LCCI Economic Index: Latvian entrepreneurs are slightly more optimistic about the future than in spring

Although Latvian entrepreneurs are generally negative about the future, the indicators are more optimistic than at the beginning of the Covid-19 crisis in the spring, but they are worried about the planned changes in the tax system, according to the Latvian Chamber of Commerce and Industry (LCCI) study “Economic Index”.

“Economic Index” is a study commissioned by the Latvian Chamber of Commerce and Industry and implemented by the Market and Public Opinion Research Center SKDS.

Although the general mood of entrepreneurs has slightly improved since the beginning of the Covid-19 crisis in the spring, it is still a big minus sign. There are both structural differences. In the spring, the relative mood of entrepreneurs was even with a slight plus sign, but the outlook for the future was very bleak.

Director of the SKDS Research Center Arnis Kaktins

–

“We see that the assessment of the current situation, ie how your turnover has changed, profitability, or whether you have hired or fired more, has a rather big minus sign. Far more entrepreneurs say things have gone down very significantly. The outlook for the future is not so bleak anymore, but it is also still a pretty deep minus sign. ”

–

It is important to add that the last measurement was taken from September 23 to October 20, before the state of emergency was declared again in Latvia. Now the level of pessimism would probably be higher.

President of the Latvian Chamber of Commerce and Industry Aigars Rostovskis

–

“Continuing to drive these tax changes and raising taxes for many people at this critical time is madness. There will be a huge circle of people in society, who will not care who will come. They will oppose these decisions and such rule. It will be a very good place for populism in the next election. “

–

It should be recalled that the government, together with next year’s state budget, is driving far-reaching changes in the so-called preferential tax regimes, which employ about a third of the workforce.

Although the Latvian Chamber of Commerce and Industry calls on the government not to rush into changes in the tax system in these difficult times, it is unlikely that the coalition will reverse this issue.

– .