Latviski English По-русски
Tuesday 19.06.2018 | Name days: Nils, Viktors

Finance Ministry: exports of goods reached a new record in October

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe volume of exports continued growing in November, reaching EUR 1,070,600 at the end of the month and setting a new record for exports for one month’s time. This export index is the highest in the history of statistical records in Latvia, Finance Ministry stated in its report, commenting on data from the Central Statistical Bureau.

It is concluded in the report that the total volume of exports in actual prices exceeded October’s level by 3.5%, reaching 9.7% in November. Unlike the month before, when export growth was based mainly on re-exports of mechanisms and electrical appliances, export growth structure in October was more varied.

It should be mentioned that the biggest increase among all groups of goods has been noticed for metals and their products – 43.3% in total when compared with last year’s period. This can be explained with increase of exports of iron and scrap metals to Turkey and multiple EU member states, as well as the increase of iron and steel constructions to Scandinavian countries. It should be noted that metals represent one of the most rapidly growing groups of export products in 2017. Exports of metals grew by 23.1% in the first nine months of 2017.

The second largest increase was noted for wood and wooden products – exports grew 18.8% this year. This was mostly thanks to export growth to EU member states. In spite of a rather rapid climb in October, export growth was moderate in the first ten months of the year – 6.2% when compared with the same period of the previous year.

The ministry estimates that exports of wood are rather fluctuant this year, which was because of decline of exports to Britain. Still the decline was compensated by export increase to Germany, Estonia, Sweden and, to a lesser degree, to other EU member states. Positive development of wood exports was secured thanks to products with high added value – plywood sheets, particle board, carpentry goods, etc.

At the same time, Finance Ministry mentions in its analysis that although agriculture and food products’ exports in October were 4.4% higher than last year, this was largely thanks to alcoholic beverages. This group of goods demonstrated high growth rates – 55% each month when compared with the same month last year. Growth was large based on strong alcohol exports to Russia.

Export growth has also been noted for oilseeds, meat and vegetables. A 36.2% decline of grains was noted for grains. Export value of grains was EUR 58.9 million, which more or less fits last year’s average value. Nevertheless, exports of grains did reach the highest peak (EUR 92.3 million) in October 2016. Considering the weak harvest Latvia has had this year, exports turned out significantly lower in October 2017.

In addition, exports of pharmaceutical products, polygraph products, textile materials and mineral products continued growing in October.

Looking at future perspectives for exports, it is expected that exports of goods will remain equal in the last months of 2017. Mood indexes of European consumers and businessmen are at the highest peak they’ve been on in the past decade, which points to increase of economic activity. Looking at the first three quarters of 2017, EU’s economic growth is expected to be one of the fastest in the last ten years, Latvian Finance Ministry explains.

The mood index for Latvian producers has also reached its peak since the middle of 2007. Data for the last quarter of 2017 shows that the volume of expected export orders and competitiveness positions on the EU market will likely improve somewhat closer to the end of the year.

The ministry mentions that the optimistic expectations for new orders and high production output could restore stagnant investments in processing industry, which is needed for raising export potential. It should be noted that the volume of non-financial investments in the national economy has grown by 19.2% in three quarters of 2017 when compared with the same period of 2016. Investments in processing industry have decreased by 7.4%.

The ministry also notes that the decline of investments in processing industry was also noted in 2016 (by 25.4%). It is the processing industry that influences Latvia’s exports the most. With that, growing external demand may be one of the factors that could stimulate investments in the production sector. Otherwise the lack of investments could create a situation with growing external demand and inability of producers to increase production volumes.


Leave a reply

Corruption watchdog requests criminal prosecution of Bank of Latvia head

Latvia’s Corruption Prevention and Combating Bureau has sent materials of a criminal case to the prosecutor’s office with a request to commence criminal prosecution of Bank of Latvia governor Ilmārs Rimšēvičs and businessman Māris Martinsons.

Riga City Council votes to add Vidzeme market to Riga Central Market’s capital

Riga City Council’s City Property Development Committee has voted in favour of adding Vidzeme Market to AS Riga Central Market’s capital. Opposition members voted against this during the meeting.

Police dismantle criminal group specialising in storage and transportation of excise goods

Officers of Latvia’s State Revenue Service discovered a suspicious shipment during a routine inspection of a vehicle at Riga Passenger Port. With help from State Police, officers found more than 2.3 million illegal cigarettes and 960 litres of spirit, as confirmed by police.

airBaltic receives its ninth Bombardier CS300 aircraft

On 17 June, Latvia’s airBaltic airline received its ninth Bombardier CS300 aircraft. The airline plans to expand its existing aircraft fleet with 14 CS300 aircraft before the end of the year.

Employment agency invites employers to apply for new job support programme

Employers will be able to apply for participation in a programme of the European Social Fund to help create subsidized jobs for unemployed people. Eighteen offices of Latvia’s State Employment Agency will be offering registration until 27 June.

Programme: government continues working on MPC plan’s cancellation

The disproportionate mandatory procurement component costs have become one of the biggest political scandals in Latvia since autumn last year. Attempts to put an end to the MPC system are continuing alongside the search of those responsible for the dysfunctional system. The government’s work group say it is impossible to completely cancel the system, as reported by Nekā Personīga programme.

