bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 23.01.2018 | Name days: Strauta, Grieta
LatviaLatvia

SEB: Eastern Europe not to face sharp inflation climb

FaceBook
Twitter
Draugiem
print
(+1 rating, 1 votes)

Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RUIt is expected overall inflation indicators in many of the Eastern Europe countries will slow down during the following two years. However, especially this year, the pace of inflation climb will not halt, due to a number of tax rises and administrative price gains.

Estonia and Lithuania will keep registering moderate inflation climb, due to growing consumption following the severe economic downfall. No sharp inflation increase expects the Eastern Europe countries, SEB analysts conclude in the latest report on Eastern Europe economy.

Eastern Europe economies will gather strength in 2011-2012, despite most of them will go on with fiscal consolidation measures. Competitive export will still be the key driving force of the economy. At the same time, also consumption and investments will resume. Eastern Europe was one of the regions severely hit by the global credit crisis, boosted by too many loans in foreign currencies. First signs of private consumption recovery appeared already in 2010, along with a rise in the actual remuneration, labour market stabilization and changes in crediting conditions. Regarding future, smaller unemployment, bigger salaries and crediting sector recovery will promote consumption growth.

Households purchasing power will be directly affected by rapid inflation climb, boosted by energy and food price gains. It is expected inflation will reach its peak already this year, except for Estonia and Lithuania, where it will keep surging also in 2012. Most of the countries will still work on reducing their budget deficit. Their government debts will grow slightly. However, they are moderate, compared to many Western Europe countries.

According to forecasts, Latvian GDP will reach 4% and 4.5% in 2011 and 2012. The economic recovery will not be stable, due to the ongoing consolidation. Estonian GDP will amount to 5% and 4.5% in 2011 and 2012, with growing exports and gradually increasing domestic consumption. The severity of the austerity measures will retreat. Lithuanian economy will grow 4% and 4.5% in 2011 and 2012, respectively. Export will still be the key driving force of the economy, also supported by other sectors. Emigration and lack of qualified work force will impede positive tendencies.

Russian growth is to exceed 5% in the following two years time, ensured by high raw material prices. While more active investments will determine economic stabilization in Poland, which will have to cut its budget after the Parliament elections in autumn in order to reach the state debt limits. Similalry, it is forecast interest rates will go up to strengthen the zloty. Ukraine will grow 4.7% this year, propelled by two of its leading exports – steel and agricultural products. However, the International Monetary Fund’s strict regulations are to limit the growth.


Leave a reply

  1. gil says:

    Well, the forecasts do set some limitations, but overall they are quite positive.

    Thumb up 0 Thumb down 0

Latvia shares experience in civil rights reforms with Uzbekistan

Uzbekistan is one of Latvia’s priority countries for development of cooperation. Considering Uzbekistan’s launched reforms for state administration, Latvia is ready to continue offering support and sharing experience, says Foreign Ministry’s special assignment ambassador Igors Apokins.

Estonian state rail cargo company worked with million-euro losses in 2017

Estonian state-owned rail cargo carrier EVR Cargo concluded the year 2017 with net losses of 1.2 million euros, but managed to earn a million euros in from October to December 2017.

Alcohol industry to adopt social responsibility symbols on labels

More than 60% of all labels of wine and other strong alcoholic beverages purchasable in Latvia will be added with a special social responsibility symbols, reminding residents of responsible consumption of alcohol, BNN was informed by Latvian Alcohol Industry Association (LAIA).

ManaBalss.lv initiative «On saving Agenskalns market» submitted to Riga City Council

An initiative started by Anda Baidekalna «On saving Agenskalns market» has been submitted to Riga City Council for review. More than 2,000 people signed in favour of this initiative on ManaBalss.lv portal. Now Riga City Council will have to decide on approval of this initiative and develop a plan for development of Agenskalns market to preserve its functionality.

Estonian construction price rise influenced most by higher labour costs

Estonian construction price index grew by 1.5% in 2017 aligned with the average of 2016, Estonian statisticians calculated.

Latvian Economy Ministry proposes self-regulatory measures for postal sector

The problem with postal items lacking addresses can be resolved using self-regulatory measures in the postal industry, as mentioned in Economy Ministry’s prepared report on new measures and proposal for mechanisms to help make the work performed by the postal sector more efficient.

Venice tourists stunned over 1 100-euro restaurant bill

The leadership of the picturesque Italian town of Venice has pledged to ensure justice after four Japanese tourists complained of having been handed a 1,100-euro bill for steaks, water, service and a plate of fried fish.

Ratification of Istanbul Convention falls through in Latvia

Unity is the only one of the coalition parties in Latvia that has expressed support for the ratification of Istanbul Convention so far, politicians say.

