bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 23.01.2017 | Name days: Strauta, Grieta

KPMG: Lithuanian businessmen are the most optimistic in Baltic States

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUCEOs in nine Central and Eastern European Countries believe the economic situation will improve and inflation will remain below 2% in 2016, according to the latest survey carried out by KPMG ‘Economy’s Pulse 2015’.

According to results, the most optimistic businessmen in the Baltic States are Lithuanians. The most pessimistic businessmen in this region are found in Estonia. Opinions of Latvian businessmen regarding economic development scenarios in 2016 differ from one another greatly.

61% of Lithuanians, 53% of Latvians and 29% of Estonians expect the economic situation to improve in 2016. 51% of Estonians, 31% of Latvians and 26% of Lithuanians expect the economic state to remain the same. 21% of Estonians, 17% of Latvians and 13% of Lithuanians expect the economic situation to worsen. In addition, 3% of Latvians emphasize economic growth may exceed expectations. 6% say there will be a major drop in economic development. An average of 51% respondents in CEE believe the economic situation will improve in 2016. 34% there will not be any major changes and 15% expect tougher times ahead.

«This year’s results in certain areas are the same as ones from last year’s survey. This means a certain level of security and stability among businessmen of this region. In a time when Europe and Baltic States face geopolitical and economic challenges, certainty that the majority of the region’s businessmen expect healthy economic environment and growth in 2016 comes as good news. Results of the survey also demonstrate stability in employment and even a slight increase in wages in the region in general,» – says Armine Movsisyan, leading partner of KPMG.

Similar to last year, 53% of respondents do not plan any major changes for the number of their employees. An average of 36% of companies plan to hire new employees and only 12% of respondents plan to reduce the number of employees. As for employees, the promise of a rise in wages in 2016 seems rather promising for them – 58% of respondents plan to increase wages of their employees next year.

According to 60% of respondents, in order to remain competitive on local and foreign markets, it is highly important to be able to keep qualified employees. CEOs therefore believe keeping skilled employees will be one of the priorities they will have to focus on in the near future.

45% of respondents claim intense competition is one of the main problems that limit growth of their turnover. 83% of respondents who expect turnover growth in 2016 believe the main factors that contribute to it include higher worker productivity (42%) and rise of local demand (40%).

Tax policy is another topic that worries the minds of businessmen. Governments are expected to provide simplified tax payment and administration procedures: 79% of respondents mention this as the main priority in tax area. Businessmen from this region express their support for an equal personal income tax system with equal rates. Businessmen oppose the adoption of progressive income tax offers.

73% of respondents note that shadow economy is a major problem in their respective country (75% last year). 39% of respondents say tax avoidance is the main reason for concern, followed by envelope wages (23%) and VAT fraud (21%).

Ref: 103.109.109.6792


Leave a reply

Kudors: Baltics should arm themselves with strategic patience

In relations with Russia, Baltics should arm themselves with strategic patience in the next several years, as stated in Latvia’s Foreign Policy Institute’s compilation on Latvia’s external and security policy.

Little precipitation is expected in Latvia this week; frost expected

On Monday, 23 January, weather in Latvia will be dictated by a small low atmospheric pressure area. With that, some precipitation is expected in many parts of Latvia: mostly rain and wet snow. Wind will draw in from the south-west and air temperature will stay within 0° C… +4° C, as reported by Environmental, Geology and Meteorology Centre.

Week in Lithuania. CIA declassifies document on Lithuania’s post-WWII guerrillas

A report about guerrilla fighting against the Soviet occupation after World War II is among hundreds of thousands of declassified documents published online by the United States Central Intelligence Agency.

People no longer believe in their own country, because they associate it with people who make decisions

The biggest threat to Latvia is the fact that society, including state officials, is afraid. People are afraid of change, afraid of voicing their thoughts (thoughts that often do not comply with the politically correct stance), afraid of being misunderstood. Fear makes it harder to develop. It limits people’s internal freedom. Such is the opinion Inga Antane, president of Baltic Association – Transport and Logistics and sworn attorney of Triniti law firm, explained in her interview to Atbalsts.

Expert: «Lithuania’s renewed National Security Strategy is a «hodgepodge»

This week, the Lithuanian Parliament has overwhelmingly approved a renewed National Security Strategy, laying out 14 major hazards and risk factors to national security.

Industry: advertisements contribute the entire economy of the European Union

Every euro invested in advertisement has seven times the influence on a country’s GDP. Every one euro brings seven euros in return to the country’s GDP, as emphasized by Latvian Advertising Association, noting that advertisement sector contributes to employment in all of the European Union.

