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Friday, 29.03.2024, 14:09
Analysts: productivity has become one of major challenges in Latvian economy
SEB Banka macroeconomic
expert Dainis Gaspuitis told LETA increase of productivity is among
the most important challenges in national economy. "Welfare of every
employee, every company, the whole society will depend on how successfully we
are able to raise productivity," he said.
Gaspuitis said, that, according to the Organization for Economics
Cooperation and Development (OECD), the wish and ability of businessmen to join
the global added value chains play a significant role in productivity. "At
present the EU funds play a large role, businesses have purchased new
technologies. Nevertheless, also a tax system should promote investments in
technologies and skills. Latvia’s investments in research are very low,"
said Gaspuitis.
He also noted that the focus of Latvian companies on external markets and
innovations is lower than in Lithuania and Estonia on average.
DNB Banka macroeconomic
expert Peteris Strautins told LETA that the public sector has to
change rapidly. There are sectors that already are on a good level
(professional education), there are some that are undergoing changes (general
secondary education), and some that are in a deep stagnation (higher
education).
Meanwhile, the private sector should not wait for everything to get
arranged by itself.
He noted that OECD recommendations are also related with the role of Riga
as the capital in Latvia’s economy, assessment of this role and wise use of it.
In this respect, the goal included in the National Development Plan to lower
the share of residents living in Riga and the region is a catastrophic
stupidity.
Swedbank chief economist Martins Kazaks also told LETA that the most important issue in
OECD survey is the role of Riga in development of regions.
He also said that in order to increase productivity there is nothing new
that should be done – improvements in the health sector would allow people
work, education would ensure the necessary skills, efficient court system would
ensure shorter trial time, better protection of investors and smaller shadow
economy.
As reported, the OECD on September 15 released its first Economic Survey of
Latvia since the country’s accession to the organization. Latvia joined the
OECD in 2016.