News
IMF Improves Latvia’s GDP Forecast
Industry Continued to Grow Rapidly, a Slower Rate Expected in the Next Months
An Annual Retail Turnover Increase for the First Time since 2008
Rapid Contraction of Wage-Productivity Gap Allows Industrial Growth
Latvia's Outlook Raised to `Stable' by Fitch on Budget, Improving Economy
Government Takes Action to Attract Large Foreign Investments
Action Plan of Combating Shadow Economy Approved
Retail Turnover Indicators Stabilize as the Future Evaluation of Households Improve
Bank of Latvia Lowers Deflation Forecast for 2010
Current Account Positive, Overall Balance of Exports and Imports Posts a Small Surplus
Riga welcomes 80 Latvia's Honorary Consuls from 49 countries
Money in Circulation Stabilized, Drop in Lending Abating
Shadow Economy Reduction Plan Offers to Facilitate Formal Economy
Beneficial Development Requires Purposeful Cooperation
Foreign Investors Council in Latvia adopts the statement of Good Corporate Citizenship
The meeting of the high level officials and the Foreign Investors' Council in Latvia
The World Bank Suggests Measures for Further Fiscal Consolidation
Moody’s has Raised Latvia’s Ratings Outlook
Moody’s Considers Latvian Economy Stabilising
Association of Latvian Commercial Banks Forecasts 3,2% Growth in 2011
Parex Index: the Mood of Entrepreneurs is Becoming More Stable
Latvia – Leader of Baltics on the EU Fund Acquisition
Latvia to Become Main Transit State for Shipping NATO Non-military Cargos to Afghanistan
Industry Continued to Grow Rapidly, a Slower Rate Expected in the Next Months
By Latvian Institute
On October 4, the Central Statistical Bureau reported that the manufacturing industry output in August grew 2.6% month-on-month, and year-on-year the growth has reached 20.4%. The increase was primarily attributed to the rise in the output of metal, chemical, non-metallic mineral, as well as wood pulp and wood product industries. The volume of new orders in July increased 67.0% year-on-year (41.9% domestically, 74.8% in exports), but remained practically unchanged month-on-month according to the seasonally adjusted data.
Igors Kasjanovs, Bank of Latvia Economist, commented: “Even though the manufacturing industry has grown in the last few months, the growth rate is expected to drop at the end of the year. First, uncertainty regarding the prospects of global economic development is on the rise, finding its reflection in the dynamics of new export orders. Second, with the rise in production volumes, the full load of industrial production capacity has also grown. This means that the opportunities for raising production will in the future increasingly depend on new investments and on the ability of businesses to finance these investments by attracting credit resources.”
He added that it is not only productivity that accounts for the recent Latvian industrial growth but also price competitiveness: “The situation in the labour market has helped to reduce the costs of per unit production, which was a substantial boost for the competitiveness of Latvian manufacturing industry vis-à-vis the manufacturers of other countries. [But] a sustainable increase in welfare can only be ensured by production that is wiser, more effective and generating larger income. That means that producers will have to continue to improve the efficiency of their businesses and develop new knowledge-based products that will require new investments both in the production technologies and man-capital.”
For further information see:
http://www.csb.gov.lv/csp/events/?mode=arh&period=10.2010&cc_cat=472&id=12055