Six deputies applied with administrative penalties in Saeima’s autumn session

According to information provided to the parliament, six deputies were applied with administrative penalties during Saeima’s autumn session.

Slower economic growth for Estonia forecast – at 2.2% - for 2017

The economic growth of Estonia in 2017 will be slower than previously expected, Swedbank economists have announced lowering their previous economic forecast for the Baltic country by 0.2% to 2.2%.

Latvian and Lithuanian authorities dismantle two criminal groups

Latvian State Revenue Service’s Finance Police has successfully apprehended two organized crime groups that caused significant damage to the state budget in 2015 and 2016 by realizing different VAT fraud schemes.

Estonia to drop special pensions, push forward sweeping pension reforms

The Estonian government has decided to drop special pensions and to push forward with plans regarding other significant changes in the pension system, including tying the retirement age to the average life expectancy.

KNAB performs inspection about Jakrins’ approval in the board of Rīgas satiksme

Corruption Prevention and Combating Bureau intends to inspect if the approval of acting head of Riga City Council’s Transport Department Emils Jakrins in the management board of Rīgas satiksme had any signs of breach of good management principles.

Chinese GDP up 6.7% in 2016

World’s second largest economy has seen a 6.7% growth in 2016, Chinese official data show, which indicate that the gross-domestic-product increase has been slower than the 6.9% seen in 2015 and the slowest since 1990.

Dozens buried in Italy’s avalanche-stricken hotel

Italy has been shaken by a number of earthquakes this week, one of which has triggered an avalanche burying a mountain hotel, where at least two people have been found dead and dozens more a searched for through rubble and snow.

Weekends to experience frost and thaw; drivers urged to be careful

Weather in Latvia will not be stable in the next couple of days – cloudy weather with some precipitation will be mixed with periods of clear sky, according to State Environmental, Geology and Meteorology Centre.

Logistics Industry Council assesses results of 16+1 summit

Experts say container cargoes have the potential to bring major contribution to the logistics sector. With that, LDz Logistics intends to continue organizing the next container train from China, as well as cooperate with partners from Belarus and China in the context of the Great Stone industrial park, as BNN was informed by Transport Ministry’s representative Ilze Greiskalna.

Parliament supports amendments to avoid expensive land-measuring actions

It will no longer be necessary to prepare land border plan for entry of land units in the Land Book. It will help save budget funds, as it will not be necessary to perform land-measuring actions, as reported by Saeima press-service.

CP supervisors concerned about Latvijas Gāze’s contract terms

The Competition Council is concerned about Latvijas Gāze’s behaviour in the process of liberalization of the country’s gas market. Economy Ministry has submitted a draft of the Gas Trade and Use Rules to the Cabinet of Ministers Committee for review.

Germany seeks clarity from Trump’s government, to boost military spending

Berlin has emphasised plans to increase defence spending after facing criticism from upcoming U.S. President Donald Trump on NATO countries not meeting their spending commitments.

Saeima re-elects Elita Krumina as State Auditor

On Thursday, 19 January, the Saeima re-elected Elita Krumina in the post of State Auditor.

Saeima supports formation of aircraft passenger data registry to combat terrorism

On Thursday, 19 January, Latvia’s Saeima approved the Aircraft Passenger Data Processing Law in the final reading. This will form the passenger data registry.

Milk retail price in Estonia reaches 55 cents per litre after to price hikes

After a long period of low milk purchase prices in Estonia, milk retail prices in the Baltic country have increased twice, reaching the point where famers receive just enough to cover milk production costs.

Ventspils Freeport carries Lembergs around with luxurious car worth EUR 156,000

In spite of a 16.44% turnover decline, Ventspils Freeport bought a lux-class Audi A8L W12 for EUR 156,000 last year. It’s only known passenger so far has been the formally suspended chairman of Ventspils City Council Aivars Lembergs, as reported by Latvijas Avīze.

Estonia concludes bilateral defence framework deal with Finland

Estonia and Finland have signed a bilateral defence cooperation framework agreement aiming for closer and more regular cooperation in the field by the neighbouring countries.

Biden: Wealthiest 1% does not pay enough in taxes

The «top 1% is not carrying their weight», outgoing U.S. vice-president, Joe Biden evaluated at the World Economic Forum, insisting the world's wealthiest that they do not pay enough in taxes.

Latvia and Japan sign convention on attraction of foreign investments

In Tokyo, Latvian Finance Minister Dana Reizniece-Ozola and Japanese Foreign Ministry’s Parliamentary Vice-Minister Motome Takisawa signed a convention between the two countries on double taxation prevention for income tax.