Economy of Latvia after Euro adoptation
Five months have passed since the change of official currency in Latvia. Euro, the currency that replaced Latvian Lats, has brought some changes to the Latvian economic system.
Euro and positive changes
Only 2 months left for the exchange of last Latvian lats and then they will be gone for ever as form of a legal payment method. With the exchange frustration gone from most of the citizens as they are already used to using the new currency and the slight increase in prices, the Euro seems to bring some good things - an increased growth rate of business. With easier transactions between EU countries and less fees to pay on currency exchange, Latvia has become a great place for your business needs. With only 15% of corporate tax, one of the lowest in the Europe Union, and easened incorporation of business.
Latvian Lats - a past symbol
The new currency seems to bring only good news, despite the pessimistic attitude from conservative citizens of Latvia. Including the change to another currency. The original currency Lats, where a great symbol of freedom for the people of Latvia, as just recently the country itself won its freedom. For some letting go of such a symbol may prove to be quite difficult.
Bringing a united currency in to the economic system of Latvia can only prove as an improvement for businesses. In the first couple of months after the change to Euro inflation followed, but after that the inflation seemed to remain on a constant relatively unchanging curve.
Statistic of the first quarter
A fear of skyrocketing prices may have been a bit unreasonable, but the latest price related studies state:
Sales of goods
9% of all the consumer product prices have increased from 1 to 15%, 7% off all good prices have decreased couple of % and the rest 84% of the prices have not changed. The sales of retail goods have increased by 2.6%, and overall export of non consumables has increased by 3.6%. The sales of consumer goods are expected to rise even more in the following year of 2014, caused by the improvement in the labor market and increased income.
The cost of building real estate in Latvia has increased by about 1.3%.
The year 2013 brought positive changes to the job market, lowering the unemployment rate of from 15% to around 12%. 2014 May not bring such a dramatic change but still expected unemployment rate at the end of this year is 10,7%. Breaching the 10% mark by 2015.
Categories: -Business -Law -Latvia
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