bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Friday 20.10.2017 | Name days: Leonīda, Leonīds
LatviaLatvia

Economists: small retail trade increase rates will not be maintainable this year

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

The small retail trade turnover increase will be reflected on in the publicly available data for February of the Central Statistics Board, however economists of Latvian banks express precaution on this matter, noting, that this increase will not continue in the coming months.

Swedbank senior economist Lija Strausuna:

Increase of the income of residents was not so big to ensure a steep increase in spending, furthermore only the income of a specific part of society has increased. But lower prices along with bigger resident’s optimism could motivate them to purchase long lasting products. Household credit window has also become smaller. Consumer mood in the beginning of the year continued to improve. But it is somewhat of a paradox that the significant increase in consumer optimism in the beginning of February occurred because even more residents planned to save up some money in the next 12 months. Meanwhile the evaluation of the financial state of households for the coming months did not improve all that much. This could mean that, residents plan the so called “precautionary” savings and will spend money more carefully.

Unfortunately there are still many households in Latvia, which cannot afford larger purchases, even despite attractive prices. Furthermore the number of residents continues to drop. Most likely, the increase in the turnover of small retail trade is maintained by the more prosperous part of society. It is possible, that instead of celebrating the increase in spending and the relative income in taxes, it would be necessary to urgently take the responsibility to solve the problem of inequality.

SEB Bank economist Dainis Gaspuitis:

The new year in small retail trade began with unexpected and rapid changes. This kind of increase creates a lot of questions, because an equally rapid increase in the relative month was noted in 2005 and 2007. Of course, caution ruled the last years, but even future perspectives do not predict the possible return of fat years.

Though January’s data is surprisingly good, the next months’ spending activity will be seriously affected by costs for heating. The set rate is simply not maintainable. Consumer mood will be most important. But experience shows, that external events do not significantly affect consumer mood, it is mostly affected by events in the country.

Latvian Bank economist Agnese Becevska:

There are many factors which could have provoked the increase in non-food product purchases: smaller heating costs because of a warm period of October-December, cash withdrawal after the events in the bank sector, deferred consumption, the improvement of consumer mood and others. We will not see any more sudden jumps in the trade sector, because the new costs for heating do not cultivate optimism and spare finances.

Another factor which could have influenced the purchases, but there is still no operative data on it, is – salary changes. Even the social sector expresses the lack of workers and it is assumed that the reasons vary from benefits, to salary increases and other motivational options including health insurance. Even in the past, some businessmen noted that salary size increases in the fight for employees. It is possible that the promised addition to salaries affected consumption in January, and Christmas benefits could have added to the wallets.

Aside from small retail trade vehicle sales in January, when compared to December, dropped by 6.5%, but compared to last year’s January, a solid increase is preserved (by 20.5%). Sales were affected by not only resident consumption, but also by legal persons spending – especially in the long lasting product group.

Ref: 102.109.109.785

 


Leave a reply

Prime Minister: Latvia cannot accept additional asylum seekers

Latvia cannot afford to resettle additional asylum seekers, said Prime Minister Māris Kučinskis during his meeting with European Commission President Jean-Claude Juncker on Thursday, 19 October.

Scandinavians purchase tourism company in Lithuania; changes expected in Latvia too

Dutch Otravo online travel organization has expanded and has purchased Lithuanian online travel agency Interno Partneris, thereby entering the Baltic market.

Ombudsman: non-citizen status matter should be resolved in next decade

The next ten years may be the transition period to ‘put an end’ to the non-citizen status in Latvia, said ombudsman Juris Jansons in an interview to LTV programme Rīta panorama.

Swedish Foreign Minister: harassment exists at highest political level

The Foreign Affairs Minister of Sweden, Margot Wallström, has commended the current sexual assault and harassment awareness campaign in social media and urged to fellow politicians to address the problem.

Latvenergo recognized as Latvia’s most valuable company for tenth time

Latvenergo has been recognized as Latvia’s most valuable company in 2017. Its value grew 34% in comparison with 2016, according to the TOP 101 list of Latvia’s most valuable companies compiled by Prudentia and Nasdaq Riga.

Number of births and number of deaths decline in Latvia

During the first nine months of this year 15,723 babies were born in Latvia, which is 1,113 children fewer than in the corresponding period of the last year.

CC applies binding conditions for the sale of MTG Broadcasting AB

Latvian Competition Council has decided to permit Bite Lietuva to purchase MTG Broadcasting AB group’s businesses in Latvia. CC has applied several binding conditions to prevent a possible impact on competition on the television services and advertisement market.

