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Wednesday 19.09.2018 | Name days: Verners, Muntis
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Citadele Index: businessmen are more optimistic about economic growth

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUAfter a four-year gap, optimism has been noticed in all of Latvia’s business sectors. For the third consecutive quarter Citadele Index value exceeds 50 points. Businessmen are also positive about the country’s economy and their own finances, according to the final Citadele Index study for 2017.

In addition, experts emphasize that economic breakthrough is the right time for reasonable investments.

The greatest degree of optimism is noticed among construction (52.84 points) and production (52.35 points) industry businessmen, as well as businessmen working in trade (51.33 points) and services (50.94 points). The mood has improved the most among businessmen working in the trade sector – by 2.40 points.

«Latvia’s economic development has managed to exceed even the most optimistic predictions. 2017 can be considered as one of the most successful in the post-crisis period. Citadele Index study shows that businessmen are gradually becoming more optimistic. We can identify the main reasons for potential GDP growth,» says Citadele Bank economist Mārtiņš Āboliņš.

«As the main growth factors, we can mention the finally commenced use of EU finances. As a result, construction sector has grown by an astonishing 25% in Q3. In addition, positive trends are also noticed in the global economy. Thanks to that, the industrial sector has grown by 8%. Stronger growth in trading adds to those factors,» Āboliņš explains.

Looking at businessmen’s mood in regions, it is concluded in the survey that the most optimistic businessmen are found in Riga (52.46 points) and Kurzeme (52.19 points). Businessmen are less optimistic in Vidzeme (51.93 points). The index in Zemgale and Pieriga only slightly exceeds 50 points, and their mood is considered cautiously optimistic. The mood of businessmen in Latgale remains critical (47.31 points).

In addition, businessmen’s opinion of the general economic situation in the country has improved during the quarter. For the first time in three years businessmen have become optimistic about the economic environment.

Economic breakthrough – the perfect time for investments

Experts note that results of Citadele Index survey are but one of the indexes that show economic recovery.

«Every businessman should consider using economic growth for their company’s advantage. Now is the perfect time for investments, because growth is noticed in Latvia’s and world economy,» says Citadele board member Santa Purgaile. She invites businessmen to evaluate beneficial economic conditions, their readiness to invest, and their company’s strategy and financial health.

Data from Altum finance institution also shows that investments are topical for businessmen. Nevertheless, there is still unused potential there. Altum board member Inese Zīle invites businesses to develop by using funding from banks and state support.

«In Q3, the volume of guarantees in Altum portfolio had exceeded 100 million margin, which the historic peak. In addition, the volume of guarantees for newly issued loans is with stable growth outlook. This growth is expected to continue next year. We see that businessmen feel more stable, invest more readily. They also use state support opportunities more often,» Zīle says.

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