Latvia Country Risk Report - Business Monitor International - Industry Reports

Latvia Country Risk Report

Latvia Country Risk Report - Business Monitor International - Industry Reports
Latvia Country Risk Report
Published May 26, 2015
47 pages — Published May 26, 2015
Price US$ 1,195.00  |  Buy this Report Now

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Abstract:

Source: Eurostat -- -- --- --- --- --- --- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- ----M-- Estonia Latvia Lithuania Poland ness through job-shedding and non-cost gains (improving quality of products), which has allowed for a significant improvement in profit margins. Other factors not captured in REER helped to support export competitiveness too, such as shifts in the tax burden from labour to consumption and property. ...However, on balance it is clear that Latvia has paid a heavy toll for its chosen path. Devaluation Not A (Wise) Option: One of the main arguments against Latvia s decision to pursue internal devaluation rather than remove the peg of its exchange rate to the euro is that peers who had adopted flexible exchange rate regimes (eg, Poland) experienced much sharper competitiveness gains in the same period. Alternatively, some proponents have examined the change in GDP in the years following historical crisis-driven devaluations in other countries to support this argument, such as Argentina in ----. ...Similarly to Latvia, Argentina had a high level of FX liabilities, in this case due to partial dollarization of the -- Business Monitor International Ltd www.bmiresearch.com political outlook adjustment Barely tackled Pre-crisis excess

...Putting aside the questionable efficacy of these broad aggregates in measuring competitiveness, it appears that other factors such as job shed- ding appear to have played a more significant role in restor- ing competitiveness than internal devaluation. ...Putting aside the questionable efficacy of these broad aggregates in measuring competitiveness, it appears that other factors such as job shed- ding appear to have played a more significant role in restor- ing competitiveness than internal devaluation. In either case, attempts to formulate counterfactual arguments based on the experience of countries which experienced sharp depreciations in their exchange rates post global financial crisis are gener- ally flawed as they fail to take into account the high level of euroisation present in the economy, which would have acted as a major drag on the recovery had Latvia abandoned its peg. Six years on, we examine how the Latvian economy has fared against its peers and the broader eurozone. ...This occurs via a flattering of the unemployment rate, as the majority of emigrants are skilled, working-age citizens seeking employment abroad, - Business Monitor International Ltd www.bmiresearch.com

...Eurozone Poland which reduces the amount of jobseekers at a faster pace than the decline in the labour force. It also affects estimates of the NAIRU, which we believe has increased since the post-crisis period. ...Is it fair to make comparisons using previous years active population? While a small chunk of the decline is due to retirement and a low birth rate, between ---- and ---- recorded net migration was ----,--- (official data likely underestimates true net migration), while the decline in the active working population was around ---,---. This sug- gests that emigration was the primary force behind the drop in the labour force during this period. ...

  
Source:
Document ID
1750-2136
Country
Format:
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "Latvia Country Risk Report" May 26, 2015. Alacra Store. Dec 07, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Latvia-Country-Risk-Report-2026-1716>
  
APA:
Business Monitor International - Industry Reports. (2015). Latvia Country Risk Report May 26, 2015. New York, NY: Alacra Store. Retrieved Dec 07, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Latvia-Country-Risk-Report-2026-1716>
  
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