|Latvia Business News: Archive 2003-2006
Thursday, 17th of August 200
According to the Central Statistical Bureau study, in Latvia in the first half of 2006 the volume of the export of wood was EUR 561 million, which has decreased by EUR 43 million or 7.1 per cent compared to the same period of the previous year. Latvian entrepreneurs expressed disbelief, for up till now the export of wood has always been increasing. The chief executive of Latvian Federation of Wood Industry, Harijs Jordans, reasoned that the decrease of the wood export could be explained with growing competition, especially since Russias entrepreneurs are becoming more active in the industry.
Wednesday, 16th of August 2006
Labour shortage deters
British company The Morgan Crucible Company abandoned an investment project worth EUR 14.2 million in Liepaja after failing to get the European Union funding. The British company planned to open a production facility for specialized ceramic products creating 150 jobs. A new unnamed investor has started negotiating with the Liepaja City Council about taking over the territory in the Liepaja Special Economic Zone reserved for The Morgan Crucible Company, but the possible investor has expressed concern about finding enough workers. The director of Public Relations department of the Latvian Investment and Development Agency, Ieva Vikmane, commented that, even though finding investors is becoming more difficult due to the shortage of labour force, there still is an interest to invest in the industrial projects in Latvia.
Five largest Latvian commercial banks had profit over EUR 119.5 million each in the first half of 2006. Hansabanka earned the most profit - EUR 42.2 million, which is by 52.5 per cent more compared to the same period of the previous year.
Tuesday, the 15th of August 2006
According to the Bank of Latvia, in the first half 2006 in Latvia the current account deficit was EUR 1118.4 million, which is by EUR 508 million more than in the same period of the previous year. The current account deficit amounted to 16 per cent of GDP. The growth of the current account deficit was caused by an increase of the negative balance of payments of goods by almost EUR 570 million. The positive balance of services increased by EUR 101 million. In the respective period Latvia received EUR 234.77 million from the European Union, however, the country paid EUR 71.1 million in the EU budget. Latvia gained EUR 647.4 million as foreign investments.
Import is quicker than export
The study of the Central Statistical Bureau shows that in June the volume of export in Latvia amounted to EUR 406 million, which is 23.9 per cent more than in the corresponding period of the previous year; the volume of import amounted to EUR 702 million or 25.7 per cent more. The balance of import surpassed export by EUR 296 million thus indicating that the balance of Latvias external trade is negative, however it is less than in May 2006, when the negative balance reached EUR 334 million.
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