Spain sees Puigdemont's trip to Denmark as provoking his own arrest

A judge of the Spanish Supreme Court has blamed Catalonia's former President Carles Puigdemont of seeking to provoke his own arrest by visiting Denmark from his country of exile, Belgium, as the politician faces charges carrying a possible prison sentence of up to 30 years.

Latvenergo: Latvia is the largest energy exporter in Baltic States

Latvia continues exporting electrical energy produced in the country – as of Monday, 22 January, it was 832 MW. Especially intensive energy production is recorded for Daugava’s hydro-electric power plants and Riga’s CHP plants. The largest import volume is registered for Lithuania, to which the amount of exported energy equals the amount consumed in Latvia, Latvenergo explains.

LALRG secretary general: we have to reduce gap in quality of life for EU citizens

Ever since Latvia joined the European Union, its population has declined 14%. The most significant decline was caused by the departure of residents of working age to other EU member states. Because of that, the population in eastern regions of Latvia has declined 23%.

Czechs up for close race in this week's presidential run-off

As the Czech Republic nears the second round of its presidential election this weekend, sociologists estimate that the pro-Western academic Jiří Drahoš enjoys a somewhat larger support than the incumbent Miloš Zeman, who easily won the first round.

Producer price level in Latvia’s industry up 3.1%

Compared to December 2016, the level of producer prices in Latvian industry rose by 3.1 % in December 2017. Prices of products sold on the domestic market rose by 3.0 %, while prices of exported products went up by 3.3 %. Prices of products exported to euro area countries grew by 3.8 %, whereas prices of products exported to non-euro area countries rose by 2.9 %.

MEP: an even greater UGF dominance would slow down Latvia’s development

If the Union of Greens and Farmers (UGF) gains an even greater presence in the upcoming Saeima elections, Latvia’s continued development would suffer, said member of the European Parliament Artis Pabriks in an interview to 900 seconds programme of LNT.

Tax reform challenge in January: labour tax recalculation

2018 commenced for Latvia with a historical tax reform and conceptual changes, significantly affecting everyday work performed by businessmen, employers and accountants. One of the changes financial specialists have to remember when calculating wages for January is the one for personal income tax, which also includes changes for state social insurance fees and solidarity tax, BNN was told by accounting experts.

Total tax debts in Latvia reach 1.217 billion euros at beginning of 2018

At the beginning of the year, total tax debts in Latvia, including existing debts, halted debts and debts with extended repayment debts, reached EUR 1.217 billion, which is 3% less when compared with the previous month, as reported by the State Revenue Service.

Estonia emphasises animal welfare as demand for animal food products grows

Although the demand for food products from animals is increasing, attention should be paid both animal welfare and sustainability in agriculture, Estonia's Minister for Rural Affairs Tarmo Tamm has stated.

Latvia hopes to recover its status as a country free of swine fever

There is hope that Latvia may yet recover its status of a country free of swine fever, says Food and Veterinary Service’s (FVS) Animal Infections Monitoring Department lead expert Mārtiņš Seržants.

Estonia prepares to inform population of actions in case of emergency or war

Estonia is preparing a brochure on how its population should act in case of major crisis or war.

De Facto: international lawsuit against Latvia is associated with infamous Winergy case

Norvik Bank’s lawsuit against Latvian state in the international court of arbitration in Washington is associated with Winergy wind park business, as reported by De Facto programme of LTV. The bank has yet to announce the amount of money it wishes to enforce from the state

German Social Democrats vote to U-turn on coalition talks with Merkel's conservatives

In Germany, where four months after its federal parliamentary elections there is still no government, the Social Democrats have voted to enter coalition talks with the conservatives led by German Chancellor Angela Merkel.

Weather in Latvia to become warmer this week; thaw to settle in

Weather in Latvia will be dictated by an anticyclone at the beginning of the week. Precipitation is only expected in some areas, mostly in the north. The sky will be cloudy for the most part. Still some sun is expected every now and then, as reported by State Environment, Geology and Meteorology Centre.

Turkey crosses into Syria to attack Kurdish militia

Turkey's ground forces have entered the territory of neighbouring Syria strengthening Ankara's offensive to push Kurdish militia, considered to be terrorists by Turkey, away from the border.

Week in Lithuania. Fake news on Lithuanian Defence Minister planted on news portal

The Tv3. lt news website was hacked on Thursday, January 18 - a fake news story about Lithuanian Defence Minister Raimundas Karoblis was posted claiming that Karoblis allegedly harassed Ridas Jasiulionis, a journalist at the Žinių Radijas radio station, and admitted being gay.

BNN summary of the week: final report on Oligarchs case and ordered attacks on e-health

BNN offers a summary of this week’s topical news in a variety of categories: Change; Fight; Attack; Growth; Decline; Opinion; and Study.

Would you be ready to boycott something in your life?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: