Staging and Testing

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  • FICIL elects a new Executive Board

    On 7 March, Foreign Investors’ Council in Latvia (FICIL) held its Annual General Meeting (AGM) where the new Executive Board was elected. There are three newcomers to the FICIL Board in 2023 – Ilze Zoltnere, Head of Corporate Department for Luminor Bank, Juris Antužs, CEO and country manager at Enefit Green, Māris Vainovskis, Senior Partner at Eversheds Sutherland Bitāns. Iain Kennedy, CEO of BALTA Insurance Company was re-elected to the Board for another term.

    During the AGM, Chairperson of the FICIL Board, Zlata Elksniņa – Zaščirisnka highlighted accomplishment over the last year emphasising FICIL’s change of strategy to re-focus on key areas and subsequent reduction in the no. of work groups. Ms. Elksniņa – Zaščirisnka also presented FICIL’s Financial Report and planned Budget for next year. Chairperson of the Board also gave the floor to present work group leaders to highlight the current topics of discussion and priorities.

    The second half of meeting was joined by the State Secretary at the newly formed Ministry of Climate and Energy of the Republic of Latvia, Līga Kurevska. Currently, in light of the ongoing geopolitical situation, the new ministry sees the need to foster greater sustainability and security of supply. Last year has had immense effect on reducing expenditure of gas while increasing renewable energy. Ms. Kurevska emphasised that measures to achieve green goals have to be balanced in line with economic competitiveness. State Secretary also presented current data in  key areas that will play the largest role in reducing emissions. Members were interested in hearing more about ministries priorities for 2023 and asked whether the new ministry plans to introduce the carrot-and-stick method when it comes businesses green transition.

    Four Board members will continue their work as part of the FICIL Executive Board – Zlata Elksniņa-Zaščirinska, Country Managing Partner PwC Latvija, Reinhold Schneider, Chairman of the Board Schwenk Latvija, Valts Kārkliņš, Large Business Customer Director at BITE Latvia and Līga Abramoviča, CFO at Orkla Latvija.

    FICIL Executive Board is elected for a two-year term and its main responsibility is to develop and strategically guide the work of FICIL. The first Executive Board meeting will be held at the end of March where the Board members will elect the Chairperson and two Vice-Chairpersons and start the preparations for the annual High Council meeting. The 27th FICIL High Council will be held in September.

    Read the full article on the AGM of FICIL.

  • BCC News: NO UK TRADE BOOST TO START 2023

    Reacting to the latest ONS (Office for National Statistics) Trade datafor January, William Bain, Head of Trade Policy at the BCC, said: “There was no big boost to trade volumes to start 2023. Removing cyclical factors in the trade data, goods export volumes to both the EU and rest of the world, over the past year, have remained constant.

    “But goods trade values fell in January. On the imports side this can be partly explained by balancing it against the stronger performance in machinery and transport orders in December.

    “The overall picture over the past three months indicates no upward tick – with total goods import values down by compared with the 3 months before then, and goods export values down by 1.6% in the 3 months to January 2023, 4% over the same timeframe.

    “Services were only moderately better – with import values down by 0.3% over that period and export values down by 2.3%.

    “It is clear that cost of living pressures are hitting consumer incomes globally and this is widely forecast to be a drag on global trade in 2023.

    “Today’s data provides further signals that UK exporters require a year of strong delivery from the UK Export Strategy to provide ballast to their ambitions in 2023.”

    Read the full Press Release here.

    More detail on the ONS data can be found here.

  • Signet Bank Market Review 02/2023

    Signet Bank has published their monthly Market Review for February 2023.

    After a buoyant and positive January, most market participants seemed to be sure that the trend for the whole of 2023 was set. Benchmark yields almost reached their peaks, so an upcoming reduction in interest rates (given expectations of a mild recession and cooling inflation) makes investments in certain market segments appropriate. However, February has dealt unpleasant hands for many. Inflation data showed an unexpected increase, consumer demand turned out to be stronger than expected, and indices of economic activity continued to balance at levels indicating, albeit weak, but economic growth.

    Read the full Market Review here.

  • BCC News: BCC launches three-year gender equity campaign

    The British Chambers of Commerce (BCC) worked with leading panel provider Find Out Now to conduct a landmark survey of more than 4,100 respondents in February 2023. The research found that two thirds of women feel they have missed out on career progression because of childcare responsibilities.

    The survey, the first of its kind from the BCC, looks at the perceived impact childcare, general caring responsibilities and menopause have on a person’s career, as well as the support available to those impacted by the issues.

    Childcare

    Two-thirds (67%) of female respondents who have had childcare responsibilities in the last 10 years felt they missed out on career progression as a result. This includes career development, pay rises and/or promotions. For male respondents who have had childcare responsibilities, 35% believed they missed out.

    Almost two-thirds (62%) of female respondents said they would prefer to take time from paid work for childcare responsibilities, compared to 55% of male respondents.

    General caring responsibilities

    77% of male respondents believe there is not sufficient support available for people with non-paid caring responsibilities for elderly or disabled relatives or friends. This figure increases to 86% for female respondents.

