Reval Hotels
Pietari Express
 Observer Latvija SIA

WEEK 2.2006

Friday, the 13th of January, 2006

12 000 new companies will appear in Latvia
On January 12 Chief State Notary Janis Endzins promised that the number of newly registered companies in 2006 would increase by 5-10 per cent. He based his forecast on the observation that this has been the tendency for past couple years and that the economy of Latvia develops rapidly. In 2005, 11 009 companies were established which constituted an increase by 7.7 per cent from 2004. On the other hand, 8 646 companies were closed in 2005, while only 3 05 went through this process in 2004.
Biznes & Baltija

Thursday, the 12th of January, 2006

Subsistence level increases
The average subsistence level in Latvia in 2005 constituted EUR 150.68 per month for a person. It has been increasing throughout the year, according to the Central Statistical Bureau. In January 2005 this index constituted EUR 143,45, while last year it was only EUR 141.11.
Dienas Bizness

Wednesday, the 11th of January, 2006

Latvian business: positive view
The annual Eurochambres survey shows Latvian businessmen are optimistic about their future in the European market; 83.7 believe they can compete in the EU market, and just 3.4 per cent view their chances negatively. Most businessmen believe the number of their workers will stay the same in 2006 but increase in future. Latvian businessmen are considering attracting Eastern workers to compensate the migration of Latvian workers. Latvian businessmen are also optimistic about their chances of attracting investments; 54.6 per cent believe they can attract investments. Eurochambres points out Latvia still needs to improve its production processes and services to meet the EU and world level. It should also develop new kinds of businesses.
Dienas Bizness

Tuesday, the 10th of January, 2006

Inflation takes its share
According to the data of Central Statistical Bureau of Latvia, inflation constituted 7 per cent in 2005. At the beginning of the last year it was forecasted at 4.5-5.5 per cent. Inflation was influenced the most by increase in prices of food products and fuel. Thus cheese prices increased by 21.3 per cent, bread – by 17.6 per cent, dairy – by 14.8 per cent and fuel – by 20 per cent. Only prices on telecommunications decreased by 6.4 per cent due to fierce competition. Experts say that in 2006 inflation will reach 5.5 per cent due to increase in prices on mailing services, heating, alcoholic beverages, building materials, rent in denationalized houses, fuel and others. The government continues to insist that it will not take any steps to control inflation. According to Aigars Kalvitis, the Prime Minister of Latvia, the level of inflation is stabilizing and sooner or later it will decrease. Inflation and changes in prices will continue to complicate business activities in Latvia.
Biznes & Baltija

Monday, the 9th of January, 2006
Trade balance remains negative
Latvian export in 2005 still was significantly lower than Latvian imports, but economists believe that it could grow faster than import in 2006. However, the overall trade balance will still remain negative, because it could change only if Latvia develops high-tech export industry and becomes the regional finance, logistics, and transportation centre.

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