Highlights:
Annual inflation stands positive
Manufacturing growth has become stronger
Government debt servicing costs have been reduced
"In Focus":
What are the different effects of oil price developments on Latvia's inflation? autori: Oļegs Tkčevs and Andrejs Bessonovs
"Highlights":
* Energy prices keep annual inflation below zero
* Manufacturing growth regains momentum
* Latvia's exports: a zigzag path maintained
"In Focus":
* Latvia's exports to euro area: developments after joining, autore: Daina Pelēce
Highlights:
* GDP growth at 2.6% in 2015
* Current account posted improvement
* Unemployment continues to decrease, but at a slower pace
In Focus:
Zero-based approach to government budgeting, Baiba Traidase
"Highlights":
Economy faces temporary slowdown
Loan portfolio is showing some signs of moderation
External trade activity drops due to slowdown in re-exports
"In Focus":
Retail trade developments, by Daina Paula
Macroeconomic Developments Report. December 2015Latvijas Banka
Based on data from tLatvijas Banka, Central Statistical Bureau of Latvia, Ministry of Finance, and Financial and Capital Market Commission, this publication assesses developments of the external sector and exports, financial market, domestic demand and supply, prices and costs, and balance of payments, and provides forecasts for the economic development and inflation.
Highlights:
- Current account reflects the recovering investment activity
- Annual inflation continues hovering around 3%
- GDP growth exceeds expectations and leads to revised forecasts
In Focus:
- Latvia 2017: Back to growth and structural reforms, by Mārtiņš Grāvītis
"Highlights":
* Energy prices keep annual inflation below zero
* Manufacturing growth regains momentum
* Latvia's exports: a zigzag path maintained
"In Focus":
* Latvia's exports to euro area: developments after joining, autore: Daina Pelēce
Highlights:
* GDP growth at 2.6% in 2015
* Current account posted improvement
* Unemployment continues to decrease, but at a slower pace
In Focus:
Zero-based approach to government budgeting, Baiba Traidase
"Highlights":
Economy faces temporary slowdown
Loan portfolio is showing some signs of moderation
External trade activity drops due to slowdown in re-exports
"In Focus":
Retail trade developments, by Daina Paula
Macroeconomic Developments Report. December 2015Latvijas Banka
Based on data from tLatvijas Banka, Central Statistical Bureau of Latvia, Ministry of Finance, and Financial and Capital Market Commission, this publication assesses developments of the external sector and exports, financial market, domestic demand and supply, prices and costs, and balance of payments, and provides forecasts for the economic development and inflation.
Highlights:
- Current account reflects the recovering investment activity
- Annual inflation continues hovering around 3%
- GDP growth exceeds expectations and leads to revised forecasts
In Focus:
- Latvia 2017: Back to growth and structural reforms, by Mārtiņš Grāvītis
Macroeconomic Developments Report, June 2017Latvijas Banka
Based on data from Latvijas Banka, Central Statistical Bureau of Latvia, Ministry of Finance, and Financial and Capital Market Commission, this publication assesses developments of the external sector and exports, financial market, domestic demand and supply, prices and costs, and balance of payments, and provides forecasts for the economic development and inflation. The publication is available only in electronic form.
"Highlights":
* Manufacturing growth supported by nearly all sectors
* Exports regain pace
* Inflation boosted by global food prices growth while oil prices decrease
"In Focus":
* Comparison of the Baltic States' exports, author Daina Pelēce
"Highlights":
* Healthy growth, but caution warranted
* Inflation growth decelerating
* Recovery of imports increased current account deficit
"In Focus":
* Does the financing from the EU structural funds improve the competitiveness of Latvian businesses?, autors: Oļegs Krasnopjorovs
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
"Highlights":
Strongest growth since 2012
Annual growth of consumer prices slightly lower in July
Tax reform approaching its final stage
"In Focus":
Instant payments: experience the future today! Autori: Harijs Ozols and Deniss Fiļipovs
Latvijas Bankas "Monthly Newsletter", 10/2016Latvijas Banka
"Highlights":
* Substantial increase in high technology sectors
* Inflation is rising, but to a large extent owing to last year's developments
* External trade in August testifies to the power of Latvian cereal exports
"In Focus":
* #reformasLV or why Latvijas Banka cares about education and healthcare?, autors: Oļegs Krasnopjorovs
"Highlights":
* Manufacturing output continues to rise despite weak demand
* Latvian exports sluggish in complex circumstances
* Inflation starting to go up
"In Focus":
Macroeconomic balance maintained in 2016, supply side should be strengthened in 2017, autors: Oļegs Krasnopjorovs
Highlights:
- Annual inflation rose in May, indicating sustained demand
- GDP growth stable and moderate in the first quarter of 2015
- Annual wage growth gradually decreasing
In Focus:
- Economic situation and forecasts – growth slows down, risks remain high; by Igors Kasjanovs
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
"Highlights":
Annual inflation was stable in April
GDP growth maintained by retail trade and impeded by energy sector
Labour market gradually becoming more favourable for employees
"In Focus":
Eurosystem's monetary policy: Expanded Asset Purchase Programme; autors: Egils Kaužēns
Macroeconomic Developments Report, June 2017Latvijas Banka
Based on data from Latvijas Banka, Central Statistical Bureau of Latvia, Ministry of Finance, and Financial and Capital Market Commission, this publication assesses developments of the external sector and exports, financial market, domestic demand and supply, prices and costs, and balance of payments, and provides forecasts for the economic development and inflation. The publication is available only in electronic form.
