bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 16.07.2018 | Name days: Hermīne, Estere
LatviaLatvia

Economic Diary of Latvia. Exporters set a historic record

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn spite of the prolonged political conflict and unstable external economic environment, exports of Latvian goods demonstrated the most rapid climb since 2011. In addition, the value of exported goods has exceeded EUR 1 billion, reports Finance Ministry.

Foreign trade turnover has increased 6.7% this October, demonstrating export growth of 15.3% and import reduction of 0.2%. In actual figures export growth reached EUR 1.053 billion and that of import – EUR 1.135 billion.

Electrical equipment and appliances sector demonstrated a significant increase – 29.9%. This was mostly provided by exports of telephones (simultaneous increase of imports in this position demonstrates the growth of re-export). The alcoholic and non-alcoholic drinks segment demonstrated export growth of 41.8%. Because of good harvest this year, exports of grains from Latvia increased by 28.6%.

Observers note that exports have increased to and from CIS countries.

What is surprising is the fact that export of products to Russia has increased 7.8% in spite of the embargo and decline of the value of the Russian rouble.

The end result was mostly influenced by export growth of strong alcohol. Russia remains Latvia’s second most valuable partners. With a market proportion of 11.9%, it is second only to Lithuania.

Exports of products under embargo in Russia continue to decline. Compared to the same period of last year, exports of fish products declined by 40% in October; exports of dairy products declined by roughly a quarter.

Transit is one of the key positions of Latvia’s exports, and Russia remains the main partner in this area.

Frightening predictions from auditors

If the transit of Russian products ceases in Latvia, the country’s railway industry will lose 43.7 million tons of cargoes, as noted in the survey carried out by EY. As comparison: Latvijas dzelzceļš plans this year’s cargo turnover at 45 million tons.

Results of the survey were presented to members of Latvian Transit Business Association on December 9th. In the event of the worst case scenario, Latvian enterprises would lose turnover worth EUR 1.3 billion, the country’s GDP would decline 1.7%, employment would decline by 1.1% and tax revenue would decline by 2.4%.

Experts have also calculated losses should Russia cease transit of oil and oil products – Latvia would lose 18.8 million tons of cargoes and turnover of enterprises would decline by EUR 803.8 million. The impact on GDP would be equal to 1.1%, on employment – 1% and on tax revenue – 1.5%.

Head of Latvijas dzelzceļš Ugis Magonis admits the severity of this perspective and criticized Latvian Foreign Minister Edgars Rinkevics for ‘unreasonable policy’, including the sudden decisions to add several Russian citizens to the list of personae non gratae of Latvia and the agreement to join sanctions imposed by USA and the EU on Russia’s oil industry.

According to Magonis, LD plans to conclude 2014 with turnover of 45 million tons. The company plans to cease all of its sponsoring programmes in culture and sports.

Discounts to help attract Belarus

A memorandum has been signed with Belarus in regard to the increase of exports of oil products from Belarus through Latvian ports, as reported by Latvian Transport Ministry.

According to the document signed in Minsk, Belarus plans to increase exports of its oil products using Latvia’s railway infrastructure and Riga Freeport. Businessmen from Belarus will also take part in the development of the oil-handling terminal in Riga, as reported by the ministry.

In order to contribute to the development of long-term relations with neighbours, Latvijas dzelzceļš promises to maintain or even reduce transport costs in the next 3 to 5 years.

According to the former Transport Minister of Latvia Aivis Ronis, who led the talks in Minsk, this means several million tons of cargoes in possibly ten years. According to Ronis, it is planned to increase the volume of exports of other products from Belarus in the future.

Food product prices to reduce

Reduction of prices is caused by the decline of prices on oil and the largest global stores of grains in this century, believes Director of Agricultural Market Promotion Centre Inguna Gulbe.

‘If there are no changes to the geopolitical situation, climate and healthcare, prices may reduce even more in the beginning of next year. Prices have reduced quite significantly on the main production resources – fuel and grains. This means meat products and eggs can be produced even cheaper. If prices at which farmers sell their products reduce, so should the prices at which we buy these products,’ – said Gulbe during a press-conference.

At the same time the expert noted that the decline of prices on milk was caused by increase in supply, which came to be even before the adoption of the Russian embargo. The last factor only made the situation worse. Meanwhile, the domestic market shows a decline of consumption of dairy products. It is likely that milk procurement prices will continue to decline next year as well. The same applies to meat.

Nothing shows that global prices on grains could increase, believes Gulbe. Growth of harvests and decline of demand are two of the main deciding factors for the market: stores have reached their maximum capacity in the past fifteen years. As a result, he average grain procurement price in Latvia has declined by 18% in the past ten months.

According to farmers, price outlooks for food products are viewed as negative. The industry has tough times ahead of itself, adds Gulbe.

Ref: 017.109.109.5373


Leave a reply

Rezekne Council deputies will not be penalized for releasing newspaper in Russian language

The court has lifted fines previously applied by Corruption Prevention and Combating Bureau on nine deputies of Rezekne City Council for releasing a newspaper produced by the council in Russian language in addition to Latvian.

Volume of imported petrol in Latvia down 2% in five months

The volume of motor fuel imported to Latvia in the first five months has declined 2% in comparison with the same period of 2017. The volume of diesel fuel has declined 14.9%.

