bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 18.10.2017 | Name days: Rolanda, Rolands, Ronalds, Erlends
LatviaLatvia

Economy Ministry: Latvia’s economic growth one of the most rapid in the EU

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Latvia’s economy is currently going through an export based growth, which is one of the most rapid in the European Union (EU). Also, our country’s GDP increase, which reached 6.9% in the first quarter of 2012, is based on a balanced economic structure with no significant macroeconomic instability risks, says Economy Minister Daniels Pavluts, commenting on the report of the Economy Ministry on the development of Latvia’s national economy.

«Production output and export volumes now exceed pre-crisis levels. Export increase is related to the increase of foreign demand, but, more importantly, it is also related to the increase of competitiveness of Latvian producers,»- says the minister.

He says that this is good news. It gives a good reason for careful optimism about the perspective of Latvia’s growth. At the same time, with the increase of GDP foreign trade deficit also increases and the question about future output and export volumes and the increase of competitiveness of Latvian companies remains in the centre of attention, Pavluts says.

It is noted that growing risks on foreign markets, especially within the Eurozone, did not significantly affect Latvia’s economy in the second half of 2011 and in the first half of 2012. Latvia’s growth is currently the most rapid one in the EU – GDP grew by 1.1% in the first quarter of 2012 (according to seasonally adjusted data) compared with the previous quarter by 6.9%, EM data states.

With export increasing, production output of processing industry keep increasing as well – industry production volumes were by 11.7% larger in 2011 than they were in 2010, they grew by 16.5% in the first quarter of 2012 compared with the first quarter of 2011. Production volumes increased in almost all manufacturing sectors, especially in woodworking, metalworking, electronics, machinery and equipment. Overall, the manufacturing industry in 2011 provided an average of ¼ of the total economic growth. Increase in revenue from exports had a positive impact on the industry in the domestic market, especially in trade and construction sectors.

It is also said that increase of employment and gradual salary increase contribute to the increase of private consumption. Private consumption exceeded 2010 level by 4.4% in 2011, and exceeded the level of the first quarter of 2011 by 5.4% in the first quarter of 2012.

It is also noted that investments keep increasing as well. The increase of investments is largely due to such industries like energy, woodworking and metal product production.

«Even though 2012 began with positive tendencies in national economy, external risks related to the future development of the situation in the Eurozone remain. With increasing growth rates in our main trade partner countries, Latvia’s export increase could become more moderate, and its positive effects on the national economy could decline. Nevertheless, GDP growth will be more rapid in 2012 than it was previously projected and can still reach 5%,»- said in the ministry’s statement.

The EM notes that medium term growth of national economy will be mainly dependent on two factors. First, the decision that the Eurozone countries will make in relation to solving the situation in the finance sector to avoid a possible economic stagnation. The second factor is the effectiveness of the structure policy of the Latvian government in improving the country’s economic competitiveness.

In the event of a rapid growth scenario in a medium term perspective Latvia’s growth rates could reach a stable 5% increase per year. In the event of a slower growth scenario, with a weak growth in Europe and the inability to improve the competitiveness of trade industries, the recovery of Latvia’s economy from the crisis could be performed much slower.

Ref: 103.109.109.2813


Leave a reply

  1. Andrej says:

    Two words……False Statistics

    Thumb up 0 Thumb down 0

Anti-corruption protesters in Ukraine push for reforms

Three protesters and a policeman have been injured in Kyiv, Ukraine, as a crowd of anti-corruption demonstrators voiced their demands for reforms aimed at tackling corruption in the country.

«Islamic state» capital conquered by Syrian Democratic Forces

An alliance of Syrian-Kurdish fighters, which is supported by the U.S., has stated it has gained full control of Raqqa, which has been for three years the centre of the «Islamic state» regime.

Poland hopes Turkey would join EU

Polish President Andrzej Duda meeting his Turkish counterpart shortly before an European Union-Turkey summit has expressed a hope that the country located at the cross-roads between Europe and the Middle East would join the EU some time.

Number of people at risk of poverty in Baltics in higher than the average in EU

The ratio of people subjected to poverty or social exclusion risk in Baltic States is higher than the average in the European Union, according to Eurostat data compiled for 26 out of 28 member states in 2016.

E-voting defended in Estonia after criticism from party leader

Responding to claims from a leader of an Estonian political party that the country’s e-voting system lacks transparency, the head of e-Government Academy’s e-democracy department explained it was possible that the voters of one party are more active e-voters than supporters of other parties.

Residents’ mood worsens; people become more critical about their finances

Over the course of the past month, residents’ general mood has worsened significantly – declines have been noted on all positions analysed by the survey. Residents were critical the most in the survey about their material state – the index in this category declined from -9 to -11, according to the latest Baltic International Bank Latvian Barometer.