Eesti Energia warns: Limiting CO2 emissions on capacity could endanger energy supply

Estonian energy giant Eesti Energia has evaluated that a plan under discussion in the European Union to introduce a carbon dioxide release limit for capacity mechanisms to qualify for subsidies could adversely affect the security of supply in Estonia and the Baltic states.

Solidarity tax norm recognized as non-compliant with Latvia’s Constitution

On Thursday, 19 October, the Constitutional Court of the Republic of Latvia declared the Solidarity tax norm as non-compliant with the country’s Constitution.

Survey: Riga residents go to the doctor’s the most often

34% of residents undergo regular health checks, according to Mana Aptieka & Apotheka health index. In addition, women are twice as serious about health checks as men.

LG cozies up with idea of rebuilding railway tracks to Reņģe, Latvia

Lithuania‘s Lietuvos Geležinkeliai has sent a mixed message as to what it intends to do next following an EC fine of nearly 28 million against it over the dismantling a 19-km railway stretch with the Latvian village of Rengė.

Čigāne: European Union’s social pillar is very important to Latvia

On Wednesday, 18 October, Saeima’s European Affairs Committee approved Latvia’s national position on the introduction of EU Pillar of Social Rights.

40% of all car problems are relate to lighting, battery and security systems

It has been determined that 41% of all car problems are related to lighting devices, 39% of problems are related to malfunctioning batteries, and 44% of problems are related to security systems.

Xi Jinping: Chinese socialism has entered new era

China's ruling Communist Party's five-year congress has been opened with the country's President Xi Jinping outlining a general plan for the future development of China.

Public transport in Latvia procurement may be at risk

Considering that continued and unhindered provision of public transport services on ten routes may become at risk from 1 January 2018 onward, Public Transport Council made a decision to ask the Road Directorate to sign a new contract to ensure services are available in multiple Latvian cities, as confirmed by Road Directorate.

Iraqi forces retake disputed territories from Kurdish forces

Three weeks after the Iraqi Kurdistan independence referendum, forces of the Iraqi central government have taken control of the territories in the country, which had been seized by Kurdish fighters after victories over the terrorist group «Islamic State».

Sale of MTG’s business in Baltics to Providence concludes successfully

Wednesday, 18 October, marked the successful conclusion of the sale of Baltic assets owned by Swedish media concern Modern Times Group to Providence Equity Partners. From now on companies previously owned by MTG in Baltics will function as a single organization named All Media Baltics, as confirmed by the company’s manager Pierre Danon.

Estonian port company makes 29% more revenue in January-September

Estonian state port company Port of Tallinn has made the revenue in the amount of 99.1 million euros in the first nine months of 2017, which is a 29% increase compared to January-September in 2016.

42 gambling halls to be closed down in Riga in next five years

On Wednesday, 18 October, Riga City Council supported plans to close another 33 gambling halls in the city. With that, a total of 42 gambling halls will be liquidated in the next five year.

Latvia has the highest index of female CEOs among EU member states

The highest index of female CEOs among European Union member states belongs to Latvia – 47%. In total, only 33% of CEOs in EU were female last year, according to data from the Central Statistical Bureau of Latvia.

Survey: more and more people take notice of benefits provided by EU membership

65% of Latvian residents believe the country’s membership in the European Union has brought tangible benefits. A similar opinion was voiced by 64% of residents of all EU member states in the Eurobarometer study performed by the European Parliament.

17 persons in need of international aid are relocated to Latvia from Turkey

On Tuesday, 17 October, seventeen individuals, including nine children, in need of international protection were relocated to Latvia from Turkey as part of EU resettlement programme, as confirmed by Latvian Office of Citizenship and Migration Affairs.

BATL: to avoid crisis in transit sector, government and Transport Ministry must act

Latvian Prime Minister Māris Kučinskis’ led Latvian Ports, Transit and Logistics Council also supports Saeima’s National Economy Committee’s decision on the need for Transport Ministry to develop a long-term vision for the development of the country’s transit industry.

Psychologist: six-year-old children are not ready for school

«It is wrong to believe that the sooner a child starts going to school, the better their academic results will be. Reforms are performed aggressively, without asking pedagogues or other specialists for their opinion. We lack a comprehensive analysis of the current situation that would be based on studies, not international ratings,» says certified clinical psychologist and psychotherapist Jolanta Lamstere.

Klaipeda transport ticketing system to be installed by Estonian Ridango

In the Lithuanian port city of Klaipeda, Estonian firm Ridango has been selected for installing its technology on public transport.