Corruption watchdog ends case about Bi-2 concert in Riga

Corruption Prevention and Combating Bureau ended in May the case regarding possible misuse of administrative resources on pre-election promotion by Riga City Council in the form of a free Bi-2 concert in Lucavsala.

Thailand's rescued boys honour casualty of 17-day rescue operation

In Thailand, a 12 boys trapped in a cave have been rescued in a rescue operation that lasted for 17 days and ended with one casualty, a rescue diver.

Latvian political party Progresīvie to nominate women as candidate list leaders

Latvia political party Progresīvie has revealed its list of candidates for 13th Saeima elections. Five women have been stated as leaders of candidate lists.

Estonia earns 150 000 euros from military evaders annually

Estonian compulsory military service is evaded by about 1 000 young men each year, who have to pay fines that annually exceed the combined total of 150 000 euros.

Chairman: FCMC’s competence should end with termination of licenses if banks are liquidated

In the event of liquidation or insolvency, Finance and Capital Market Commission’s competence should end with revoking affected banks’ license and without the need to appoint an administrator, says FCMC chairman Pēters Putniņš.

Minister: Latvia may terminate MPC system in the next three years

In the next three years or so Latvia could completely terminate the mandatory procurement component system, said Economy Minister Arvils Ašeradens in an interview to Rīta Panorāma programme of LTV.

In pictures: French victory in World Cup celebrated by tens of thousands in Paris

After the football World Cup was won by the French national team on Sunday, an enormous crowd of people gathered in central Paris to celebrate.

Another case of African swine fever infection recorded for domestic pigs in Latvia

African swine fever infection was recorded for domestic pigs in Tērvete on Monday, 16 July. 16 pigs were liquidated because of the infection, as reported by Food and Veterinary Service.

MEP Artis Pabriks becomes political party «Attīstībai/Par!» prime minister candidate

Latvian political party «Attīstībai/Par!» has picked Daniels Pavļuts, Juris Pūce, Ilze Viņķele, Artis Pabriks and Mārtiņš Bondars as its regional candidate list leaders. Artis Pabriks will also be the party’s prime minister candidate.

Russian-U.S. presidents meet in Helsinki

U.S. President Donald Trump and Russian President Vladimir Putin are meeting on Monday in Helsinki.

Heat of up to +30° C expected in Latvia this week

Weather in Latvia will be warm and even hot at times this week, as air temperature reaches up to +30° C. At night, air temperature is not expected to go below +20° C. Many regions will likely experience thunderstorms closer to the middle of the week, Environment, Geology and Meteorology Centre reports.

Week in Lithuania. Lithuania's Tripartite Council fails to reach agreement

Lithuania's Tripartite Council on Tuesday, July 10, failed to reach agreement on raising the minimum wage. Employers are inclined to back the government's proposal to raise the minimum pay to 420 euros. Meanwhile, trade unions want it increased to 450 euros.

BNN summary of the week: NATO to increase and ABLV Bank loses its license

BNN offers a summary of this week’s topical news in a variety of categories: Future; Deal; Fight; Decline; Decision; Opinion.

SEB Bank to unite life insurance companies working in Baltic States

SEB Bank will unite life insurance companies working in Baltic States, BNN was told by SEB Bank’s representative Agnese Strazda.

Saeima deputy Askolds Kļaviņš becomes suspect in criminal case

Saeima deputy from the Union of Greens and Farmers Askolds Kļaviņš has been made a suspect in the criminal case regarding abuse of official power.

Minister: E-health system has stabilized, but improvements are still needed

Functionality of the E-health portal has stabilized. Disconnection errors have ceased. Nevertheless, we have to continue improving the system further, said Latvian Healthcare Minister Anda Čakša said in an interview to Rīta panorama programme of LTV.

Six to eight Finance and Capital Market Commission officials may work at ABLV Bank

Six to eight FCMC trusties may work at the liquidated ABLV Bank, says Finance and Capital Market Commission chairman Pēters Putniņš.

Latvia’s Cabinet of Ministers receives expanded draft on deposit system

Environment Protection and Regional Development Ministry has submitted to the Cabinet of Ministers an expanded legislative draft regarding amendments to the Packaging Law and Environment Protection Law for their review in the State Chancellery, as confirmed by the ministry’s representatives.

Latvia will not escape talks on increasing defence spending

It is necessary to develop Latvia’s defensive capabilities. Because of that, Latvia cannot escape talks on increasing defence spending to more than 2% of GDP, said Defence Minister Raimonds Bergmanis, who is participating in the NATO summit in Brussels.

Russia extends food product embargo until end of next year

On Thursday, 12 July, Russian President Vladimir Putin decided to extend the embargo on food product imports from countries of the European Union and other countries until the end of next year.

Heat in Latvia to remain for longer; thunderstorms and heavy rain expected, as well

Next week in Latvia will be appropriately hot for summer, as air temperature is expected to reach +30° C at times. Nevertheless, most of Latvia will experience rain and thunderstorms, as reported by State Environment, Geology and Meteorology Centre.

US President announces «tremendous amount of progress» in defence spending matter

On Thursday, 12 July, US President Donald Trump announced having achieved a great deal of progress in the NATO member states’ defence spending matter during the summit.

Providus: it is impossible for Latvian parties to attract large funding honestly

«If we look at political parties’ ability to attract funding from large companies, for example, conclusions are rather sad – there is no way for parties in Latvia to attract funding in an honest way,» Providus think tank researcher Iveta Kažoka said in an interview to BNN.