Baltic business leaders believe in continued economic growth

Photo: SCANPIX

Corporate leaders in the Baltic countries believe that economic growth will continue and are planning to increase wages and employee numbers in their own business, it appears from a survey conducted by KPMG.

"The outcome of the survey shows that one believes in continued wellbeing of the economy," KPMG Baltics OU Board Chairman Andris Jegers said in a press release.

Eighty percent of respondents in Estonia, 79 percent in Lithuania and 75 percent in Latvia said they believe that the rate of economic growth will be in the range of 2-4 percent in all the three countries.

In Latvia 9 percent of the business leaders interviewed hoped the economy to grow more than 4 percent this year.

"Of the Estonian entrepreneurs interviewed 76 percent predict a wage increase this year, with 32 percent planning to raise the wages of their employees by more than 5 percent," said Karin Rätsep, head of advisory services at KPMG.

Seventy-one percent of the business leaders in Lithuania and 59 percent in Latvia predicted a wage increase this year. Besides 53 percent of respondents in Lithuania and 36 percent in Estonia and Latvia are planning to increase the number of employees.

The outcome of the survey, conducted already for the fourth time, has proved a good indicator as measured against actual developments later, Jegers said.

In the survey that is the fourth such poll taken in Estonia and third in Latvia and Lithuania, KPMG asks business leaders about their outlook for the economy, the euro, foreign investments, the tax environment, as well as their company's wage and personnel policy.

In all 262 questionnaires were filled out on the level of management board member or owner, including 131 in Estonia.