bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 22.11.2017 | Name days: Aldis, Alfons, Aldris
LatviaLatvia

Expert: can Latvia’s economy eat what it bit off this year?

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUExport markets’ growth is sustainable and its growth will continue this year. However, the upcoming elections in Europe could potentially ruin consumers’ mood in Latvia’s largest export destinations. In general, the country’s economy continues to grow, economic experts say.

BNN had previously reported that the value of export goods has grown 13.3% and the value of import goods has grown 18.5%.

DNB Bank’s economist Peteris Strautins says about January’s export: «This is the most rapid annual increase since April 2013. For the first time in the past four years conditions for exports of goods are actually positive.»

Swedbank economist Agnese Buceniece explains: «Processing industry’s breakthrough we’d noticed in Q4 and which is expected to continue this year is clearly reflected in export yield».

SEB Bank’s macroeconomics expert Dainis Gaspuitis notes that foreign trade had begun improving at the end of last year. In addition, news about Estonia’s export and import growth (14% and 40% respectively) was published a little earlier than usual. This information suggested that Latvia’s success may turn out very good as well.

Strautins explains the main changes: «Positive mood also wars the logging industry, which was the only one in January to have had contributed to total export growth – more than a quarter, if we include furniture. Concerns about side-product and energy product sales crisis have not come true: pellet warehouses have been emptied considerably, saw mills and factories work at great speeds. Another one-eighth of exports consists of alcoholic beverages – the only in the re-export category with such a large influence. Exports of machineries and equipment declined 9.9% and exports of electrical appliances and equipment declined 2.1%. Provisionally speaking, local export has grown by 16% and re-export – by 10%».

«The largest contribution to growth was provided by exports of wood, metal and metallic products, food and vehicle exports. These industries are also noteworthy for the increase of industrial output. In January, after almost a two-year draught, producer prices for export goods finally began growing again,» Bauceniece explains.

Swedbank economist explains CSB’s data on imports: «Imports of mineral products continue decreasing. Rapid increase of import value is secured by chemical production, food, vehicles, metals and metallic products. Over the course of the past couple of months, we have noticed a trend that after one year gap, imports of mechanisms and mechanical devices and electronic devices have finally started growing again (+13% and +7% respectively). This could mean that investment activity is beginning to recover in Latvia.»

Gaspuitis explains predictions for the future: «Exports of woodworking, food products, metal and metallic products demonstrated stable growth in January. Growth in exports will continue this year. It is likely there may be major fluctuations in exports. Nevertheless, we expect a 6% increase. It will create a good impulse for potential growth in other exports. Contribution to growth and more active investments and consumption will pull along imports, which will pull trade balance into the negative again. This decline will be covered with surplus of service export balance.»

Swedbank economist Bauceniece is of a similar opinion: «Growth in Latvia’s largest export markets is sustainable, demand continues to increase and consumers’ mood is positive. This can help cultivate export volumes. Export prices have begun growing and it seems export price deflation is behind us. Higher prices for out exporters promise higher income.»

Strautins also shares his opinion: «The economy would also grow this year even if stagnation was present in exports. This year’s main challenge will be finding people that will build homes, produce goods, provide programming services, work at restaurants and sell clothes. Some of them currently complain about the poor state of gravel roads and others work abroad.»

Ref: 225.109.109.2415


Leave a reply

Study: taxes for business in Latvia – the most attractive among Baltic States

Latvia’s tax system is the most attractive among Baltic States and 13th most attractive among 190 countries of the world, according to the latest study performed by the World Bank and PricewaterhouseCoopers on tax systems around the world.

Turkish journalist punished with prison term for tweet

A court in Turkey has sentenced on Tuesday, November 21, a journalist from opposition newspaper Cumhuriyet to three years behind bars over accusations of spreading terrorist propaganda in relation to a post on Twitter, which had been briefly on the microblogging site this spring.

Latvia – 35th country in the world ICT development-wise

This year Latvia reached 35th place in the world in terms of development of information and communication technologies, as mentioned in the latest report by UN International Telecommunication Union.

Instant payment infrastructure comes online in Europe

On Tuesday, 21 November, instant payment infrastructure will be introduced across Europe. On top of that, European banks’ founded EBA Clearing will also introduce its RT1 instant payment system. The European-level solution has also been coordinated with the instant payment processing infrastructure prepared by the Bank of Latvia in August 2017, as reported by the bank.

Police dismantle criminal group that caused damage worth seven million euros to the state

Latvian State Revenue Service’s Finance Police dismantled a criminal group in November 2017. A total of 34 searches were performed and two people were found suspect. The criminal group performed tax avoidance and money laundering operations, causing damages worth nearly seven million euros to the state, BNN was informed by SRS.

Zariņš: deputies who vote for the state budget without amendments will have breached their vows

It is unacceptable for the Saeima coalition to follow the Cabinet of Ministers and like the Cabinet of Ministers breach laws during the budget approval process, says Saeima member Ivars Zariņš, adding that deputies who vote for the budget without amendments will thereby have to breach the vow they had previously made to the Latvian nation.

