Latviski English По-русски
Friday 20.07.2018 | Name days: Ramona, Ritma

People’s confidence around the world currently higher than it was before the crisis

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUConsumer confidence around the world has reached 98 points in Q3 2014, which is one point higher than it was in the previous period and two points higher than it was at the beginning of the year. This index, which has been demonstrating slow but stable growth since the beginning of 2012, remains higher than it was before the crisis.

Consumer mood index is estimated using 100 points as a threshold. Any value above it means higher confidence; anything below it means more pessimism.

Europe’s confidence level is 78, which is lower than the one in the world in total. Consumer mood in Latvia is the same. Lithuanians and Estonians are somewhat more optimistic – 86 in Lithuania and 80 in Estonia.

Among the largest economies in the world, the most notable change in consumer mood is noted in USA – the country’s index has increased by four points, reaching 108. Germany’s index has grown by one point (97), by one in the UK (93) and by four in Japan (77). China’s consumer mood remains stable – 111.

The highest index of consumer confidence is noted in India (126). The lowest one is noted in Italy (47). Australia has experienced the most notable increase with its index of 97. Chile, on the other hand, has experienced the most notable decline (88).

According to Dr Louise Keely of Nielsen Global Consumer Confidence Index, consumer mood changes outside of North America are weaker and more fragmented, because values are largely affected by regions and specific factors in each separate country. She mentioned that Europe’s overall confidence is heavily influenced by the geopolitical crisis in Ukraine, which came at the same time as political attempts to prevent deflation risks and improve economic growth. Confidence has recovered in India, which was largely because of the election of a new government. Rise of consumer confidence in China has a different reason – reorientation of the economy towards domestic consumption.

52% of respondents have said they expect the labour market to be in good or great state next year. This is two percentage points more than the survey results for the previous quarter. This slight increase has been noted in every stage of the survey since 2009, when optimism about the state of the labour market was expressed by only 31% of respondents.

The largest increase in optimism in regard to possibilities of getting a job was noted in North America, where it has increased by nine percentage points over the past 12 months, reaching 55%. Rise in confidence has also been noticed in other markets – by seven percentage points in Asia and Pacific region, reaching 66%; by six percentage points in the Near East and Africa, reaching 46%; and by five percentage points in Europe, reaching 31%. South America is the only region of the world, where this index has declined by seven percentage points, down to 34%.

Considering that 54% of respondents had said in the previous survey that there is a crisis in their respective countries, specialists remain cautious in regard to consumption outlooks for the future. In regard to spending money and saving money, values in the world remain on the same level, some markets demonstrate increases of one percentage point in regard to cash money savings (49% of respondents), savings for pension (12%) and vacation and weekend expenses (36%). Nearly one-third of respondents plan to spend money on clothes (34%) and entertainment outside of home (31%). No changes have been noticed in these indexes. Approximately one-fourth of respondents plan to spend money on procurement of new technologies, which is two percentage points lower than before. 20% of respondents plan to allocate money to pay for debts and loans.

Consumers remain interested the most in the situation in economy and labour market. Optimism is noted in both these areas. Concerns are nonetheless on a rise in other segments. 27% of respondents in North America see the economic situation as the main reason for concerns. Concerns about terrorism have risen by seven percentage points, reaching 14%. Fears over the possibility of war have risen by five percentage points, reaching 9%. Concerns over balancing labour and leisure worry 12% of respondents, which is three percentage points higher than before.

In Europe, opportunities in the labour market were mentioned as the primary reason for concerns by 21% of respondents, which is three percentage points fewer than before. Concerns about economic matters have declined by one percentage point to 20%. Fears related to the possibility of war have increased by eight percentage points, reaching 18%. Fears related to war have increased in Baltic States as well: 30% in Latvia, 14% in Lithuania and 21% in Estonia.


Leave a reply

Survey: every third Latvian resident has received illegal loan offers

Nearly every third resident in Latvia or 31% of respondents admit having received offers to use illegal loan services, as concluded in a survey performed by Latvian Alternative Financial Services Association and SKDS.

Libya opposed to EU's idea to establish migrant centres in North Africa

Libya is against the solution of the European Union to set up migrant centres in the North African country as a means to keep migrants from arriving in the bloc and Libya would not be convinced with financial support, its Prime Minister Fayez al-Sarraj has noted.

Arrest warrant on Catalan ex-President cancelled by Spain

The Supreme Court of Spain cancelled a European arrest warrant for former Catalan regional leader Carles Puigdemont, as Germany refused to extradite him to face accusations of rebellion for declaring the independence of Spain's region, Catalonia in 2017.

Latvian government plans to allow handing expired food to charity

Latvia’s Agriculture Ministry has prepared amendments to the Law on the Supervision of the Handling of Food that provide permission to hand over certain types of food products to charity after the end of their expiry date.

Estonian industrial producer prices up 2.9% since June 2017

Estonian industrial producer price index has risen by 2.9% between June 2017 and the first summer month this year, resulting in an increase of export prices as well, Estonian statisticians have estimated.

Putin urges NATO to quit «irresponsibly» developing ties with Ukraine, Georgia

Russia's President Vladimir Putin cautioned NATO against developing deeper relations with Ukraine and Georgia, evaluating such a policy was irresponsible and would have consequences for the military alliance.

