bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 23.05.2017 | Name days: Leontīne, Ligija, Lonija, Leokādija

Latvia expected to have the most rapid growth among Baltic States

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU«In 2015, Latvia will have demonstrated the most powerful GDP growth among Baltic States. Latvia will have demonstrated growth equal to about 2.4%. Lithuania’s growth expected to be close to 1.8% and that of Estonia – around 1.3%,» – predicts Nordea Bank.

According to the bank, Latvia’s GDP growth is expected to be 3.0% next year.

«Lately the main growth factor in Latvia has been high private consumption rates. State expenditure is expected to grow as well. One positive tendency has been noted in investments in the past six months. We expect investments to grow even more in 2016. Although currently experiencing growth, export will not be all too great. The main reason for that is geopolitical tension and caution on the global investment front. Product and service import can potentially have a big impact on GDP growth as well. Thanks to residents’ purchasing power, it will continue to increase trade balance deficit,» – predicts Nordea Bank’s economist in Latvia Gints Belevics.

«Stagnant on one side and heated on the other – this probably the most accurate description of the Baltic economy. Post-crisis export growth is weak. Domestic economy continues to heat up. The main factor that influences internal consumption is the rapidly growing wage level. It has already reached 5%-7% in all Baltic States. Adding to that, there is the declining unemployment level, modest inflation and stable consumers’ purchasing power. Lithuania is currently in the lead in terms of private consumption growth (+5.3%), followed by Estonia (+5.1%) and Latvia (+3.4%). It is expected that Latvia’s and Lithuania’s private consumption rate will remain in 2016 and 2017. The situation in Estonia is expected to stabilize,» – the economist explains.

Over the course of the first nine months of 2015, Latvia’s, Estonia’s and Lithuania’s export levels to Russia had decreased by 21%, 38% and 41%, respectively. Export growth had been affected by this as well, especially in Estonia and Lithuania. Up until now, Latvia has not been affected by Russia’s economic recession and applied sanctions much. This explains why Latvia’s economy now demonstrates the best results across Baltic States. It is also expected that negative influence coming from Russia will gradually reduce in 2016. This is primarily because export levels to Russia are currently low. Secondly, it is expected that export volumes to other markets will continue growing 5-7%, which will help reduce the negative influence coming from Russia. With that, and assuming economic sanctions will remain in place, Russia’s negative influence will have significantly reduced by 2016.

«Global economic growth continues, which is accurately demonstrated in USA and EU, which both show signs of recovery. China, Russia, Brazil and other exporting countries, on the other hand, continue searching for new economic growth engines. China’s current market state presents a risk for global economies in 2016. Other risks are related to low price of oil and other resources, as well as the expected interest rate growth in USA. Geopolitical conflicts in Ukraine, Near East and south-east Asia can potentially negatively impact global economy. This is especially true for the European Union, which is weakest when it’s fractured and the strongest when it’s united,» – says Nordea Bank economist Zygimantas Mauricas.

Ref: 102.109.109.6987


Leave a reply

Interest of Indian youth for study opportunities in Latvia increases year after year

Indian Foreign Affairs Minister Mobashar Jawed Akbar emphasized during his meeting with Latvian Foreign Affairs Minister Edgars Rinkevics that India has experienced very rapid economic growth in the past year. He added that the upcoming Latvian-Indian business forum will be an important step towards closer cooperation in economy.

Latvian government reduces administrative burden on amelioration

Latvian government has agreed to support Agriculture Ministry’s prepared amendments to requirements that dictate construction requirements for waterworks and amelioration systems, as well as cadastral rules. Changes were prepared to reduce administrative burden, Agriculture Ministry reports.

Survey: 32% of Latvian residents have no savings

Losing their income, 23% of respondents would not be able to cover everyday expenses, 5% would be able to maintain payments for less than a month and 20% of respondents would be able to cover a whole month’s worth of expenses, shows the survey performed by Nordea on personal finances.

Producer prices in April grew 0.1% in Latvia

Compared to March, the level of producer prices in Latvian industry grew by 0.1 % in April 2017. The prices of products sold on the domestic market increased by 0.5 %, whereas the prices of exported products dropped by 0.2 %.

LSBA: closure of gambling halls is an attempt by officials to promote their image for elections

Latvian Association of Gaming Business asks deputies of Riga City Council to reconsider their actions in relation to the planned decision to prohibit gambling halls in Riga’s historic centre.

More people have moved to Estonia than left it in 2016

13,792 people have emigrated from Estonia in 2016 and 14,822 have immigrated, Estonian statisticians have estimated, concluding that net migration in the Baltic country has been positive for the second consecutive year.

