Latvia’s industrial production declined by 4.5% in 2023 compared to 2022, according to the Central Statistical Bureau (CSP), LSM reported. Output in manufacturing decreased by 4.5%, in electricity and gas supply by 0.8%, and in mining by 19% over a year. The drop in manufacturing output was the largest annual decline since 2009. Martins Abolins, economist…
Latvian financial institutions, including banks, generated total profits of EUR 573.5mn in 2023, which was up 75% from EUR 326.3mn in 2022, according to data from the Bank of Latvia, LETA reports. The total assets of monetary financial institutions amounted to EUR 27.874bn at the end of 2023, which was up 3% from EUR 27.056bn…
Food prices in Latvia will grow by less than 4% in 2024, Ieva Opmane, economist at the Bank of Latvia, forecast, LSM reports. The price hike will be higher than average inflation but much less than in 2023 and 2022, she said. The rise in food prices will depend on consumer income, energy prices, harvests,…
Latvian banks made a total profit of EUR 350.312mn in the first half of 2023, which was up 2.6 times from EUR 132.526mn in the corresponding period of 2022, according to data from the Bank of Latvia, LETA reports. The banking sector’s overall profit for the first six months of 2023 was higher than for…
The number of non-cash payments in Latvia totalled 394.2mn in the first half of 2023, which was 10% more than in the same period of 2022, the Bank of Latvia reported. The total value of non-cash payments amounted to EUR 150.7bn, which was up 26% from a year earlier. The average number of payments was…
Latvia’s central bank, the Bank of Latvia, supports the Finance Ministry’s plan to introduce a mandatory requirement that banks pay corporate income tax on their profits in advance, LSM reports. Martins Kazaks, governor of the Bank of Latvia, argued that the solution should be permanent, thus ensuring that banks contribute to the state budget every…
Latvia’s Economy Minister, Ilze Indriksone, said that the state should not intervene in the food market, LSM reports. Earlier, Agriculture Minister Didzis Smits insisted that market intervention was necessary due to the high food prices. He suggested establishing a special regulator to monitor food prices in shops. Indriksone agreed that Latvia’s large supermarket chains, Maxima…
Latvia’s President, Edgars Rinkevics, met with the governor of the Bank of Latvia, Martins Kazaks, to discuss issues related to the banking and financial sector, Baltic News Network reports. The officials noted that high lending costs weakened banks’ interest in providing lending services. Rinkevics called for a “radical change of direction” from Latvian commercial banks,…
While Latvia’s economy is generally resilient and the labour market remains strong with low unemployment, the economy will still face significant fragility in 2023, Martins Kazaks, president of the Bank of Latvia, warned, LSM reports. Speaking in an interview on LTV, Kazaks emphasised the need for economic transformation in order to avoid falling behind other…