OREANDA-NEWS. October 04, 2011. Entrepreneurs in Latvia are cautiously optimistic regarding the country’s general economic activity, suggests Citadele Index research for the 2nd quarter conducted by Citadele Bank in collaboration with market and public opinion research centre SKDS. After a pause that lasted 2 quarters, the country’s general economic activity index exceeds 50 points, reaching a stable 50.90, reported the press-centre of Citadele.

“Entrepreneurs are the first ones to feel the breezes of the State’s economic recovery and stabilization. However this entrepreneurs’ optimism regarding the country’s general economic situation is indeed very cautious and it is lower than in the 3rd quarter last year before tax reforms took place; it then peaked at 54.16 points,” says Agnese Paegle, Head of Corporate Services Directorate of Citadele Bank.

She emphasizes that “it is very important for the State economy today for the entrepreneur’s feeling of stability and optimism to stray the same and increase furthermore. The new government and all parties elected in Saeima (the Parliament) will soon have to start working on accepting the budget for 2012. The new government will have to form the next year’s budget and tax policy very carefully and do a good job on explaining entrepreneurs and the whole society all the decisions which will be taken for the sake of consolidation. It would be important for the development of entrepreneurship and the State to plan a sustainable budget instead of focusing on short-term consolidation activities. This is crucial for entrepreneurs to be able to plan their business and to know what to expect.”

Citadele Index research shows that entrepreneurs have re-acquired cautious optimism regarding economic activity in their business sector (51.13 index points compared to 47.61 points in the 1st quarter of this year), assessment of the enterprise’s turnover (50.38 points, previously – 47.97) as well as evaluation of the number of employees (50.19 points compared to previous 48.38).

Like previously, entrepreneurs evaluate competition in their business sector positively (56.09 points compared to previous 56.02) and the amount of company’s investments (52.56 points, previously 50.16).

However profitability (48.27 points, previously – 46.28) and the company’s financial condition (48.89 points, previously – 46.87) is evaluated as somewhat pessimistic.

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 June 2011 polled 750 heads of companies of various sizes from all regions of Latvia represent various spheres of national economy.