Latvian parliament not in a hurry to support president Vejonis for a second term

Political parties represented in the Saeima are not eager to support President Raimonds Vējonis for his remainder for a second term.

Weather in Latvia will remain warm and even hot at times

Weather in Latvia in the nearest couple of days will be dictated by a cyclone. Because of that the sky will be partially covered by clouds; thunderstorms are also expected, as reported by State Environment, Geology and Meteorology Centre.

Hungary sued in EU Court for criminalising help to illegal immigrants

The European Union's executive body has stated that a law in Hungary that criminalises support for illegal immigrants is in breach with EU law and Hungary has now been referred to the European Court of Justice for the alleged non-compliance.

Estonians buy alcohol in Latvia; country loses EUR 20 million in six months

Latvian stores located close to the Latvian-Estonian border have sold 1.6 million litres of strong alcoholic drinks in the first half year of 2019. This means Estonia has lost more than EUR 20 million in taxes, according to data from Association of Estonian Alcohol Producers and Importers.

Lithuania’s election watchdog slams ruling LFGU over popular TV series

Political messages can be channeled in various ways and the ruling now Lithuanian party, LFGU has chosen a very delicate way of the communications – through a TV series featuring the beauty and the ambiance of Naisiai, a picturesque settlement in Siauliai district.

Association: around 3,3000 people know of their HIV infection but receive no treatment

HIV remains a serious problem in Latvia – around 3,300 people are aware of their status but receive no treatment and continue spreading the infection. Because of that, it is necessary to act quickly for Latvia to lose its status as HIV kingdom and limit the spread of the infection, says Baltic HIV Association, informing decision-makers and responsible officials in institutions and hospitals about the HIV/AIDS situation.

Driver shortage may force reduction of international road haulage volumes

Latvia’s road haulage companies have started experiencing shortage of drivers. On top of that, if employment conditions for residents of non-EU member states do not change, it may be necessary to reduce the volume of road haulage volumes, says Latvijas auto president Valdis Trēziņš.

Lattelecom’s turnover up 9% in first half-year of 2018

Lattelecom Group’s turnover reached EUR 98.7 million in the first half-year of 2018, growing by 9% in comparison with the same period of 2017, according to unaudited financial results.

1,140 fewer births registered in Latvia in 2017

Since 2016 the number of births in Latvia is declining again. Compared to 2016, a total of 1,140 births fewer were registered in 2017. Also, the provisional number of births registered over the first six months of 2018 (9,664 children) is by 664 children smaller than that registered over the respective period of 2017.

Citadele Bank decides to reform Lithuanian subsidiary as a branch office

Citadele Bank has decided to reform its Lithuanian subsidiary as a branch office, as confirmed in the statement the bank submitted to Nasdaq Riga.

Russian pension age hike discussed amid protest outside Duma

As the Russian paliament votes on the proposal to gradually increase he pension age to 65 for men and 63 for women, some 200 people were seen protesting against the reform in Moscow.

Corruption watchdog chief says bureau has done no illegal actions

After going through Corruption Prevention and Combating Bureau’s past investigative activities, the bureau’s chief – Jēkabs Straume – found it confusing that officers often took no appropriate actions after acquiring evidence or receiving indications regarding necessary steps.

Illegal border crossings to Estonia on rise after Russia World Cup

Football fans with temporary residency permits of the Russia World Cup, or fan Ids, are trying to illegally cross the Russian border with Estonia, a member of the European Union.

Estonian 13-year-old lethally overdoses fentanyl

Estonian prosecutors have accused a 15-year old of negligent homicide after a girl, 13, passed away from fentanyl overdose.

Wild party competition and political chaos – what goes on during pre-election period?

If we compare who fought under 5% barrier some 8-12 years ago, we will see Daugava’s diggers, head nurse parties and eurosceptics parties whose ability to create some form of a working party programme was very weak. Now political parties’ competitiveness is so high that up to eight parties may successfully overcome the 5% barrier and this points to healthy competition. At the same time, in all this competitive mess it is impossible to understand where parties get financing and access to media resources, politologist and Providus think tank head researcher Iveta Kažoka commented on the pre-election period in an interview to BNN.

Google fined with EUR 4 billion for competition abuse with Android

Google has been fined by the European Commission with a fine of 4.34 billion euros illegal abuse of its dominant market position and the executive of the European Union is set to move on with investigations into other possible practices of unfair competition by the U.S. company.

Turkey removes post-coup attempt state of emergency

The government of Turkey has decided to end the nationwide state of emergency that was imposed in 2016 after a failed coup attempt, state media have reported.

House arrest of Russian theatre director Serebrennikov extended

A court in Russia prolonged the house arrest of Kirill Serebrennikov, a leading Russian theatre and cinema director, until August 22 as he waits for a criminal trial charged with of embezzlement of state funds.

NCP picks Jurašs, Strīķe, Bordāns, Feldmanis and Šuplinska as its headliners

Latvia’s New Conservative Party has picked Juris Jurašs, Juta Strīķe, Jānis Bordāns, Krišjānis Feldmanis and Ilga Šuplinska as its headliner candidates for Saeima elections.