||Latvia Business News: Archive 2003-2006
Thursday, the 29th of June, 2006
Demography - an explosive for our economics
Even though the international rating agency Standard & Poor recently informed of their decision to keep credit rating of Latvia on A level, on June 28, 2006, the agency threatened to decrease the credit rating due to the negative demographic situation. Analysts of the agency are more concerned about rapid aging of Latvian population than the risk of economical overheating, budget's deficit and inflation. The agency believes that the negative demographic situation can cause complete collapse of Latvian economics. At the moment there are 580 thousand pensioners, and by 2050 every third resident of Latvia will be a pensioner, which will lead to increase of governmental debt up to 128 per cent of GDP and budget's deficit up to 10.8 per cent. The agency reckons that the decrease of the credit rating to BBB level might happen in 2020, and by 2030 Latvia might be in the risk group.
Bizness & Baltija
Hope to start exporters support in autumn
Since the Latvian parliament passed the guarantee of export credit law, it will be easier for businessmen to receive credit in Latvian banks for export outside the European Union. The Latvian Ministry of Economics hopes that by autumn 2006 the mechanism of the guarantee of credit allocation for businessmen will be established.
Wednesday, the 28th of June, 2006
Latvian government decided to increase non-taxable minimum from EUR 46 to EUR 56 starting from January 1, 2007. The tax incentive for childcare will be increased up to EUR 40 a month as well. The Latvian Ministry of Finance believes that the law amendment will increase the earnings of Latvian residents, thus contributing to their purchasing power, and diminish employers tendency to pay salaries in envelopes. However, the director of Employers' Confederation of Latvia Elina Egle claims that the law amendment is insignificant in the present economical situation in Latvia. Since the minimal salary will be increased to EUR 171 from January 1, 2007, Egle believes that 60 per cent of the minimal salary, which is EUR 102, is sufficient raise.
Monday, the 26th of June, 2006
Private investments three times larger
According to the data of Central Statistical Bureau, non-financial investments in Latvia in the first quarter of 2006 constituted EUR 443.5 million, which is an increase by 16 per cent compared to the same period last year. Non-financial investments in the public sector amounted to EUR 107.5 million, which is by 8 per cent less. EUR 335.9 million were invested in private sector, which is by 27 per cent more. EUR 136.45 million or 31 per cent of the total non-financial investments value went to industry, EUR 62.5 million or 14 per cent to the sector of transport, storage and communications, and EUR 55.9 million or 13 per cent were invested in wholesale and retail trade.
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