National economic growth will be slower this year than in 2004 - Bank of Latvia
According to Bank of Latvia^apostrofs;s estimates, growth of the national economy in 2005, though likely to fall behind that of 2004, is expected to be significant, 7.5 percent. This according to the notes from the central bank^apostrofs;s president Ilmars Rimsevics.
According to Bank of Latvia's estimates, growth of the national economy in 2005, though likely to fall behind that of 2004, is expected to be significant, 7.5 percent. This according to the notes from the central bank's president Ilmars Rimsevics.
National economic growth this year would primarily be supported by an upswing in such sectors as trade, transport, storage and communication, construction, manufacturing, financial intermediation, real estate, renting and other business activities as well as other sectors.
According to preliminary estimates regarding Latvia's economic growth in January, in early 2005, growth rates slowed down in manufacturing and several performance indicators of the transport sector declined, whereas retail trade turnover climbed substantially.
In January, the seasonally adjusted volume index of industrial output recorded a year-on-year pick-up of only 0.4 percent. Turnover at Latvian ports decreased by 6.5 percent. Oil product transportation by pipeline decreased likewise by 7.6 percent.
In January, compared with the corresponding period the previous year, the working-day-adjusted turnover of retail enterprises at constant prices increased by 24.1 percent.
In February 2005 on average, consumer prices in Latvia went up 6.9 percent year-on-year and 0.9 percent month-on-month. At the same time, core inflation declined to 4.3 percentage points of total inflation, implying that the impact of the demand-side factors on prices abated, while that of the supply side factors became stronger, explains Rimsevics.
The Latvian economy developed briskly in 2004, with gross domestic product posting a record high growth of 8.5 percent in terms of constant prices, which was consistent with Bank of Latvia projections. This growth was supported by strong demand, both domestic and foreign, providing for a notable expansion of the major sectors of the economy: construction, transport, storage and communication, trade and manufacturing. A number of other sectors also recorded substantial improvements.
Regarding the overall government consolidated budget, which is composed of the central government consolidated budget and the local government consolidated budget, it recorded a financial surplus of LVL 10.6 million in January, which was the result of a LVL 12.4 million financial surplus in the local government consolidated budget and a LVL 1.7 million financial deficit of the central government consolidated budget, writes Rimsevics.
In January, financial surplus was smaller than the year before, as the increase in the central government consolidated budget expenditure, 50.7 percent, exceeded the increase in the budget revenue - 32.6 percent. According to preliminary data, the central government consolidated budget recorded a financial deficit in February 2005, but figures for the local government consolidated budget are yet to become available.
The total central and local government debt in January was LVL 1.068 billion, an increase of LVL 6.8 million in one month.
Dace Karklina LETA
Copyright © LETA
National economic growth this year would primarily be supported by an upswing in such sectors as trade, transport, storage and communication, construction, manufacturing, financial intermediation, real estate, renting and other business activities as well as other sectors.
According to preliminary estimates regarding Latvia's economic growth in January, in early 2005, growth rates slowed down in manufacturing and several performance indicators of the transport sector declined, whereas retail trade turnover climbed substantially.
In January, the seasonally adjusted volume index of industrial output recorded a year-on-year pick-up of only 0.4 percent. Turnover at Latvian ports decreased by 6.5 percent. Oil product transportation by pipeline decreased likewise by 7.6 percent.
In January, compared with the corresponding period the previous year, the working-day-adjusted turnover of retail enterprises at constant prices increased by 24.1 percent.
In February 2005 on average, consumer prices in Latvia went up 6.9 percent year-on-year and 0.9 percent month-on-month. At the same time, core inflation declined to 4.3 percentage points of total inflation, implying that the impact of the demand-side factors on prices abated, while that of the supply side factors became stronger, explains Rimsevics.
The Latvian economy developed briskly in 2004, with gross domestic product posting a record high growth of 8.5 percent in terms of constant prices, which was consistent with Bank of Latvia projections. This growth was supported by strong demand, both domestic and foreign, providing for a notable expansion of the major sectors of the economy: construction, transport, storage and communication, trade and manufacturing. A number of other sectors also recorded substantial improvements.
Regarding the overall government consolidated budget, which is composed of the central government consolidated budget and the local government consolidated budget, it recorded a financial surplus of LVL 10.6 million in January, which was the result of a LVL 12.4 million financial surplus in the local government consolidated budget and a LVL 1.7 million financial deficit of the central government consolidated budget, writes Rimsevics.
In January, financial surplus was smaller than the year before, as the increase in the central government consolidated budget expenditure, 50.7 percent, exceeded the increase in the budget revenue - 32.6 percent. According to preliminary data, the central government consolidated budget recorded a financial deficit in February 2005, but figures for the local government consolidated budget are yet to become available.
The total central and local government debt in January was LVL 1.068 billion, an increase of LVL 6.8 million in one month.
Dace Karklina LETA
Copyright © LETA