    For those who have had caring responsibilities in the last 10 years, an equal proportion (52%) of males and female respondents felt they missed out on career progression as a result of their duties.

    Menopause

    Almost three quarters (74%) of female respondents feel there is not sufficient support for those experiencing menopause.

    One in three (34%) female respondents who have gone through menopause felt that it impacted their career negatively.

    However, there is a higher level of concern about the impact of menopause on a woman’s career amongst those who are yet to experience it. Almost half(43%) of female respondents believe they will miss out on career opportunities due to menopause.

    Levelling Up for Women in the Workplace

    The BCC is committed to facing these challenges head on by levelling up forwomen in the workplace, through an urgent three-year Chamber campaign.

    The campaign will be based on a three-point plan, to include:

    1. Short-term action: Convene employment experts, Chamber CEOs and employers to create a Chamber Workplace Equity Commission.
    1. Medium-term work: The commission to analyse research findings and case studies, to develop policies for Government and best practices for businesses enshrining equity in the workplace.
    1. Long-term goal: Re-run the same survey with the aim of moving the dial on the findings we are publishing today.

    To see the data tables this release relates to, click here: BCC IWD research. 

    Read the full press release.

  • BCC Webinar “Business Opportunities from UK Trade Deals”

    British Chambers of Commerce (BCC) invites you to their free webinar “Business Opportunities from UK Trade Deals”.

    Trade deals with New Zealand and Australia are coming to fruition. The government is seeking to improve the EU-UK Trade Cooperation Agreement (TCA) and join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

    Answering these important questions:

    How are businesses utilising the deals already in place?

    How can you benefit from them?

    Chair: Liam Smyth, Director of Trade Facilitation – British Chambers of Commerce / Managing Director – ChamberCustoms

    Speakers: 

    • Amanda Brooks CBE, Director General for Trade Negotiations, Department for Trade and Business
    • William Bain, Head of Trade Policy, British Chambers of Commerce

     

    Date&location: Thursday 23 March, Online

    Time: 11:00 – 12:00 (UK time)

    Price: for free

    More information about the webinar. 

    Register here. 

  • PricewaterhouseCoopers: Baltic CEO Survey

    PricewaterhouseCoopers (PwC) conducts a global CEO survey each year. The most recent survey was conducted online over the period from 28 November 2022 to 9 January 2023. PwC interviewed 323 Latvian, Estonian and Lithuanian CEOs: 47% were women and 49% were men, but 5% did not wish to state their gender/sex. Respondents come from sectors such as trade, finance, construction, manufacturing, IT and telecommunications, health care, and transport. The findings of the survey are the following…

    2022 brought more turmoil to the Latvian economy, businesses and people. When it seemed that we had overcome one crisis and learned to live in the post-pandemic world, another crisis arrived, one that is still difficult to grasp. The Russian war in Ukraine, the energy crisis and the fast-growing rate of inflation make Baltic CEOs more pessimistic than they were a year ago about global and Baltic economic prospects, but they are more optimistic about their companies’ own prospects. They see the need for change and they are also thinking about the steps they need to get there, according to PwC’s Baltic CEO Survey 2023, which interviewed 323 CEOs in Latvia, Lithuania and Estonia.

    According to a “quick” assessment published by the Central Statistical Office in January, Latvia’s GDP rose 1.8% in 2022 compared to 2021. And the European Commission forecasts that the EU economy will avoid a downturn and its growth rate will reach 0.8% in 2023. More than a half of Baltic CEOs (51% in Latvia/Estonia and 55% in Lithuania) expect that the global economy will see a downturn in the next 12 months. The outlook is similar for their national economies – a downturn is expected by 63% of CEOs in Latvia, 62% in Estonia and 40% in Lithuania this year. However, CEOs in Europe and globally are even more pessimistic – a downturn is expected by 74% of CEOs in Central and Eastern Europe (CEE) and 75% in Western Europe, while the global percentage has reached 73%, the most pessimistic outlook in the last decade.1

    Despite the geopolitical and economic turmoil, Baltic CEOs stay confident about their companies’ revenue increase over the next 12 months (46% in Latvia, 53% in Lithuania and 45% in Estonia). Baltic CEOs are also confident about their companies’ ability to overcome the challenges and they expect stable revenue growth over the next three years (80% in Latvia, 89% in Lithuania and 83% in Estonia), while only 50% of CEOs in CEE were confident about that.

    Major threats

    When asked about threats that are likely to affect their business in the next 12 months, Baltic CEOs named three:

    • Geopolitical conflict (cited as the main threat by CEOs in Latvia and Lithuania)
    • Inflation (the main risk in Estonia)
    • Energy crisis

    These threats were far less relevant last year, when labour shortage was cited as the main challenge, but this year 80% of CEOs in Latvia, 82% in Lithuania and 50% in Estonia are concerned about threats posed by the geopolitical conflict.

    To mitigate these threats, CEOs plan to diversify their product and service offerings (42% in Estonia, 37% in Latvia and 25% in Lithuania), improve cybersecurity and data privacy (41% in Estonia, 35% in Lithuania and 28% in Latvia), look for and expand into new markets (40% in Lithuania, 32% in Estonia and 25% in Latvia).

