bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 21.08.2017 | Name days: Linda, Janīna
LatviaLatvia

Economists: Latvia’s GDP growth will no longer be so rapid

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Latvia’s GDP is growing, owing its rates mainly to processing industry, construction, transport and communication industries. However, growth rates will drop in the coming quarters of the year. Also, economic growth is mainly based on internal consumption increase. Bank economists give their projections.

Bank of Latvia economist Igor Kasyanov:

Latvia’s GDP growth has been positive and stable. It is expected that GDP growth rates will drop a bit in Q3 of 2012, but growth will remain better than in some other European countries. Risks that slow Latvia’s growth will remain throughout the year. Even though Latvian manufacturers and exporters successfully continue to diversify their product and client portfolios, it should be remembered that Europe is not the only one with economic problems. China’s economic growth is gradually slowing down, USA’s economy is nearing another debt “barrier”, and the growing oil, food and other product prices threaten industrially developed economies.

Development of the budget for 2013 will be most important in the second half of the year, especially given the coming municipal elections. We need to continue structure reforms in education, healthcare, energy and business environment. It will provide medium and long-term development of the national economy.

Latvia’s national economy is on the right path – we are growing in spite of the European and global economic problems. It is proved by 11 quarters of economic growth in a row. It proves that the decisions made in the past have been successful and that we need to continue working on new reforms to ensure stable growth in the future.

Swedbank chief economist Marting Kazaks:

Growth is slowed and previous tendencies remain. Along with unemployment rate reduction, stable attitude and slow salary growth, the desire of households to spend more also grows. Household expenses have grown by 7.2%.

Activity surrounding base capital investments is still very high, but its rates have decreased to 20.5% (39% in Q1). Investment activity is mainly turned towards increasing production output, as well as formation and restoration of companies’ infrastructure. Investment volume is still insufficient in Latvia. Quality investments in export are desperately needed for production output and infrastructure improvements; without them, Latvia’s growth will soon drop. Therefore, we need to continue to invest money!

Latvia’s economy continues to recover, but growth rates grow slower. The role of households in the economy is growing again. Even though households can afford to spend more money, they should also think about making precaution pillows.

SEB Bank economist Dainis Gaspuitis:

As a whole, the total increase has been 5.9% in the last half-year, which is very good on the background of our Baltic neighbours. Export plays a major role in Estonia’s and Lithuania’s, with that there is currently a notable export rate slowdown because of GDP changes from within. Deciding events will transpire on the export markets, in other words – in the ability to preserve current positions. Meanwhile, Eurozone is drowning in recession. The situation could become clearer in the middle of next year, even though there is no guarantee the leaders of Europe will manage to find a solution for the crisis. If the situation in Eurozone does not go out of hand, growth rates in the second half-year will become slower, but they will remain.

DNB Bank economic expert Peteris Strautins:

The change of political course will help internal consumption. No one expects the current government to suddenly begin windy money spending activities, and it is good. However, any additional budget deficit reduction measures will be insignificant on the general background of budget consolidation. Maybe there is no reason for concern, because, in any case, there is very limited chance to accurately predict such a complicated and chaotic process, especially given the fact that we are talking about Latvia.

Nordea Bank senior economist Andris Strazds:

The negative effect of the Eurozone’s debt crisis has so far been less significant than expected and even in the event of a very high drop in economic growth rates in Q2, it is still clear that Latvia’s economy will grow by more than 4% during the year. The only significant risk would be the beginning of a military conflict between Israel and Iran.

Ref: 102.109.109.3500


Leave a reply

  1. JPR says:

    Time will tell!

    Thumb up 0 Thumb down 0

Terrorists in Barcelona were planning three explosions

Terrorists, who performed two attacks in Catalonia last week, were initially planning to blow up three shuttle buses in crowded areas in Barcelona, as reported by El Espano.

Lawyer: Maxima wants to earn by reducing compensations for the tragedy

Maxima Latvija and Zolitude 21.11 have reached an agreement on payment of EUR 900,000 to support victims of Zolitude tragedy – EUR 5,000 to EUR 75,000 to each person, as reported by Maxima Latvija.

Producer prices in industry in Latvia grew 0.4% in July

Compared to June, the level of producer prices in Latvian industry rose by 0.4 % in July 2017. The prices of products sold on the domestic market increased by 0.5 %, whereas the prices of exported products grew by 0.3 %.

Enefit: Latvia reduces electricity price difference with neighbouring countries

In recent years, Latvia has managed to reduce the electricity price difference with other Baltic neighbouring countries, as reported by Enefit Chairman Janis Bethers.

Farmers Saeima: butter price will not remain high for long

The high price on butter in Latvia will not remain so high for long, said Farmers Saeima Vice-Chairperson Maira Dzelzkaleja-Burmistre in an interview to 900 seconds programme of LNT.

Aseradens elected as chairman of Unity; Krisjanis Karins to lead party’s city council faction

Unity elected Economy Minister Arvils Aseradens as the new chairman of the party. MEP Krisjanis Karins has been elected as the party’s leader in Riga City Council with Santa Zarane as his deputy.