Saeima to discuss the role of the Security Department of the Bank of Latvia

Saeima’s Defence, Internal Affairs and Corruption Prevention Committee will visit the Bank of Latvia on Wednesday, 24 May, to discuss the role of the bank’s Security Department, as BNN was informed by Saeima’s press-service.

Razuks hints healthcare budget’s increase would require new fees

Sides involved in discussions about finding additional finances for healthcare have yet to reach a definite agreement. It is possible there may be a new fee introduced, said Saeima Public Health sub-committee chairman Romualds Razuks told Rīta panorama on Tuesday, 23 May.

Twelve million euros invested in creation of car wash network in Latvia

Wash & Drive opens the largest self-service car wash station in Riga. In cooperation with Citadele Bank, EUR 800,000 was invested in the creation of this seven-box car wash, as confirmed by the bank.

EC: Latvia’s tax system is less progressive than systems in other EU countries

The European Commission recommends Latvia to reduce the tax burden for small wage recipients and move it to other sources that are less impacting on growth and motivate people to pay taxes.

Latvia to lead joint air and land military exercises this year

Annual international military exercises Saber Strike will be taking place in Latvia from 3 – 15 June. Allied troops and armoured vehicles have begun arriving in Latvia for the upcoming exercises, as reported by Defence Ministry.

Tragic blast shakes Manchester, UK

In an explosion, which has occurred in a mass sports and music events venue in the British city of Manchester, 22 people have died and over 59 have suffered injuries.

Experts: Rail Baltica – connection that benefits everyone

The essence of Rail Baltica project is not combating the trends currently present in the world, but rather using them as an advantage, says advisor to the Bank of Latvia Andris Strazds. He adds that more and more economic and social development is centered in large and urban city centres.

Latvian companies ahead of neighbours in organization of business trips

Latvian businesses are more progressive in the organization of business trips than Lithuania. They do, however, spend a lot of money on planning and organizing of those trips. In addition, they also use inefficient financing methods – 20% of employees are forced to pre-finance their business trips from their own pockets, according to results of an international study.

Riga Eastern Clinical Hospital to identify patients using fingerprint data

Riga Eastern Clinical Hospital has introduced biometric data identification system that will be used to identify patients using fingerprint data, BNN was informed by the hospital.

FDC: micro-enterprise tax has created serious defects

The micro-enterprise tax has created serious defects for Latvia’s tax system, said Fiscal Discipline Council chairman Janis Platais in an interview to Latvijas Avīze.

Microsoft software licences cost Estonia millions each year

Estonian ministries and their subordinated institutions pay a total of under five million euros each year in Microsoft software licence fees.

Latvia’s unemployment rate was 9.4% in Q1 2017

In Q1 2017 the Latvian unemployment rate constituted 9.4 %. Compared to the previous quarter, the unemployment rate increased by 0.1 percentage points, whereas, compared to the same period of the year before, the rate reduced by 0.9 percentage points.

Pension expert: how far can index funds root themselves in Latvian pension plans?

Latvian pension plan clients can still pick existing pension plans with sufficiently flexible deposit policy and possibilities to receive consultations. It should be added, however, that pension plans based on index funds can find clients in Latvia for whom low-price guarantees is important the most, Nordea Pensions Latvia board member Ilya Arefjevs predicts.

Latvian Defence Ministry plans the largest tendering process in country’s history

This summer, Latvian Defence Ministry plans to announce the largest tendering procedure in the history of Latvia’s army. It is planned to procure heavy vehicles to transport armoured vehicles and troops. The total amount for the next ten years may reach EUR 200 million, as reported by Nekā personīga.

Study: engaging in business improves satisfaction with life

It has been concluded that psychological aspects are far more important than financial aspects in business operations – stability, family support, exchange of experience and realization of ideas are important for emerging businessmen, as concluded in a study performed by Altum.

Following use of EU funds, demand for loans increases in municipalities

Demand for loans from the State Treasury has increased after use of EU funds became more active, said Kaspars Abolins, chief of State Treasury, in an interview.

Swiss voters decide to move away from nuclear energy

Switzerland has decided to quit nuclear power stations and opt for renewable energy, show the results of a referendum held on Sunday, May 21, where 58% voters backed phasing out nuclear power.

Child vaccination made mandatory in Italy

Reacting to lower child protection against measles, the government of Italy has decided to make vaccination against 12 illnesses mandatory for children before they start going to state schools.

Deputies to decide on prohibiting gambling in Riga’s historic centre

On Monday, 22 May, deputies will discuss the matter on sorting out Riga’s historic centre. It is stated in new territorial plans that it will be prohibited for gambling halls to be located in this area.

Newest comments