|Latvia Business News: Archive 2003-2006
Friday, the 2nd of June, 2006
Encouraging developments for introducing euro
European Parliament has encouraged re-evaluating the allowed inflation for the new EU member states that want to introduce euro, pointing out that inflation tends to be larger in countries that are undergoing a rapid economical growth. Experts, however, remain skeptical, pointing out that EP has just consultative role regarding the EU monetary policy.
Thursday, the 1st of June, 2006
We will enter the Euro zone after 3.5 years
On May 31, Latvian Prime Minister Aigars Kalvitis announced that Latvia will introduce euro in 2010 together with the rest of the Baltic States. However, Kalvitis pointed out that the economy of Latvia has to be stabilised right now, not in 2010. Experts fear that the need to lower inflation will lead to slower economic development.
Wednesday, the 31th of May, 2006
World Bank has evaluated Latvia
World Bank has published its index of 155 world countries according to the possibility to do private business in the countries. Macroeconomic growth, legal system, taxes, logistics and workforce, ease of obtaining credits and opening a company were evaluated. Latvia reached 26th place.
Biznes & Baltija
Tuesday, the 30th of May, 2006
Productivity does not correspond to the salaries
Alfs Vanags, the chairman of Baltic International Economic Policy Study Centre, believes that data shows that Latvian economy has already overheated. He points out that in 2005, GNP increased by 10.2 per cent, inflation by 7 per cent, the average salary by 17 per cent, whereas the productivity increased just by 10 per cent. Vanags believes that productivity needs to be increased before increasing the salary. He also points out that the rapid growth of real-estate prices, 44 per cent in 2005, should be stopped, because the prices will eventually come down, and they can cause crisis if falling too rapidly. Vanags calls the 60 per cent growth in crediting abnormal, and believes that state must accept a deficit-free budget. Vanags also believes that the increasing shortage of workers might cause serious problems, and encourages slow cooling down instead of waiting for a big crisis.
Monday, the 29th of May, 2006
Estonia and Lithuania are ahead Latvia
In the first two months of 2006, the Latvian export increased for 16 per cent in comparison with the same period in 2005, reaching EUR 0.7 billion. However, the growth is the smallest in the Baltic States.
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