Estonia’s ruling Centre Party shows door to 31 competing members

The leadership of Estonia's Center Party has accepted the proposals of the party's local branches on fellow members, who ran in the Estonian municipal elections this autumn from a separate list, and expelled 31 members from the political party.

Pabriks: state interests should be held higher than party interests

Latvia cannot be allowed to drown in provincialism. It is in the country’s interest to maintain a course towards European and NATO values. In a situation when the number of centric and European-oriented parties is large, it is becoming harder and harder, because it leads to political fragmentation, and the main goal of it is reaching the 5% barrier during elections, not ensuring growth and development for Latvia, says MEP Artis Pabriks.

Reacting to e-commerce growth, Omniva rushes to expand its parcel locker network

Estonian state-owned postal company Eesti Post, which operates the Omniva brand, stated that it will broaden its network of parcel lockers expand its current parcel machines up until Christmas.

Programme: introduction of ‘honest’ taxi counters is stuck

Taxi drivers that had to replace their counters as far back as 15 October, continue delaying the process, as reported by De Factor with reference to State Revenue Service.

Ministry considers reorganizing Latvian Environmental Protection Fund’s administration

After reviewing information from the State Audit, Latvian Environmental Protection and Regional Development Ministry may consider the possibility of reforming the administration of the Latvian Environmental Protection Fund.

Uber to buy 24 000 self-driving Volvo XC90s

U.S. ride-sharing technology firm Uber has agreed with Chinese-owned Swedish carmaker Volvo on the purchase of up to 24,000 self-driving cars.

Snow expected in Latvia this week

Weather in Latvia will be cloudy at the beginning of the week and, although the sun may appear every now and then precipitation, precipitation is expected in most of the country. It will begin with rain and gradually move up to wet snow and snow, as reported by State Environment, Geology and Meteorology Centre.

Lengthy German coalition talks collapse

The German political parties that entered the country’s federal parliament after elections in September, still cannot reach an agreement on making a coalition and a majority government, but German Chancellor Angela Merkel has evaluated that new elections would be better than a minority government.

airBaltic carried more than 4,780 in flights between Riga and Liepaja

In the first six months since airBaltic has started performing regular domestic flights between Riga and Liapaja more than 4,780 passengers have been carried on this route.

Week in Lithuania. Lithuanian parliament passes Magnitsky act

Members of the European Parliament have passed a resolution requesting for the application of the so-called «nuclear option» for Poland, Article 7 of the EU Treaty, because of the threat to the rule of law in the biggest Eastern European country.

BNN summary of the week: medicinal cannabis in Lithuania, cargo anti-record, and Lemberg’s dwindling influence in UGF

BNN offers a summary of this week’s topical news in a variety of categories: Fight; Growth; Truth; Future and Opinion.

NAF: Russia’s attitude remains unfriendly towards Latvia

So far Russia’s demonstrated attitude has remained unfriendly towards Latvia, said Commander of Latvian Armed Forces Leonīds Kalniņš in an interview to LNT.

Lembergs’ turn to testify before parliamentary committee has come

Aivars Lembergs, who is accused of serious crimes and is suspended from performing duties as chairman of Ventspils City Council, has been invited to come to a meeting of the Saeima’s Investigative Committee and answer questions associated with so-called oligarchs case.

How Latvian communities around the world plan to celebrate Latvia’s birthday?

«Celebration of independence of the Republic of Latvia is an important tradition that allows members of Latvia’s diaspora to maintain ties with their homeland – this year’s event will be even more expansive and inclusive than ever before. This is because events associated with the country’s hundredth birthday will be organized all around the world,» says manager of World Federation of Free Latvians office in Latvia Jānis Andersons.

European Parliament triggers punitive procedure against Poland

Members of the European Parliament have passed a resolution requesting for the application of the so-called «nuclear option» for Poland, Article 7 of the EU Treaty, because of the threat to the rule of law in the biggest Eastern European country.

Wage rules violations most often associated with envelope wages

To promote public awareness and improve commercial environment, honest competition and honest compliance with taxes, Latvia’s State Revenue Service intends to expand its database with new information about taxpayers, BNN was told by SRS.

Management of Unity’s Saeima faction to change in December

«Political consultations with all of Unity’s partner parties that are represented in the Saeima’s faction have concluded. An agreement has been reached to perform management change before the end of Saeima’s autumn session – around 21 December,» says Unity’s chairman Arvils Ašeradens.

EP prepared to commence talks with EU governments on reforming asylum system

The European Parliament is prepared to commence talks about reforming Dublin Regulation to ensure every member state is able to resettle a portion of asylum seekers.

Estonia to pour into Finnish-Estonian cultural fund 700 000 euros

Estonian cabinet of ministers has decided to attribute 700,000 euros to the Finno-Estonian Cultural Fund, an organisation working since 2015 aimed at fostering cooperation between the two states in culture, creative economy and training both for individuals and organizations.

Newest comments