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The main obstacle in the medium term is the low amount of investments in the national economy of Latvia, which may cause problems for the growth of exports, believe Latvia's employers.

The pace of Latvia's economic growth in 2012 will be influenced by not only the developments in Latvia but also the economic and fiscal situation in the EU and the world, the Employers' Confederation representative Agnese Alksne told LETA.

In its proposals regarding the government's declaration, the Employers' Confederation has noted the need to reduce the volume of unnecessary regulations; the government must also develop a policy for supporting exports and attracting investments.

The government has begun transition to medium-term national budget planning, which, in businessmen's opinion, presents a clearer vision of changes in budget expenditures.

It is expected that the conclusion of the international loan program will result in a faster growth of the domestic demand, which could have a positive effect on the development of companies that do not export their products, believes the Employers' Confederation.

Employers also hope that the government's measures against the shadow economy will help reduce budget deficit and at the same time the current tax burden.