International Internet Magazine. Baltic States news & analytics
Friday, 28.04.2017, 03:24
Since the beginning of the year, political debates have been mainly focusing on reforming the tax system.
Keyword tags: Analytics, Banks, Direct Speech, Latvia, Taxation
Commissioner Rapil Zhoshybayev welcome to the Third Astana EXPO 2017 International Tourism Conference on 21 April in Astana. The text of the welcome address was kindly provided by the BC to the secretariat of the Commissioner of EXPO-2017.
Global and Lithuania’s economic development accelerating, but growth impact not to be felt by everyone due to income inequality21.04.2017
Growing inequality in income and opportunities is an issue that is especially relevant to us as well. While we are reasonably excited at the economy’s recovery and growth, the gap between the richest households and those with the lowest income continues to be unjustifiably large; hence, people’s feelings about economic growth vary, and not everyone’s quality of life has been improving.
Bank of Estonia:Financial stability in Estonia could be threatened by rising prices and increasing transaction activity in the real estate market20.04.2017
Most of the risks to financial stability in Estonia are low in the near future. The ability of companies to service their loans is supported by a recovery in economic growth and slower growth in wages Transaction activity increased in the real estate market and prices started to rise faster, though this has so far been in line with rising incomes. Rapid growth continues in bank loans to companies and households. The debt of the non-financial sector fell as a ratio to GDP as borrowing from abroad was modest, and Eesti Pank is holding the countercyclical buffer rate at 0%. A tax on the financial sector may have a negative side effect on financial stability and the financing of the economy
In line with forecasts, the fastest leap of consumer prices is behind us. In March, consumer prices increased by 3.4% year-on-year – the annual inflation hardly changed compared to February (when this indicator was at 3.3%). In the coming months, the year-on-year inflation will hover around the 3% mark. The most important risk facing the inflation forecast currently is the future dynamics of oil prices.
In February, the performance of manufacturing remained at approximately the previous month's level (+0.4%, seasonally adjusted data). However, in evaluating this result we must remember that the achieved level is rather high, as evidenced by the y-o-y growth (+4.6%).
Latest projection of the Bank of Lithuania: Given economic acceleration and average wage will rise more than prices
Having assessed the gradual pick-up in domestic economic activity and the improving situation of Lithuanian manufacturers in relevant foreign markets, the Bank of Lithuania projects that this year the economy will expand by 2.6%, while its growth rate next year will reach 2.8%. Wage growth, estimated to stand at 6.1% in 2017 and 5.7% in 2018, will outstrip the rising inflation rates. Such projections for economic and wage growth are higher than expected and announced at the end of last year.
There is no point in being afraid of thunder – lightning is the real danger. Thunder just reflects with a lag the flashes of lightning by way of sound. An increase in consumer prices is a similar story: it is an objective reflection of previous developments on the global commodity markets.
The current account surplus for 2016 was the largest since independence was regained at 2.7% of GDP. Reinvested income is preferred to new money for use in investment. The net international investment position continued to improve.
Lithuania and Finland: shoulder to shoulder in ensuring security for themselves and the whole region
Lithuania and Finland, two Nordic-Baltic sisters, are interconnected by long-ranging historical, political, and cultural links.
Inflation continued to rise in Estonia, and it was at its fastest for four years in February. Inflation is being driven by higher global prices for oil and food, and by higher excise rates. Core inflation has also risen in recent months because of service prices
Following a short-lived seasonal shrinkage of the loan portfolio in December, January data confirmed that the overall trend of increasing lending has not changed. Growth in both lending to nonfinancial enterprises and consumer lending remains stable.
Vitas Vasiliauskas, the Lithuanian central bank governor, says that the financial services market is undergoing a fast transformation as alternative services providers are growing in numbers, increasing the pressure on the commercial banks to embrace innovation.