    A third of CEOs in Latvia (31%) and Estonia (32%) do not think their companies will be economically viable a decade from now if they continue on their current path (47% in Lithuania). Global CEOs, too, are more pessimistic than their peers in Latvia and Estonia. For example, 45% in CEE do not think their companies will be economically viable a decade from now. However, Baltic CEOs are aware of the situation and willing to take appropriate steps to avoid this by investing in the automation of processes and systems, labour upskilling, technology implementation etc.

    Full survey findings are available here. 

  • BCC News: Trade Update

    The Trade (Australia and New Zealand) Bill final stages in the House of Lords are due on 14 March. Once it receives Royal Assent the UK- Australia and UK-New Zealand trade agreements will enter into force soon after in the spring. We will have further updates in the coming weeks on the key points for UK businesses from these new agreements and how SMEs can use them.

     

    The UK’s accession negotiations to the 11 nation The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trade agreement appear to be in their final phase. We will have updates available on what this agreement means for business once the negotiations conclude.

     

    The EU’s Carbon Border Adjustment Mechanism regulation will be in force by the autumn. From 1 October UK business’ customers in the EU will have reporting obligations in terms of iron, steel, cement, aluminium and selected other materials embedded in goods entering the EU Single Market. We will update members on future compliance steps. The text of the regulation is here.

     

    The latest decisions from the Department for Business and Trade on anti- dumping duties applicable to imported rebar steel products from China can be found here. 
    The Department for Business and Trade has launched a new Help to Grow website this week, including guidance for export-facing companies- you can view it here.

     

  • CBRE Baltics News: Baltic Investment Figures Q4 2022

    CBRE Baltics has published the Investment Market report for Baltic Investment Figures Q4 2022.

    The Baltic real estate market saw a decrease in investment activity in 2022, with a total volume of € 1.2 billion, representing a 27% decline from the record-high € 1.6 billion transaction in 2021.

    Read the report. 

  • BCC News: What lies ahead – challenges for UK trade in 2023

    The challenges facing UK exporters in 2023 are significant and it will take a concerted effort by our global network, working alongside the UK Government, to positively shift the dial.

    In 2022, exports increased by 6.7%, once the effect of inflation was removed, but this is still less than the value of goods and services the UK sold overseas in 2018.

    There were also warning signs in the data for the last quarter of 2022, with UK exports falling by 2.9% as economic headwinds continued to blow.

    For 2022, as a whole, the total annual trade balance in goods and services, excluding precious metals, widened by £85.3 billion to a deficit of £108 billion, when compared with 2021.

    The latest BCC data for Q4 of 2022 also paints a stark picture:

    • Most Small and Medium Sized Enterprise (SME) exporters reported no improvement to exports, with 27% reporting decreased export sales in the quarter and 47% reporting no change.
    • Only 26% of SME exporters saw increased export sales.
    • The picture for future orders was even weaker with 28% reporting a decrease against 24% an increase.

    With the World Trade Organisation forecasting global trade growth of just 1% in 2023, down from 3% in 2022, then it would appear there is little to cheer.

    While China’s reopening should ease production supply chains in the long-term, its suddenness could also add to the volatility, and it may create additional supply chain turbulence – if the Covid pandemic continues to impact its economic output.

    But there are some signs of better times ahead. The International Monetary Fund in its World Economic Outlook update in January indicated that global demand may pick up again – particularly in the second half of 2023. GDP growth in China is forecast to be 5.2% in 2023, and 6.1% in India (picking up to 6.8% in 2024).

    If consumer spending does pick up in China, and beyond, then there could be the potential for higher export sales carrying on into 2024. Top UK goods exports to China include vehicles, machinery, electrical equipment and pharmaceuticals.

    Other export markets which UK firms should be keeping an eye on are the EU, US, Switzerland, Canada, Norway, South Korea and Japan.

    But the outlook remains uncertain, and the UK Government must fight the corner of small and medium sized export firms.

    Issues on customs processes and checks arising from the Northern Ireland Protocol require speedy, stable, and certain resolution, as it still looms over the UK’s relationship with both the EU and the US.

    Outside of the EU, the US is our biggest trading partner, and the one that BCC members tell us they are most interested in. Yet progress on free trade talks is stalled, meaning that other, innovative ways to improve trade relations will be needed.

    And as the Good Friday Agreement silver anniversary looms, the UK has a golden opportunity to transform our trading relationship with our two biggest export markets in one fell swoop.

    Resolve the outstanding protocol issues and it should have benefits for UK businesses exporting in both east and west directions, as well as for Northern Ireland.

    This could also help pave the way to dealing with a further challenge that has reared its head on US trade relations.

    Read the full article.

  • KPMG Latvia Moves to New Premises

    KPMG Latvia team is moving to new premises – as of today, 27 February, the KPMG team in Latvia will be located in the business centre VERDE, Roberta Hirša iela 1, Rīga.

    Congratulations to KPMG Latvia with their move to new and modern office!