bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 12.12.2017 | Name days: Otīlija, Iveta

Nordea: Baltic State face a real obstacle race

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU«In addition to uncertainties with Brexit and the current geopolitical situation, obstacles that we see in global growth and weak Eurozone growth outlooks serve to limit exports and investment-focused growth opportunities in Baltic States,» – says Nordea Bank’s economic expert in Latvia Gints Belevics.

«Although consumers remain immune to the unfavourable external environment, without faster investments to improve export potentials, we can expect a decline in growth potential in the medium-term perspective. Weak growth indexes in Estonia, Latvia and Lithuania will reach 2.6%, 2.8% and 3% in 2017. Under conditions of increased uncertainty, we can expect a slight increase of inflation,» – says the economic expert.

«The open economy of Baltic States will face many major obstacles associated with weak global growth indexes and slow growth outlooks in developed countries. Along with the growing geopolitical uncertainty in Europe, it is not possible to predict growth for export revenue and indexes associated with them. Domestic consumption remains the main driving force in Baltic States,» – says the bank’s expert.

«Annual growth has become slower in developed countries, reaching a mere 1.5%. Unfortunately, outlooks for the next year predict insignificant cyclic recovery. Slow growth of productivity and wages in the context of continued low rates shows that growth indexes remain under influence of a number of structural factors (which is typical for secular stagnation). In addition, the slow economic growth in China and its transfer from a production superpower to more of a service-oriented economy will be considered a significant trend that will affect the revenue of exporting companies, even such far-away countries like Baltic States. In this context it should also be added that growth of global growth and trade indexes at 3%, in addition to moderate product price rise, can be considered a new norm we should all get used to. We expect that, similar to Eurozone, Baltic States will continue experiencing cyclic economic recovery, which is mainly driven by private consumption and powerful housing market support,» – Belevics continues.

According to him, growth balanced by domestic factors in Baltic States will be associated with powerful labour market. It is expected that the unemployment levels in Latvia and Lithuania will have declined by 2.6% and 1.1% respectively in 2015-2018 period. In Estonia, unemployment may rise 3% in spite of stable labour force demand.

«As the consumption boom settles down, employment growth calms down and inflation grows, Baltic States will be forced to run a true obstacle race to increase revenue from exports under conditions of macroeconomic obstacles. The main objective on the road to raise productivity to average levels of Eurozone should be the investment of resources into knowledge-based dynamic economy and structural reforms on the labour market,» – said the economic expert.

Ref: 102.109.109.6798


Leave a reply

Countryside tourism may be threatened by unfair competition

Countryside tourism businesses are threatened by unfair competition and growing bureaucracy, as emphasized by Latvian Countryside Tourism Association Lauku ceļotājs after discussing this season’s results at four regional business seminars.

Estonia fights marginalisation pushing for relocation of 13 institutions to regions

As Estonia seeks to relocate part of government agencies out of the capital Tallinn, Estonian government ministers have been reminded that by the middle of January an action plan is required from them on the relocation of the central offices of 13 Estonian state institutions.

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

The 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.

Heavy snow in Western Europe causes transport troubles

Heavy snow in Benelux countries, as well as in Germany and the UK has prompted hundreds of flight cancellations, while car accidents have caused traffic jams on roads.

Amnesty International: EU governments know about migrant torture in Libya

Governments of European Union member states are aware of torture and abuse of refugees and migrants in Libya, Amnesty International has stated, insisting that trying to reduce migration, the EU is actively financially supporting a «system of abuse and exploitation» on the Mediterranean coast of Libya.

State Environment Service applies fine to Nordic Recycling for unprocessed waste

Latvian State Environment Service (SES) has finished reviewing reports submitted by Nordic Recycling on waste processing system’s function last year. The conclusion has been made that Nordic Recycling electrical appliances processing system does not comply with requirements set by regulations.

SEA: unemployment in Latvia reached 6.7% in November

The registered unemployment level in Latvia grew to reach 6.7% in November, which is 0.1 percentage points higher than in October, according to information compiled by the State Employment Agency (SEA).

Riga’s Vice-Mayor denies Ainars Šlesers acted as his «task master»

Vice-Mayor of Riga and chairman of Riga Freeport Andris Ameriks denied during a meeting of the Saeima’s Investigative Committee on Monday, 11 December, that former politician Ainārs Šlesers acted as his «task master».

Foreign trade turnover in Latvia up 10.3% in October

In October 2017, Latvian foreign trade turnover amounted to EUR 2.31 billion, which at current prices was 10.3 % more than in October 2016, of which the exports value of goods was 9.7 % and imports value of goods was 10.9 % higher.

