|Latvia Business News: Archive 2003-2006
Friday, 25th of August 2006
Export is catching up
In Latvia during the second quarter of 2006, the unit values of exported goods started to catch up with the unit value of imported goods. Compared to the previous quarter of 2006, the unit value of the exported goods increased by 3 per cent, but the unit value of imported goods by 3.2 per cent. Assistant professor of the Banking Institution of Higher Education, Janis Grasis, said that it is hard to forecast how long the situation will be like this because in Latvia the unit value of exported goods is very dependable on resources if gas and fuel prices increase, then the average unit value of imported goods will grow again.
Wednesday, 23rd of August 2006
Different forecasts for the increase in GDP
The Latvian Economists Association forecasts that the increase of Latvias GDP in 2006 will be 11 per cent, but in 2007 it could reach 9.3 per cent. The Association believes that a rise in the domestic demand could prompt even greater increase in GDP in 2006, unless the increasing costs of labour slow it down. The European Union funds contribute to the increase of GDP, as well.
Latvian production is becoming more demanded
According to the data from the Eurostat, the Statistical Office of the European Union, in Latvia in June 2006 compared to May 2006 the industrial new orders rose by 8.6 per cent, which is the highest index among the European Union Member States.
Neighbours get something as well
The Financial and Capital Market Commissions statistics show that in the first quarter and half of 2006 compared to the same period of the previous year, the volume of deposits by non-residents of Latvia decreased in the Latvian banks. However, in June 2005 compared to June 2004 the volume of deposits by non-residents of Latvia increased by 27.8 per cent. The director of the Association of Commercial Banks of Latvia, Teodors Tverijons, that in his opinion it can be explained with the fact that the Latvian banks introduced more rigid measures in their systems, which do not allow money laundering activities. Meanwhile, the Latvian financiers suspect that because of the changes in the Latvian banks, an increase of the volume of deposits by non-residents can be observed in Lithuanian and Estonian banks.
Tuesday, 22nd of August 2006
Resources reached maximum
In July 2006, the production costs of Latvian industries increased by 11.40 per cent compared to the same month in the previous year. This is the highest year-on-year index this year. According to the data from the Central Statistical Bureau, the main influence on the index in Latvia was the increase in the tariffs of electric power, natural gas, steam and hot water supply. However, compared to June 2006, in July the production costs increased by 0.8 per cent. It was mainly caused by the increase in the production costs of wood and woodwork industry.
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