De Facto: ABLV Bank’s self-liquidation – controlled or not so much?

«Controlled self-liquidation» – this is the undefined procedure Finance and Capital Market Commission has picked for ABLV Bank. This decision came after three months of document assessment, discussions with politicians and active media campaigns, as noted by De Facto journalists.

Latvia police investigate link between murdered insolvency administrator and missing businessman

Latvia’s State Police have begun an investigation of a possible link between the murdered insolvency administrator Mārtiņš Bunkus and the missing businessman Andris Bojārs, as confirmed by police representative Ilze Jurēvica.

Hundreds of migrants rejected in Italy allowed to leave ships in Spain

Migrants taken on rescue ships in the Mediterranean Sea and turned away by Italy and Malta have arrived in Spain's port of Valencia as three ships arrived in the harbour, including the Aquarius, which rescued the 630 migrants the week before.

Monday expected to be exceptionally hot in Latvia

Cool masses of air will flow into Latvia at the beginning of the week. Wind speed will increase as well. Several rain-cloud zones will pass through the country. Monday is expected to be the hottest day of this week in Latvia, as air temperature will likely reach +23° C… +26° C in most of the country. South-east regions of Latvia may even experience air temperature of +29° C.

Week in Lithuania. Lithuanian Railways joins European train system Interrail

Lithuanian state railway company Lietuvos Geležinkeliai has joined Interrail, a European train system that allows passengers to buy cheaper tickets for train travel across Europe.

Zolitūde tragedy lawyer criticises Latvian laws as favourable to insolvency administrators, not business owners

Outspoken Latvian lawyer, Aldis Gobzems, who defends in civil trials the victims of the Zolitūde supermarket collapse, where 54 people died and dozens suffered injuries, has joined the KPV LV party for the parliamentary election and is pointing to perceived political support to a few successful insolvency administrators.

Eurozone simulation with monthly billions to be quit in 2018

The European Central Bank has stated it would quit end its massive programme to stimulate the eurozone economy by buying bonds for 30 billion euros each month in December.

Human traffickers in Hungary sent to prison for 71 people dead in meat truck

For the deaths of 71 migrants, who suffocated in a sealed meat truck in Hungary in August 2015, a Hungarian court has sentenced four men to 25-year jail terms after finding them guilty of people-smuggling.

Lithuanian employers bristle against minimum wage raise to 450 euro

The disparities of the socio-economic development of the regions are very high in Lithuania, so raising the minimum wage from 400 euros now to 450 euros as suggested by the Lithuanian Government would cripple many small and medium-sized business owners in the less prosperous regions and the municipalities, Lithuanian economists caution. The minimum wage was raised in Lithuania by 20 per cent to 400 euros last year.

No-confidence vote on Latvian Justice Minister postponed to June 20

In the Latvian parliament, two motions asking for the resignation of Latvian Justice Minister Dzintars Rasnačs have been submitted and the vote is expected to take place on June 20.

Judge urges to stop testing politicians for cooperation with Soviet KGB

As Latvian politicians running in elections have to acknowledge that they have not worked for the Soviet State Security Committee during the Soviet occupation of the country, courts have since 1995 been looking into cases of possible cooperation and now, due to the lack of evidence, politicians should drop the evaluation of possible cooperation with the KGB, suggested a judge at the Riga Regional Court.

State budget income up 11% in Latvia this year

In the Latvian state budget, a total of 3.8 billion euros have been paid in the first five months of 2018, which is by 11% more than in the respective period last year, the Latvian State Revenue Service stated.

Volkswagen fined billion euros for diesel exhaust scheme

German car maker Volkswagen has been fined one billion euros by German prosecutors for its diesel emissions scandal and the car firm's management has stated it did not plan to appeal against the fine.

U.S.: Sanctions against North Korea to remain until complete denuclearisation

The U.S. has warned North Korea that it would not see any economic sanctions lifted until it has demonstrated «complete denuclearisation», according to U.S. Secretary of State Mike Pompeo.

Popular restaurant chain denies alleged tampering with cash registers

Criminal police in Latvia has conducted searches at the popular Riga restaurant chain Vairāk Saules on suspicion of alleged tampering with its cash registers.

Pigs in first swine fever-hit farm culled

As to the first case of domestic pigs in Latvia being infected with the African swine fever virus in 2018, Latvian veterinary authorities have culled 165 pigs in the affected farm in central Latvia.

Bank of Latvia head appeals against decision to remove his access to state secrets

The Bank of Latvia President, Ilmārs Rimšēvičs, who is suspected of accepting a bribe, has appealed to the Prosecutor General, Ēriks Kalnmeiers, against the decision by the Latvian Constitution Protection Bureau to remove his permit to access state secrets.

Charging electric car to cost 15 cents per minute in Latvia

As Latvia builds its network of 150 quick charging stations for electric vehicles, the Latvian government has approved the cost of the service at 15 euro cents per minute with the value added tax.

Bank watchdog allows ABLV Bank to perform voluntary liquidation

Latvian Financial and Capital Market Commission (FCMC) has decided at a board meeting to allow ABLV Bank to start its voluntary liquidation process.

Newest comments

Have you been offered a bribe for particular choice in election?

View Results

Loading ... Loading ...

Polls Archive

Category feed: Feed: