However, if we look more broadly, all the joy will fade away, since in real terms wages are relatively low, material insecurity of the population is pervasive, and many Latvians lack the financial resources to ensure that the country’s domestic consumption growth becomes a sustainable engine for economic breakthrough and much less increase overall well-being.
Last year, the average salary in the country increased by 11.9% – to 1,537 euros, according to data from the Central Statistical Office (CSO). In terms of dynamics, the rate of wage growth in Latvia has been encouraging for several years now. Much less satisfactory are the figures showing the distribution of workers by wage level.
The rapid rise in wages has largely occurred because workers in Latvia have not been paid properly for a long time, and is also due to the low value created in the economy. While wages are rising in many industries, don’t get your hopes up too high for progress this year. Latvia continues to experience a significant labor shortage, and this is an important factor slowing down business development in a number of large sectors of the economy.
Will the lack of employees cause a ten or ten percent increase in average wages this year? Doubtful. Several economic factors suggest that such expectations are unfounded.
In terms of pace, fast wage growth may continue in the IT industry and some other high value-added industries, but not in the economy as a whole. Expected economic growth this year will be slow and, according to various experts, is unlikely to exceed 1.5-2%.
#awaits #country #year
2024-04-30 13:37:43
