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

SEB: to reach new export peaks, state support has to be increased

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn August, Latvia exported goods worth a total of EUR 868.6 million. External trade deficit was EUR 177 million. Import volumes have declined 0.7%, whereas exports have jumped 9.9% over the course of the year. This may mean a recovery for exports.

But there is currently no reason for such conclusions, because rapid changes over the course of the year was only possible because of the weak growth in 2015, SEB Bank economist Dainis Gaspuitis comments data released by the Central Statistical Bureau of Latvia.

«Of course, exports of grains, iron, steel and transports have grown over the course of the year. Exports of wood materials continued growing as well, but much more slowly. Exports of oil products, mechanisms and machineries have decreased. Exports of electrical appliances and electrical devices had contributed to last year’s export growth. Exports of those products have declined this year, however. This could be because of changes to re-export regulations and changes to tax legislation (reverse VAT). If it is so, this negative influence should be taken into account. Exports of alcoholic beverages have declined also. In previous years, those products were the main engine for export growth. Changes in Russia’s market will continue weakening this sector. Its recovery may turn out very complicated for exporters who focus on Russia,» – explains the bank’s expert.

According to him, «export volume decline is largely influenced by the negative impact from re-exports, which is only increased by the decline in purchasing power on the Russian market, sanctions and their influence on satellite markets. This only serves to complicate the already unfortunate external trade environment even more. With that, this year’s export volumes will be lower than expected. Conjuncture will improve slightly next year, but it will not provide the desired breakthrough because of lasting low investment activity in export sector. Negative influence on total volumes will form in the next several months, resulting in lower production output.»

«Negative influence will continue in the next several years because of reduced re-export volumes. The decline will increase because of Russia’s transit policy. This is why even though tools to assist export growth are available, it is necessary to increase state support to reach new export peaks,» – Gaspuitis concluded.


Leave a reply

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.

Four teachers in Latvia are paid wages that exceed EUR 2,000

In September 2016, the biggest teacher’s salary paid in Latvia with bonuses was EUR 2,260.27, as LETA was informed by Education and Science Ministry.

Producer price level down 1.6% in Latvia’s industry

Compared to August, the level of producer prices in Latvian industry increased by 0.3% in September 2016.

SRS Tax Debt Enforcement Office director Cerneckis steps down

On Friday, 21 October, director of Latvian State Revenue Service’s Tax Debt Enforcement Office Kaspars Cerneckis submitted his resignation.

Bookmakers predict Sadurskis’ remainder in his post for the rest of the year

Latvian Education Minister Karlis Sadurskis has been forced to distance himself from political opponents and teacher trade unions because of criticisms regarding reduced wages caused by the teachers’ pay reform. Nevertheless, political support will keep the minister in his post, bookmakers believe.

Lithuanian military discussing deployment of long-range missiles

A senior Lithuanian military officer has on October 20 stated that Lithuania is considering the deployment of long-range missiles in the country in the framework of hosting a multinational NATO battalion in 2017.

Ukraine in joint declaration with Lithuania, Poland condemns WWII aggressors

The Vekhovna Rada of Ukraine has this week adopted a joint declaration with Lithuania and Poland attaching responsibility for World War II to Germany, the USSR and the international community’s «appeasement policy».

Saeima Budget Committee conceptually approves 2017 budget project

On Thursday, 20 October, Saeima’s Budget and Finance Committee supported the state budget project for 2017, the medium-term budget contents for 2017, 2018 and 2019 and 57 legal drafts associated with the project.

Facebook sorry for removing breast cancer informative video

Facbook has expressed apologies for the removal of a breast cancer informative video shared on the social network by a Swedish foundation.

Two of the last twenty three first refugees have left Latvia

The last two of the first twenty three refugees resettled in Latvia have left for Germany, as reported by LTV.

Newest comments