into whether late Libyan leader Muammar Gaddafi added funds to his 2007 election campaign.

KVV Liepājas metalurgs’ steelworks bought out by Austrian Smart Stahl

The auction for the sale of the insolvent KVV Liepājas metalurgs rolling mill equipment concluded with the victory of Austrian Smart Stahl GmbH, as confirmed by insolvency administrator Guntars Koris.

Entomologist: at least 5% of ticks in Latvia are infected with encephalitis

There have been cases of tick activity during the winter period in Latvia this year. As air temperature increases, ticks become active and start popping up. This means residents should seriously consider vaccination to avoid getting encephalitis from tick bites, entomologists say.

Rail Baltica station’s construction at Riga airport will cost EUR 4.5 million

Creation of a separate railway station and related infrastructure at Riga International Airport as part of Rail Baltica project will cost EUR 4.5 million, says the project’s manager in Latvia and board member of European Railway Lines company Andris Linužs.

Norwegian minister steps down to keep minority government in power

In a move to avoid the collapse of the Norwegian minority government, its Justice Minister Sylvi Listhaug resigned amid a political storm she had caused by blaming an opposition party of not being harsh enough toward terrorism suspects.

Political party calls for immediate action to resolve «over-salted Riga» problem

Member of For Latvia’s Development political party’s Riga City Council faction Ansis Ansbergs urges the administration to find a quick solution to the excessive use of salt during the winter season because it has a negative impact on both human and animal health, as well as the state of buildings, cars and plant life in the capital.

MEP: fair competition should be secured for all European farmers

Sixteen members of the European Parliament from Latvia, Lithuania, Estonia and Poland submitted a joint proposal on Monday, 19 March, for a resolution regarding the future of the Common Agricultural Policy with a request to equalize the level of direct payments across all of Europe starting from 2021.

Estonia prison sentence upheld to Syrian man for causing burns to wife

In the Estonian criminal case, where a Syrian man has been convicted to 10 years in prison over causing corporal damage to his wife by setting her on fire, Estonian Supreme Court has rejected his appeal.

Olainfarm’s sales volume increased by 16% over the course of the year

Provisional consolidated data from Olainfarm for February 2018 shows that product sales volumes have reached EUR 10.69 million, which is 33% more when compared with the same period of 2017.

Minister: it is not impossible for banks to reduce number of risky clients to 5%

It is not impossible for Latvian banks to reduce the number of risky clients to 5%, says Finance Minister Dana Reizniece-Ozola.

Syrian Afrin left by 220 000 civilians, Turkish-supported rebels loot town

After seizing the northern Syrian town of Afrin from Kurdish militia, Syrian rebels supported by Turkey have been looting properties, journalists have reported. The town has been left by estimated 220 000 civilians.

Ministry orders Riga City Council to lift restrictions on questions

Latvia’s Environment Protection and Regional Development Ministry has asked Riga City Council to act and fix violations of democratic principles in the newly approved rules for deputies.

Newest comments