61% of Latvian exporters are planning to increase exports this year – 4% more than the number of exporters who said so last year. This was determined in the ongoing Citadele Index study that is conducted by the Citadele Bank and the SKDS public opinion research firm.
53% of managers at companies, which export things, say that they expect an increase of up to 10% in exports this year, as compared to 2012. 27% are hoping for an increase of 11 to 30%, only 6% believe that they will increase exports by 31 to 50%, and 7% suggest that they will increase exports by more than 50%.
“Businesspeople are far more cautious about export growth volumes this year than they were last year, but the total number of companies which are planning to increase exports is gradually increasing,” says Citadele Bank board member Santa Purgaile. “That shows that exports are becoming increasingly important in the operations of companies. Because Latvia’s domestic market is comparatively narrow, it is commendable that our businesses are looking at other markets, planning increased exports, and thus making more of a contribution toward economic development in Latvia.”
Purgaile also says that exporting firms, which have received financing from Citadele, have been increasing export volumes in recent years. “This is largely down to restructuring which many businesses have conducted during the past several years to overcome the crisis,” she explains. “The result is that companies are increasingly focusing on external markets to find new export opportunities and diversify export markets.”
Asked about last year, most respondents in the survey said that their export volumes in 2012 increased or remained the same as in 2011. 44% said that exports increased, while 38% said that they did not change. 18% reported that exports decreased in 2012.
31% of the companies which were represented in the survey exported 10% of their output last year, 33% exported 11-50%, 10% exported 51-80%, and the remaining exported all or nearly all of their products or services.
21% of respondents are not planning to increase exports this year, as against 25% late in 2011, when they expressed forecasts about last year. In both cases, 18% of respondents said that they could not come up with a precise prediction as to export volumes.
About Citadele Index
Citadele Index research is conducted on a quarterly basis in order to find out entrepreneurs’ evaluation of the present situation and prognoses for the next 6 months in such fields as general economic activity in the State and corresponding business field. The previous research, which was carried out in last December polled 750 heads of companies of various sizes from all regions of Latvia representing various spheres of national economy. Citadele Index research is conducted by Citadele Bank in cooperation with market and public opinion research centre SKDS. Last research was done in December 2012.
About Citadele Bank
Citadele is a full-service financial group for both private individuals and companies offering complete portfolio of banking, financial and private capital management services in its home market Latvia and through its international presence. Citadele is the only collaboration partner of American Express® in Latvia and Lithuania who is entitled to issue American Express credit cards. Presently 75% of Citadele Bank is possessed by VAS “Privatizācijas aģentūra” (State JSC Privatization Agency) and 25% plus one share is possessed by the European Bank for Reconstruction and Development.