Speech

Hello dear profesor and collegues! Today I will introduce You with my individual course work about The evolution of national economy and productivity in Latvia.

My presentation will include these parts Economy situation in Latvia, Productivity efficiency, The causes of low productivity, Income, competitiveness and growth opportunities, The growth – sectoral contribution, Productivity raise, The goal 2014, A view in the future, Conclusions. Please feel free to ask questions after my presentation!

1. - From 2005 to 2007 the large external capital inflows stimulated a significant increase in private consumption and investment in Latvia. The average annual GDP growth rate was 10,3%, which was one of the fastest in countries.

* In 2008 and 2009 the global financial crisis affects the stopping external capital inflow, there was a recession.

* Since the end of the 2009 the economic downturn in Latvia has been stopped and growth has resumed.

* Since the economic low point of 2009 third quarter to 2013 first quarter, the GDP has increased by 18%. However, GDP is still about 11% fewer than it was before the crisis in 2007.

* In 2014 first quarter GDP was about 3,6% higher than the previous year first quarter.

* In recent years export has become the driving power for the economy in Latvia. Goods and services exports currently has reached the highest rate in history. In 2012 the export of goods and services grew by 8.3%, but in 2013 first quarter – about 2.9 per cent.

* Export future developments will not only affect the external demand, but also the Latvian producers competitiveness. It should be noted that until now the improvement in competitiveness based on the reduction of labour costs, but in the future will have a crucial role in the ability to increase productivity.

2. - Productivity growth is the most important factor determining long-term hinder national economy. Productivity is the efficiency with which production...