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Wednesday, 17.04.2024, 22:41
Latvian Employers' Confederation: economy yet to reach the lowest point
Vitalijs Gavrilovs. |
Commenting the Association of Hotels and Restaurants of Latvia President Janis Naglis' statement at the 15th Baltic Financial Forum, that the Latvian economy has already hit rock bottom, Gavrilovs stressed that economic downturn continues and the lowest point is yet to be reached.
Gavrilovs explained to LETA that his opinion is based on the results in the business sector, where income and turnover are still decreasing.
Gavrilovs also declined to say when the economy could reach the lowest point, he only said that "winter is coming, when the situation will become harder yet."
Gavrilovs went on to say that the government must do what it promised to the international lenders to avoid damaging the reputation of Latvia internationally.
"What the government can do now is to convince the international lenders that it is able to increase budget revenue through the gross domestic product, not by raising taxes," said Gavrilovs, adding that the government has still not begun the structural reforms that would be based on certain development goals and make promote the economic development.
Gavrilovs believes that these development goals must be binding for all government institutions and agencies, and this is a precondition for long-term economic development.
Naglis also said in his address that Latvia's competitiveness has decreased in several sectors. "The government must discuss all of the planned changes with the respective business associations to have a well-weighed policy, making it possible for various national economy sectors to develop. The government must not make overnight decisions," said Naglis, adding that it is important for companies to understand what policy the government will pursue and what government decisions they may expect, therefore the government must adopt the 2010 state budget as soon as possible.
Gavrilovs, in turn, said in his speech at the forum that the development of exports requires exporters to consider new markets, such as Turkey, India and other Asian countries.
The 15h Baltic Financial Forum is being held today to discuss financial challenges to the Baltic companies.