Businessmen: labour force deficit already exists; foreign students should be integrated in labour market

61.2% of businessmen in Latvia already experience problems with finding qualified workers. More than one-fifth of them expect difficulties in the near future. 79.7% of interviewed entrepreneurs said they support the idea of integrating foreign students in Latvia’s labour market, as concluded in data from a survey performed by Latvian Chamber of Commerce and Industry (LCCI), interviewing 225 businessmen.

Commissioner: EC offers support to member states that wish to join Eurozone

European Commission offers additional support to EU member states that wish to join Eurozone, says EC Vice-President for Euro and Social Dialogue Valdis Dombrovskis.

Estonia to continue five school break schedule until 2021

Estonian Ministry of Education and Research has arrived at and published the dates of school breaks for three school years to come and has promised uphold its new system of five breaks instead of the historical schedule of four.

How much does violence against women cost Latvia?

The costs associated with partners’ violence against women in Latvia reach EUR 442 million a year, says Welfare Ministry’s Child and Family Policy Department’s senior expert Viktorija Boļšakova with reference to data from European Institute for Gender Equality (EIGE).

De Facto: company responsible for Rail Baltica project involved in a fraud case

The company owned by the new head of Eiropas Dzelzceļa līnijas Andris Linužs is involved in a criminal process regarding fraud and document forging when receiving state funding for procurement of wind turbines. The committee that picked Linužs for the important post was not aware of this fact, as reported by De Facto programme of LTV.

French salmonella outbreak prompts recall of Lactalis baby milk formula

Baby milk powder producer Lactalis in France has made an international recall of its produce marketed globally under the Milumel, Picot and Celi brands after a salmonella outbreak in France.

Mayor of Riga: New Hanza business quarter to improve city’s development

During his visit to New Hanza business and residence quarter, Chairman of Riga City Council Nils Ušakovs said that every project of this kind improves the quality of life in the city, create new space for apartments and offices, jobs and public-access buildings, as well as pull up the quality of life in surrounding territories.

«European Oscars» dominated by satire drama «The Square»

The awards of the European Film Academy have been given to laureates at a ceremony in Berlin on December 9, where the joint production of Sweden, Germany, France and Denmark «The Square» dominated with six awards.

7.3% less cigarettes exported from Latvia in nine months of 2017

In the first nine months of 2017, roughly 1.9 billion cigarettes were exported from Latvia to other countries, which is 7.3% less when compared with the same period of 2016, according to State Revenue Service’s data compiled on excise goods circulation.

Weather in Latvia to be windy; air temperature to reach +9° C

On Monday, 11 December, air temperature in Latvia will be at -3° C… +2° C. It is expected to be somewhat warmer along the coast, however. Some precipitation will be present, as reported by State Environment, Geology and Meteorology Centre.

Ukrainian police detains Georgian ex-President Saakashvili

Police in Ukraine has over the weekend detained the ex-President of Georgia Mikheil Saakashvili on the same week, when a crowd of his supporters released him from a police vehicle.

Week in Lithuania. Vilnius mayor apologises for poor performance of road services

Vilnius Mayor Remigijus Šimašius has admitted that the road services of the Lithuanian capital city were not efficient enough in their response to the weather conditions, apologising to Vilnius residents for the inconveniences they encountered due to traffic interruptions.

BNN summary of the week: kebab industry’s fears, insiders in anti-corruption bureau, and Latvia’s crumbling roads

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

Farmers Saeima: if Latvia does not ease rules for guest workers, there won’t be any workers

During a meeting of the Food Industry Council, the biggest discussions were raised about the matter regarding the lack of labour force in agriculture and food processing companies. On top of that, farmers are confused over Economy Ministry’s proposed solution, saying that it is too far from reality.

Ex-deputy chief of anti-corruption bureau: I have no doubt the prime minister and president dance to Lembergs’ tune

«For ten year now Aivars Lembergs has been under the ban to perform duties as chairman of Ventspils City Council. And for the same period of time Lembergs and state officials have been ignoring this ban. Environment Protection and Regional Development Minister Kaspars Gerhards, who is responsible for supervising municipalities and is very well-informed of the truce power centre, which, unfortunately, is not Latvian citizens as it is stated in the country’s Constitution, goes to visit Lembergs, not Ventspils. He does that to demonstrate his fealty to the ruler as he would if we lived in the Middle Ages,» says politician from New Conservative Party, councillor of Riga city Council and former deputy chief of Corruption Prevention and Combating Bureau Juta Strīķe.

Average consumer price level up 2.7% in Latvia

During 2017, the average level of consumer prices rose by 2.7 % when compared with last year. Prices of goods grew by 2.7 % and prices of services by 2.9 %.