Latviski English По-русски
Tuesday 25.10.2016 | Name days: Beāte, Beatrise

Latvia’s GDP growth predicted to be 3.2% in 2016

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RULatvia’s economic growth has been one of the most rapid among European Union member states in recent years. GDP growth rate was 4.4% in 2011-2014. In 2015, in spite of geopolitical instability, Latvia’s GDP continued to grow and reached 2.8%.

Latvia’s economic development is closely tied to global developments. The situation on Latvia’s most important export market – Europe – is gradually improving. Exporters who mainly focus on eastern markets are affected by the poor economic situation in Russia. In spite of the fact that the geopolitical tension makes it difficult for Latvia’s economy to grow, GDP growth may turn out faster than the year before and reach 3.2%, as reported by Economy Ministry.

For a more rapid improvement of competitiveness of Latvian companies, it is first necessary to find effective ways of enhancing knowledge in economic development, raising competitiveness of exporting companies, raising productiveness, innovations and their capacity, as well as continue the process of reformation to improve the business environment, notes the ministry.

The 2014-2020 EU fund planning period opens the way for investing EUR 4.4 billion into Latvia’s growth and development. Economy Ministry’s activities will have access to only approximately EUR 770 million for specific investments into modernization and industrialization of Latvia’s economy.

To encourage entrepreneurs to invest in new, lucrative products and services, it is necessary to preserve existing and create new tax stimuli. It is planned to develop a legislative draft to support beginner entrepreneurs with a special tax regime in early stages of business development, as well as add amendments to regulations in regards to the adoption of a special tax regime for small and micro-enterprises with low annual turnover, the ministry notes.

In the latest Doing Business study by the World Bank, Latvia was put on the 22nd spot among 189 countries. The World Bank has recognized Latvia as one of the TOP 30 leaders that have successfully realized reforms to improve the business environment. The future of Latvia’s business environment will depend on the quality and realization speed of reforms. Latvia’s goal is to be in the TOP 10 among countries of the world in terms of positive business environment rating, notes the ministry.

Over the course of 2015, Latvian government reviewed regulations of the Construction Law in 2015 and continued working on construction rules. The Construction State Control Bureau also started working that year.

Integration of Latvia’s energy market into Europe continues. 2015 was the first year under conditions of free competition for the country’s energy market. Further liberalization of the gas market remains on the government’s agenda. The Cabinet of Ministers has viewed the amendments to the Energy Law, which the Saeima plans to approve at the beginning of 2016.

In addition, improvements to Latvia’s energy market regulations continue and work continues to develop the electrical energy and natural gas infrastructure to help further enhance the country’s energy security and diversify energy supplies.


Leave a reply

BATL: industry doubts economic justification of electrifying Latvia’s railway network

The project for the electrification of Latvia’s railway network is currently under review by Finance Ministry, Edgars Putra – the ministry’s parliamentary secretary – told Krustpunktā programme of Latvijas Radio on Tuesday, 25 October.

In pictures: France evicts migrants from notorious Jungle tent village

In northern France, near Calais, authorities have commenced transporting migrants away from Jungle, the tent village, where several thousand migrants have been living for years.

Payments of benefits to be stopped for refugees who left Latvia

On Tuesday, 25 October, the Cabinet of Ministers supported the legal draft detailing amendments to the Asylum Law, which were developed to enhance Latvia’s asylum provision system.

Government urged to declassify Citadele Bank’s sale

Saeima’s Public Expenditure and Audit Committee has sent a letter to the Cabinet of Ministers, requesting the latter to lift restricted access status on all information related to the sale of Citadele Bank.

Number of black stork chicks declined significantly this year

The small amount of precipitation has negatively impacted the feeding and nesting of black storks in Latvia, as concluded by the Nature Conservation Agency, which had performed annual monitoring of endangered black storks in cooperation with Latvian State Forests this year.

Estonia not willing to ban fur animal keeping and skinning

Reacting to a call from animal rights activists, Estonian environment and rural affairs ministries have found that there is no reason to prohibit fur farming in the country.

IMF on Estonia: Increase in wages could harm exporter competitiveness

Estonia should take care of rising imbalance of wake increase and lagging productivity to ensure Estonian exporters can be profitable in foreign markets, the International Monetary Fund evaluated.