Antāne: Saeima’s National Economy Committee has heard the transit industry’s cry

Inga Antāne, president of Baltic Association – Transport and Logistics, is satisfied with the decision that was made at the recent meeting of Saeima’s Economic, Agricultural, Environmental and Regional Policy Committee, asking the Transport Ministry to develop and present a sustainable development strategy for the industry and putting an emphasis on raising the competitiveness of railway tariffs.

Latvian’s attitude towards combating cancer in late stages seems irresponsible

The attitude towards combating cancer in late stages in Latvia remains very low, says former healthcare minister of Latvia Ingrīda Circene.

Hydrogen-powered transport technology – a reality in Latvia

There are plans to establish a hydrogen refuelling station in Riga before the end of 2017. A publicly available H2 refuelling station in Riga would secure an inter-state network of hydrogen refuelling stations: the closest other station will be established in Pernava, says Association Zero Emission Mobility Support chairman Arnis Bergs.

Estonian ministry to collect 270 000 euros from IT company over failure to build information system

Tieto Estonia, the Estonian branch of Finnish IT firm group Tieto will compensate the Estonian Ministry of Social Affairs 270,000 euros for the failure of the SKAIS2 project, the aim of which was the development of a new information system for the Estonian social insurance authority, but was deemed a failure in August.

Latvia invites Iran to act constructively to ensure security

Latvian Foreign Affairs Minister Edgars Rinkēvičs participated in a meeting of the EU Foreign Affairs Council in Luxembourg, where he discussed about the role of Iran in the region and the Joint Comprehensive Plan of Action in light of the upcoming report from US President Donald Trump to the Congress on Iran’s progress realizing the plan.

Vigil held in Malta over killing of investigative journalist

Several thousand people in Malta have taken part in a vigil held after news broke of the killing of an investigative journalist, who blamed Maltese government for corruption.

American exchange indexes reach record-high values; oil prices on the rise

In response to price rise of bank stocks, three leading indexes of US exchanges reached new record heights on Monday, 16 October. In addition, US Federal Reserve System manager Janet Yellen’s prediction regarding a soon inflation rise has increased confidence that base interest rate will increase in December.

54.14% more alcohol exported from Latvia; most of it to Russia

In the first eight months of 2017, a total of 102.259 million litres of alcoholic drinks was exported from Latvia, which is 54.14% more when compared with the same period of last year.

In pictures: Ireland hit by worst storm in 50 years

Three people have been killed in Ireland in the storm Ophelia, which cut off electricity networks to 120 000 homes and businesses in the country. Gusts of wind in Ireland on Monday, October 16, had reached the speed of 44 metres per second.

Tragic wildfires in Portugal and Spain

No less than 30 people have died in wildfires in Portugal and Spain.

Ašeradens to leave Latvian government at the end of November

Latvian Economy Minister Arvils Ašeradens intends to leave the government after approval of the 2018 budget in the Saeima, which is scheduled for the end of November, as confirmed by Prime Minister Māris Kučinskis.

Islamic extremists blamed for tragic terrorist attack in Somalia

The death-toll in a tragic terror attack in the eastern African state of Somalia has reached 320 people and local authorities have stated that a key member of the cell that allegedly launched the attack on Mogadishu has told them that al-Shabaab was responsible for the crime.

Rīgas namu pārvaldnieks gets new management

From now on Rīgas namu pārvaldnieks will have a new chairman: once the head of Latio Namsaimnieks has been appointed as the new head of the company. The other vacant post has been given to Ardis Pāvilsons.

Catalonia misses ultimatum deadline, Spanish government vows to act after Thursday

The separatist Spainish region of Catalonia has missed the deadline to clarify, if it has declared independence and Madrid has received a letter from the President of the autonomous region, which still needs analysis.

What will be the consequences for companies that cheated with electricity production permits

Businesses that were caught using fake permits for electricity production in mandatory procurements will not have their permits extended, says Latvian Economy Minister Arvils Ašeradens.

Latvian tourist accommodation facilities experience increase of overnight guests

The number of nights tourists and other guests spent in Latvian hotels and other tourist accommodation facilities in the first eight months of 2018 has grown 12.2% in comparison with the same period of last year, reaching 3.524 million.

Antāne: transit industry has been on thin ice lately

«The transit industry has been on thin ice lately. Russia’s decision to divert all cargoes to its ports will only smash the ice. The government and state policy-makers have two choices – wait for the ice to break completely and watch the industry drown until finally stepping in, or act now to at least reduce the crisis for the country’s national economy, workers and their families,» says President of Baltic Association – Transit and Logistics Inga Antāne.

Kučinskis evasive in evaluation of Unity’s Economy Minister candidates

Latvian Prime Minister Māris Kučinskis remains evasive when it comes to assessing Unity’s Economy Minister candidates.

Amid alleged harassment scandal, Rõivas leaves post in Riigikogu

The former head of Estonian government Taavi Rõivas, who has been pointed to as allegedly having groped a woman during a visit to Singapore, has denied the claims, but has nevertheless decided to leave the of the second deputy speaker of the Estonian parliament.

Newest comments