International Internet Magazine. Baltic States news & analytics
Sunday, 19.02.2017, 16:21
The boat builder Baltic Workboats based on Estonia's largest island of Saaremaa raised the wages of its production personnel by close to 25% at the beginning of this year. reprots LETA/BNS.
Keyword tags: Baltic Export, Construction, Estonia, Good for Business, Markets and Companies, Port, Wages
Residents of Latvia have to spend larger part of their monthly income in taxes than residents of Lithuania or Estonia, as Swedbank Institute of Finances informed LETA.
The results of the survey conducted by the Central Statistical Bureau (CSB) in 2016 show that, compared to 2014, in 2015 the most rapid household disposable income1 growth – of 10.6 % – was observed in the poorest households (belonging to the 1st quintile group). The average annual income increase in the country accounted for 7.6 %. The smallest increase was recorded in the households belonging to the 2nd quintile group – of 4.8%. In the richest households (those belonging to the 5th quintile group) the annual income rise (comprising 5.7%) was smaller than the national average.
The spending of Lithuanian households on essential goods remains the lowest in the Baltic states, however, is rapidly catching up with Latvia, shows an index of household spending published by the research company Baltic Market Insights (Baltmi). According to the survey, Lithuanians spend an average of nearly 2 euros more than Latvians during a single visit to the store, however, are still behind Estonia, reports LETA/BNS.
According to Statistics Estonia, in 2015, 21.3% of the Estonian population lived in relative poverty and 3.9% in absolute poverty. The overall percentage of people living in relative poverty decreased 0.3 percentage points compared to the previous year, the percentage of people living in absolute poverty decreased 2.4 percentage points (ppt).
The rise in wages continues to stall. The average wage for full-time work in the third quarter of 2016 was by only 2.2% higher than a year ago, which is the slowest growth rate in the last six years. Even though there is no doubt about a slower wage rise this year, other statistical data sources (State Revenue Service and national account data) do not have such pronounced slowdown. Thus there is no reason for alarm and the view that the rise in average wage has come to a sudden stop in the past few months. Next year, we are likely to return to a moderate 3-5% year-on-year wage rise – such a rate of growth was the case in 2011-2013.