Annual SCCL Macro Outlook in September 2024
Our annual MacroOutlook, organized in collaboration with SEB Latvija, Swedbank Latvija, as well as Rīgas Ekonomikas augstskola - Stockholm School of Economics in Riga, gathered a full house of business owners and managers to get the latest updates on the current economy and forecasts for the future, both domestically and globally.
Thank you to all the attendees, and a special thanks to Talentor Latvia for summarizing the main important topics, which we are sharing below:
1. Latvia’s largest export partners are our neighboring countries, Estonia and Lithuania, however, export volumes, particularly in service exports, are facing difficulties. It would be beneficial to shift focus to further foreign markets, which would in turn promote higher growth and stability, as well as decrease probability of volatility from the Baltic export partners.
2. While purchasing power in Latvia has reached pre-pandemic levels (2019), consumer confidence is still considered low – the majority of the population feels safer saving money than spending it. This might suggest concerns about future economic stability, even if their incomes or ability to buy goods have improved.
3. The labor market is performing relatively well, with unemployment rates staying low - below 7%. Low unemployment boosts consumer spending, drives business growth, and supports overall economic stability since more people have a stable income that they can contribute to the country’s economy.
For businesses, now is a great time to attract top talent, as job seekers are prioritizing financial security and stability.
Companies that offer reliable employment, competitive salaries, and long-term growth opportunities will stand out. By addressing these needs, businesses can secure skilled professionals and build a loyal, stable workforce. Searching for foreign cooperation partners and employees is also essential to boost growth.