Study: Gender gap in alcohol consumption smaller as young women drink more

By comparing the drinking habits of four million people born between 1891 and 2001, it has been found in a study that the generations living today have reduced the likelihood of men consuming more alcohol in unhealthy amounts than women.

Criminal process launched in relation to K.Barona Street repairs

Corruption Prevention and Combating Bureau has launched a criminal process in relation to possible forging on documents in the procurement process associated with the reconstruction of K.Barona Street in Riga.

Sirens to be tested across all of Latvia

On Tuesday, 25 October, the State Fire and Rescue Service will conduct a three-minute test of emergency sirens. The test is scheduled for 15:00. It will help determine the function of the system and identify any technical problems.

Belgium bocks CETA, but EU and Canada remain hopeful over signing

The European Union and Canada have stated they still hope to sign their bilateral free trade deal, after the Belgian federal government clarified that it cannot ensure the backing of three regional bodies for the agreement.

This week to be rich with precipitation and cold in Latvia

The anti-cyclone that dictated weather in Latvia over most of October is gradually moving east. It will be replaced by a small and active cyclone. With that, meteorologists expect often precipitation in Latvia this week.

Experts: Russian warships on their way to Baltic Sea

Movements of warships in the Mediterranean Sea and the North Sea, as well as internet comments show that two Russian nuclear-equipped corvettes are currently on their way to the Baltic Sea, even though official reports suggest the opposite, as concluded by experts of Atlantic Council think tank.

Police launches disciplinary cases in relation to supply of inappropriate vehicles

Multiple disciplinary cases have been launched in relation to the supply of vehicles non-compliant with requirements of State Police. In addition, Internal Security Office has been asked to assess the responsibility of officials responsible for the procurement.

Latvia begins ratifying Paris agreement on climate change mitigation

On Tuesday, 25 October, Latvian Cabinet of Ministers plans to review the legal draft ‘On United National Organization’s Framework Convention on Climate Change’ prepared by the Environmental Protection and Regional Development Ministry.

Belgian Wallonia rejects EU ultimatum over EU-Canada free trade deal

The Belgian region of Wallonia has on October 23 rejected an ultimatum from the EU to quit objecting to the EU-Canada free trade deal in 24 hours.

Estonia increases tax revenue by 6.8%

Estonia’s tax collector has in the first nine months of 2016 received 6,8% more revenue that in the same period in 2015.

Latvia’s population declined by 4,636 this year

In the first nine months of 2016, Latvia’s population decreased by 4,636 persons. This is because the number of deaths exceeded the number of births. In the corresponding period of 2015, population decline constituted 4,751 persons.

PUC: Latvijas Gāze remains obligated to provide third parties with access to gas infrastructure

Considering that the Administrative Regional Court has declined LG’s request for temporary solution, the company remains obligated to provide third parties with access to natural gas transmission infrastructure.

Estonia to combat large-scale imports of alcohol from Latvia

Estonia’s Tax and Customs Department plans to equip all border control checkpoints with surveillance cameras to record car registration numbers to thereby better combat large-scale imports of alcohol from Latvia.

Latvians the most satisfied with wages in Baltic States

Compared with other Baltic States, Latvia has the largest number of employed people who believe they receive adequate pay for their work. 39% of employed people in Latvia believe they are paid adequate wages, as well as 34% in Estonia and 19% in Lithuania.

Farmers-greens announce victory in Lithuanian Seimas election

The Union of Peasants and Greens claimed victory in the Lithuanian Seimas election after the second round of the vote was held on October 23.

Finance minister blocked SRS candidate Nikitins' approval to FCMC

Although the personnel selection process for the approval of the new head of the State Revenue Service has defined a possible candidate, specifically high-rank official of the Bank of Latvia Andris Nikitins, his chances to win are reduced by the decision made by Finance Minister Dana Reizniece-Ozola to pick the best candidate among the other candidates.

Week in Lithuania. Lithuania unveils new tourism brand

Lithuania will until 2020 use a new tourism brand to market itself to foreign tourists. The new brand, unveiled by the State Tourism Department on October 19, features the words «Lithuania. Real is beautiful» printed on a pastel mint postage stamp

Economic Diary of Latvia. The richer the people, the better the security

A very interesting matter was voiced in Latvia this week. The matter addresses the link between the overall level of welfare of the country’s residents and the country’s national security.

Newest comments