LPS manager: forming the budget, it is important for municipal funding to stay the same

In the formation process of the next year’s state budget, it is necessary to guarantee finances do not reduce for municipalities, said the chairman of Latvian Association of Local and Regional Governments Gints Kaminskis in an interview to Latvijas Radio.

Police to organize inspections in stores; parents asked to watch their children as well

For the new school year, Riga Municipal Police will be performing regular inspections at stores, bars and cafes from 21 August to 31 August, as well as the first days of September, to make sure minors are not sold alcohol and tobacco products, BNN was told by police.

Colder masses of air to enter Latvia this week; more rain expected

This week’s weather in Latvia will be dictated by a cyclone hovering above Northern Europe. Colder masses of air will flow into the country. A lot of rain is expected in Latvia this week, as reported by State Environment, Geology and Meteorology Centre.

Kirsis asks police to assess possible forging of votes at Riga City Council

Riga City Council’s Unity faction chairman Vilnis Kirsis has asked State Police to check if the city council’s electronic voting system was used without another deputy’s knowledge or consent, said the politician.

Expert: attack in Spain shows how terrorists switched to more easily reachable targets

Terrorist attacks that transpired in Spain this week shows how terrorists have switched to more easily reachable targets, where security requirements are not as strict, says Latvian National Defence Academy’s Security and Strategic Research Centre researcher Martins Hirss.

New mandatory tests in schools to be introduced four years from now

In four years’ time – 2021/2022 school year – it is planned to introduce completely new mandatory tests in schools, as reported by State Education Content Centre Director Guntars Catlaks.

Nearly 9,000 children and their parents got homes thanks to state support programme

In the first half-year of 2017, state support helped 1,527 families in Latvia to buy homes. Compared with last year, families’ demand for state support has grown 6%, as reported by Altum finance institute.

Prediction: Aseradens will likely take control over Unity

Economy Minister Arvils Aseradens will become the head of Unity, Betsafe bookmakers predict. The possibility of Aseradens becoming the head of the party is given 45% probability by Betsafe.

Provisional estimate for next year’s fiscal space in Latvia is EUR 60 million

Next year’s fiscal space has been estimated at EUR 60 million, as noted by Finance Minister Dana Reizniece-Ozola, adding that a more precise estimate will be available at the end of August.

Reconstruction of Vilnius airport runway concludes; aircraft return to Vilnius

On Thursday, 17 August, Vilnius airport’s runway was festively opened. This was the most massive reconstruction for the airport in the past 20 years. It was a unique project for Lithuania and all of Europe, airport representatives say.

Islamic State terrorist group takes responsibility for Barcelona attack

The recent terrorist attack in Barcelona, in which a shuttle bus rammed a crowd of people on La Rambla, killing 13 and injuring at least 100, has become this week’s topic.

Weather in Latvia to be warm but rainy on weekends

The sun will appear every now and then between clouds on Friday, 18 August. Still, some rain is expected, especially in the afternoon in Latvia’s eastern regions, where thunderstorms may appear. Rain is expected to reach the capital in the afternoon. Wind will draw in from the south. Air temperature will reach +21° C… +26° C, according to State Environment, Geology and Meteorology Centre.

Latvia’s export growth was moderately rapid in the first six months of 2017

Compared with the same period of 2016, Latvia experienced a moderately rapid export growth in the first six months of 2017, according to data published by Eurostat on Thursday, 17 August.

Latvia’s annual inflation in July was one of the highest in Europe

Inflation indexes in Latvia and the UK both reached 2.6% in July, which is one of the highest indexes in the European Union, according to data published by Eurostat on Thursday, 17 August.

Kirsis withdraws his candidacy in favour of Aseradens

Riga City Council member Vilnis Kirsis has decided to withdraw his candidacy from the race to become chairman of Unity in favour of a different candidate – Economy Minister Arvils Aseradens.

Rinkevics expresses Latvia’s interest in maintaining political consultations with Palestine

On Thursday, 17 August, Latvia’s Foreign Affairs Minister Edgars Rinkevics met with the leader of Palestine’s diplomatic mission in Latvia, ambassador Taissir Al Adjouri, to discuss mutual relations between Latvia and Palestine and the peace process in the Middle East.

Putin grins to the world’s seven billionth baby, Lithuania wary of border incidents

Russian President Vladimir Putin paid a visit this Wednesday to Kaliningrad, the westernmost point of Russia, but the reports about his trip in the Russian enclave and over the border in Lithuania were strikingly different.

Survey: red considered the safest colour for a car

Most Latvian drivers consider red to be the safest colour for a car. The most popular, however, is black, according to results of a survey by Virši-A fuel trader.

airBaltic’s number of carried passengers reaches a record in second consecutive month

Latvian airBaltic airline carried 393,312 passengers in July 2017, which is 21% more than the same period last year. The number of passengers carried by airBaltic remains the highest it has ever been in the airline’s history, BNN was informed by the company.

Newest comments