Friday, the 10th of June, 2005
Most rapid increase in EU
In the first quarter of 2005, GDP increased by 7.4 per cent compared to a respective time period last year. The GDP of Latvia is the most rapid in the EU. The GDP increase was fostered by increase in trade by 15.7 per cent, transport and connection industry by 11.1 per cent, and commercial service industry by 5.1 per cent and construction by 16.2 per cent. The decrease was the largest in manufacturing industry that was most influenced by decrease in woodworking by 6.9 per cent. Nevertheless the Bank of Latvia and the Ministry of Economy maintain their GDP forecasts of this year to be 7.5 per cent. The experts hope for summer when growth in industry is expected but the high inflation might slow down the growth of economy.
Thursday, the 9th of June, 2005
Inflation in May decreases less than expected
The inflation data in May have not increased the possibility of introducing euro in Latvia. The consumption prices are still increasing and the inflation is still high. The annual inflation in May was 6.3 per cent. In April it was 6.9 per cent. The inflation was mainly due to rapid increase in food prices. The Ministry of Economy believes that a more active work of government is needed to limit the inflation. The experts say that the normal cycle of food prices has been distorted already for some time and the prices are being forced up.
Construction expenses increase significantly
In the first quarter of 2005, the increase in construction expenses was most rapid in Latvia among the Baltic States compared to respective period a year ago. The expenses grew by 10.8 per cent, while in Lithuania they went up by 8.7 per cent and in Estonia increased by 8.4 per cent. Compared to the fourth quarter of 2004, the construction expenses increased most rapidly in Latvia as well - by 2.6 per cent.
Wednesday, the 8th of June, 2005
To spend million on partnership research
It is planned to spend LVL 1 million on research of public-private partnership (PPP) projects from 2006 till 2009. LVL 850,000 of the sum will be attracted from abroad but the rest will come from the state budget. The plan includes also preparing an integrated internet home page about PPP. LVL 2,000 will be spent on the home page. It is intended to increase the number of the PPP projects by 30 per cent a year. It is also intended that PPP projects will amount to 1 per cent of the GDP.
Tuesday, the 7th of June, 2005
Latvian inhabitants are buying more
In April, the retail turnover increased by 20.1 per cent in comparable prices compared to April 2004. Compared to March it has increased by 3.5 per cent. Sales in unspecialised shops that are mostly supermarkets contributed to the increase in retail turnover the most. Turnover in this group increased by 18.7 per cent. Retail turnover of textiles, clothing, footwear and leather increased by 45.4 per cent. Increase in prices and number of shops significantly contributed to the retail turnover growth as well. According to director of Science Academy's Economics Institute Raita Karnite the rapid growth of retail is fostering GDP growth.
Saturday, the 4th of June, 2005
Latvia is still the poorest in EU
According to Eurostat's data of 2004, Latvia is still the poorest of the EU states. Its GDP per one inhabitant is 43 per cent of the average GDP level of the EU. Although Latvia has the largest GDP growth the income per one inhabitant has increased only by 2 per cent and it is 41 per cent of the average EU level.
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