"Highlights":
* Manufacturing growth supported by nearly all sectors
* Exports regain pace
* Inflation boosted by global food prices growth while oil prices decrease
"In Focus":
* Comparison of the Baltic States' exports, author Daina Pelēce
"Highlights":
* Healthy growth, but caution warranted
* Inflation growth decelerating
* Recovery of imports increased current account deficit
"In Focus":
* Does the financing from the EU structural funds improve the competitiveness of Latvian businesses?, autors: Oļegs Krasnopjorovs
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
"Highlights":
Strongest growth since 2012
Annual growth of consumer prices slightly lower in July
Tax reform approaching its final stage
"In Focus":
Instant payments: experience the future today! Autori: Harijs Ozols and Deniss Fiļipovs
Latvijas Bankas "Monthly Newsletter", 10/2016Latvijas Banka
"Highlights":
* Substantial increase in high technology sectors
* Inflation is rising, but to a large extent owing to last year's developments
* External trade in August testifies to the power of Latvian cereal exports
"In Focus":
* #reformasLV or why Latvijas Banka cares about education and healthcare?, autors: Oļegs Krasnopjorovs
"Highlights":
* Manufacturing output continues to rise despite weak demand
* Latvian exports sluggish in complex circumstances
* Inflation starting to go up
"In Focus":
Macroeconomic balance maintained in 2016, supply side should be strengthened in 2017, autors: Oļegs Krasnopjorovs
Highlights:
- Annual inflation rose in May, indicating sustained demand
- GDP growth stable and moderate in the first quarter of 2015
- Annual wage growth gradually decreasing
In Focus:
- Economic situation and forecasts – growth slows down, risks remain high; by Igors Kasjanovs
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
"Highlights":
Annual inflation was stable in April
GDP growth maintained by retail trade and impeded by energy sector
Labour market gradually becoming more favourable for employees
"In Focus":
Eurosystem's monetary policy: Expanded Asset Purchase Programme; autors: Egils Kaužēns
"Highlights":
GDP posts moderate growth
Reducing influence on inflation of commodity prices is weakening
Latvian producers demonstrate sustained competitiveness
"In Focus":
Quo vadis, Europe? Latvijas Banka international conference on public debt and QE; autors: Olegs Krasnopjorovs
Latvijas Banka Monthly Newsletter
Content:
"Highlights":
- Export growth resists adverse external environment
- Money indicators develop favourably
- Economic sentiment tends to improve
"In Focus":
"Allocation of resources in Latvia improved after the crisis" by Konstantīns Beņkovskis
"Highlights":
* Inflation stabilizes, main risk stems from oil price fluctuations
* Manufacturing retains high growth momentum
* Exports of goods increase volume and diversity
"In Focus":
* Tax reform, autors: Kārlis Vilerts
Latvijas Banka Monthly Newsletter: June 2018Latvijas Banka
Latvijas Banka Monthly Newsletter provides accurate and concise information about the most topical and important developments in the Latvian national economy.
"Highlights":
Consumer prices are on the rise though annual inflation remains negative
Surplus in the current account for the second consecutive quarter
Lending is back
"In Focus":
Macroeconomic forecasts, by: Igors Kasjanovs
Highlights:
In August, annual inflation returns to positive territory
Manufacturing growing fast in July
External complications do not impair Latvia's exports going uphill
Sadaļā In Focus:
Research: Latvia's 2008-2009 wage adjustment stronger than thought before, by Ludmila Fadejeva and Olegs Krasnopjorovs
Highlights:
* Fastest GDP growth in 6 years
* Inflation slightly down
* Dynamic year for retail trade
In Focus.
Four years in the euro area – have the promises come true? author: Egils Kaužēns
Latvijas tautsaimniecības makroekonomiskā attīstība | Septembris 2023Latvijas Banka
Latvijas Bankas prezidenta Mārtiņa Kazāka un Monetārās politikas pārvaldes vadītāja Ulda Rutkastes prezentācija 2023. gada 29. septembrī par jaunākajām ekonomikas prognozēm.
