About municipalities and economics / day

The classic economic indicators – changes in gross domestic product, inflation, wage growth, productivity dynamics and unemployment – look relatively encouraging in the forecasts of the thinking. For example, wages could grow faster than prices.

It is welcome to assess that the LV Peak is analyzed by the Latvian situation without ignoring the global context. Both geopolitical tensions, which are severely experienced in eastern Europe, and the economic uncertainty created by the US rapidly changing trade tariff policies are emphasized. The ability of the council to look wide is indeed a plus, as in Latvia often on a variety of topics – from demographics to the economy – there is a detachment of the global context and ignoring the fact that similar trends in our country exist in many parts of the world.

In the context of Latvia’s political topicality – the local elections last week – On the economic barometer the insights included in employment. It is noted that the time of co -pandemic has accelerated the automation of jobs and, consequently, the demand for low and medium qualifications has decreased. In addition, the regional differences in the labor market may increase in the future. Already, unemployment risks are higher than the townspeople.

Overall, it can be concluded that municipalities need to think about where the locals will work, especially if the professional skills of these people are uniform and education – modest.

During the pre -election promises, various ideas for business development were often spoken. Political competitors criticized each other for not doing enough to create a dynamic business environment. The tax system was also criticized for not motivating municipalities to fight for investors.

Now, after the elections, when the time of promises and public disputes is over, the elected councilors can begin to take action to increase the well -being of the municipality responsible.

The reality is that there are huge regional contrasts in our country. There are municipalities that have developed business, unemployment are negligible, and there are those in which local economic conditions look sad. We will see whether the problem municipalities will change as a result of the elections over time.