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Latvia Business News: Archive 2003-2006

WEEK 24.2006

Monday, the 12th of June, 2006

GDP is moving up
Statistical data show that in the first quarter of 2006 GDP increased by 13.1 per cent compared with the respective period last year. The main drivers of the increase are retail trade, transport and communication industries. The leader is trade industry which composes 22.6 per cent of the GDP and rose by 17.7 per cent in the first quarter of 2006. Transport and communication industry, which provides 13.6 per cent of the GDP raised by 13.6 per cent, manufacturing industry which composes 12.7 per cent of GDP raised by 6 per cent, but construction industry which composes 4.7 per cent of GDP raised by 17.5 per cent. Experts state that rapid increase of GDP is an exceptional situation in the Latvian economy however they believe that the increase should slowdown soon. Ivars Brivers, professor of the Banking Institution of Higher Education, reminds that too fast increase of GDP causes problems, including inflation and unequal development of regions.
Dienas Bizness

Monday, the 12th of June, 2006

Spurdzins: honest businessmen do not receive letters from the State Revenue Service
In the interview, the Latvian Minister of Finance Oskars Spurdzins says that Latvian economy is ready to decrease personal income tax starting from next year; inflation could reach 5.5 to 6 per cent in 2006. The minister also believes that Euro cannot be introduced in 2008. Recently the State Revenue Service sent out letters to Latvian companies with warning to pay their employees at least LVL 160 every month. Spurdzins assesses the approach of the State Revenue Service to Latvian businessmen positively. He believes that honest businessmen do not receive such letters.
Dienas Bizness

Tuesday, the 13th of June, 2006

Life seems to become rosier
Every year there are less Latvian households who think they are poor. However, statistical data show that every third respondent evaluate its material welfare as poor. Depending on Latvian region material welfare has been assessed differently. In Riga and in Kurzeme 12 per cent of households think they are financially secure, but in Latgale 38 per cent think opposite. Households of businessmen and self-employers believe they are the most financially secure in Latvia.
Dienas Bizness

Wednesday, the 14th of June, 2006

Threaten to increase minimal salary
Ministry of Welfare proposes to increase minimal salary from LVL 90 to LVL 120 staring from January 1, 2007. Possible change might reflect on 83 thousand employees in private and public sector. LVL 9.1 million of the Latvian state budget will be needed to enforce the proposal. In June 13, 2006, the Latvian government confirmed amendments to the pension law, which now have to be approved by Saeima.

Wednesday, the 14th of June, 2006

Crisis in work force is not far away
After joining the European Union Latvian economy develops rapidly attracting foreign investors and thus creating new work places. Data of the Central Statistical Bureau show that in the first quarter of 2006 work vacancies in private and public sector increased by 27 per cent comparing to 2005. There are about 16.800 thousand vacancies in the country that is 1.7 per cent of the total number of work places. Experts are concerned about the growing amount of vacancies in private sector that in a year time has increased by 3,000.
Bizness & Baltija

Friday the 16th of June, 2006

Latvia is at the very tail
According to Eurostat, Latvia’s GDP per inhabitant expressed in terms of purchasing power was 47 per cent of the level of the European Union. It is the lowest showing among the 25 EU states.
Dienas Bizness

Friday the 16th of June, 2006

Work force will have to be brought in
In order to solve lack of work force in Latvia, chief economist of Hansabanka Martins Kazaks suggests two solutions: to allow temporary immigration of less qualified work force in rapidly developing sectors and to secure long term growth in potentially reproducing sectors by developing proficiency. Director of Department of Industry of Ministry of Economics Olegs Baranovs supports these suggestions; however he admits that there are difficult questions to be solved: how many, how long and from what countries the immigrants should be allowed to enter the Latvian work force market.
Dienas Bizness

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