Latvijas Bankas Finanšu pratības daļas vadītājas Aijas Brikšes prezentācija Rīgas Izglītības un informatīvi metodiskā centra seminārā skolotājiem "Drošs internets un droša digitālā finanšu pratība" 2023. gada 29. augustā.
Latvijas Bankas Makroekonomikas analīzes daļas galvenās ekonomistes Baibas Brusbārdes prezentācija seminārā "Aktualitātes ekonomikā" 2023. gada 24. augustā.
Latvijas Bankas Monetārās politikas analīzes daļas galvenās ekonomistes Anetes Kravinskas prezentācija seminārā "Aktualitātes ekonomikā" 2023. gada 24. augustā.
Latvijas Bankas Makroekonomikas analīzes daļas galvenā ekonomistes Dainas Paulas prezentācija seminārā "Aktualitātes ekonomikā" 2023. gada 24. augustā.
Latvijas tautsaimniecības makroekonomiskā attīstība | Marts 2023Latvijas Banka
Latvijas Bankas prezidenta Mārtiņa Kazāka un Monetārās politikas pārvaldes vadītāja Ulda Rutkastes prezentācija 2023. gada 31. martā par jaunākajām ekonomikas prognozēm.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
2. On 8 December 2015, taking advantage of the unique sit-
uation in the financial markets, the Treasury repurchased
its outstanding US bonds maturing in 2020 (yield of
2.889%) and 2021 (yield of 5.491%) at the nominal value
of 650 million USD. In order to finance the operation, new
5-year bonds in the amount of 550 million EUR (yield of
0.532%) were issued on the same day. These transactions
resulted in reduced government debt servicing costs in
the medium term, estimated at around 85 million EUR,
having a positive effect on the state budget balance. Ac-
cording to preliminary data, at the end of 2015 Latvia's
central government debt stood at 8.4 billion EUR (34% of
GDP, expected close to 37% in ESA2010 terms).
In 2016, the Treasury plans to borrow at least one billion EUR in the international financial markets in order to
secure the financing needs of the state and repayment of the 5-year bonds worth one billion USD maturing in
February 2017.
During the first 11 months of 2015, manufacturing output
rose by 4.1% year-on-year in a context of diverse sectoral
developments. By the end of November good results
were observed in the production of computers, electronic
and optical equipment, as well as furniture. The end
of the year was also successful for the largest branch
of manufacturing, the wood industry, which has been
persistently increasing its output over the past few years.
Conversely, recession continued in the manufacture of
wearing apparel and building materials, as well as the
food industry as they showed a weaker performance
than usual. The largest metal producer KVV Liepājas
metalurgs has had both positive and negative effects on
the sectoral growth. After re-launching the company in
March, with promising prospects, the problems in global
metallurgy market persisted resulting in a weaker than
expected performance at the end of 2015. Nevertheless, KVV Liepājas metalurgs' contribution did improve the
overall manufacturing output data.
In December, the average consumer price level rose by
0.3% year-on-year: prices of goods decreased by 0.3%,
while prices of services grew by 2.1%. Meanwhile, the
annual average inflation was 0.2%. Its main leitmotif
throughout the year was declining global prices of food
and energy, thus hindering inflation growth. Nevertheless,
the liberalization of the electrical power market for
households, a slight rise in indirect taxes, an increase
in the public transportation fares in Riga and gradually
improving purchasing power that supported core inflation
contributed positively to the pick-up in prices.
The major contributors to the annual average inflation in
2015 were fuel and heat energy prices (-1.2 percentage
points (pps) overall), dairy product prices (almost -0.3
pp), while the largest upward pressure resulted from
electricity prices (0.9 pp) and several services within
the core inflation – catering, as well as recreational and
cultural services (a total of around 0.2 pp).
1. Highlights Latvijas Banka Monthly Newsletter January 2016
Government debt servicing costs have been reduced
Annual inflation stands positive
Manufacturing growth has become stronger
3. Reporting
period
Data (%)
Gross Domestic Product (GDP)
Real GDP (year-on-year growth)
Real GDP (quarter-on-quarter growth; seasonally adjusted
2015 Q3
2015 Q3
3.3
1.0
Public Finances
General government budget expenditure (since the beginning of the year, year-on-
year growth)
Tax revenue (since the beginning of the year; year-on-year growth)
2015 XII
2015 XII
2.9
4.9
Consumer price changes
Consumer Price Index CPI (year-on-year growth)
Consumer Price Index HICP (year-on-year growth)
12-month average inflation (HICP)
15.01.2016 Average inflation in 2015 was primarily influenced by global resource
prices
2015 XII
2015 XII
2015 XII
0.3
0.4
0.2
Foreign trade
Exports (year-on-year growth)
Imports (year-on-year growth)
13.01.2016 The resilience of Latvian exports tested also in November
2015 XI
2015 XI
2.2
–2.8
Balance of payments
Current account balance (ratio to GDP)
Foreign direct investment in Latvia (net flows; ratio to GDP)
2015 Q3
2015 Q3
–3.0
2.5
Industrial output
Working day-adjusted manufacturing output index (year-on-year growth)
07.01.2016 Manufacturing still lacks notable growth
2015 XI 3.8
Retail trade turnover
Retail trade turnover at constant prices (year-on-year growth) 2015 XI –0.7
Labour market
Registered unemployment (share in working age population)
Job seekers rate (share in working age population)
2015 XII
2015 Q3
8.7
9.7
Monetary indicators
Resident deposits (year-on-year growth)
30.12.2015 Bank attracted deposits have grown substantially
2015 XI 9.6
Sources: Treasury, Central Statistical Bureau of the Republic of Latvia, and Latvijas Banka data.
2. Macroeconomic Data Latvijas Banka Monthly Newsletter January 2016
4. Demand and supply factors have caused global oil prices to decline by 35% in euro terms in 2015. As the oil price is a
significant cost component in the prices on certain goods and services, a change of such a magnitude has quite significant
implications for Latvia's inflation. The plunging oil prices have a direct effect on fuel prices in Latvia. Nevertheless, there
are some nuances as to the way and extent of this influence.
Several economic and political developments have had significant implications for the global oil price dynamics in the last two
years. In 2015, demand and supply factors caused oil prices to decline by an average of 35% in euro terms. The plunging oil prices
had a fairly notable effect on petrol and diesel prices in Latvia as well as affected the harmonised index of consumer prices (HICP).
Oil is refined into fuel and distributed to final consumers via gas stations. The econometric estimates of Latvijas Banka show that
the transmission of oil prices to the prices of petrol/diesel before taxes is complete. This means that the refining and distribution
margins (i.e. the costs and margins from refining crude oil and distribution of fuel) do not respond to the oil price developments in
the long-term, despite elevated volatility of the oil prices in the recent past. On average, fuel producers and retailers do not have
excessively high profit margins from the rises and falls of the oil prices in the long-term. However, there are some deviations in
the short-term. The speed of transmission is quite high: 50% of the oil price increase/decrease is passed on to consumers already
within four weeks, whereas 90% within the span of 10 to 12 weeks (see Chart 1). The transmission of oil prices into petrol prices
is slightly quicker than that into diesel prices. Moreover, our estimates show no evidence of the asymmetric effect in Latvia's case.
This means that the response of fuel prices in Latvia to both rises and falls of the global oil prices is overall similar.
Oil products are subject to indirect taxes: excise tax and VAT account for a major share of the final price of fuel (see Chart 2). The
rate of the excise tax is fixed per 1 litre of fuel and does not depend on the fuel price before taxes. This means that the excise tax
share in the final consumer price increases/decreases along with the falling/rising of oil prices. The contributions of the oil prices
also decrease/increase accordingly. Where the oil price changes by, e.g. 10%, the percentage change of the fuel price (i.e. fuel price
elasticity) is also a variable depending on the oil price contribution. The bigger the contribution of crude oil to the fuel price, the
higher the percentage change of the fuel price. Currently, taxes account for more than a half of the petrol and diesel prices, while
the contribution of the oil price has been lower at about 30% in 2015.
Finally, we could also examine the degree of the fuel price elasticity to changes in oil prices and thus also estimate the extent
of the impact from the plummeting oil prices on Latvia's HICP in 2015. The elasticity of fuel prices after taxes depends on the
contribution of oil prices to the consumer prices of fuel. In 2014, contribution was around 37%. This means that a 10% year-on-year
decline in oil prices as compared to 2014 would translate in a 3.7% reduction of fuel prices. Oil prices fell by an average of 35% in
euro terms in 2015, resulting in a downward effect of 13.2% on fuel prices and a 0.8% decrease of the HICP (i.e. the contribution
of the declining oil prices to HICP inflation amounted to 0.8 percentage point). The beginning of 2016 saw further declines in oil
prices. If this trend persists, oil prices may continue having a significant negative impact on inflation this year as well.
What are the direct effects of oil price developments on Latvia's inflation?
3. In Focus Latvijas Banka Monthly Newsletter January 2016
Dr. oec. Andrejs Bessonovs
Senior Econometrist
Monetary Policy Department
Latvijas Banka
Dr. oec. Oļegs Tkačevs
Chief Econometrist
Monetary Policy Department
Latvijas Banka