Baltic business leaders who participated in KPMG survey see signs of confidence as regards Estonian, Latvian and Lithuanian economies and the outlook for companies, reveals KPMG survey ‘Pulse of Economy 2013’.
Baltic business leaders who participated in KPMG survey see signs of confidence as regards Estonian, Latvian and Lithuanian economies and the outlook for companies, reveals KPMG survey ‘Pulse of Economy 2013’.
This is reflected by both the faith in further GDP growth of two to four per cent and an intention to raise salaries and hire more staff, according to KPMG Baltics, The Baltic Business News reports.
For the fourth year in Estonia and third year in Latvia and Lithuania, KPMG asked business leaders in Estonia, Latvia and Lithuania to share their opinions on their national economies, the euro, foreign investments, tax environment and also on companies’ remuneration and staffing policies. The web-based survey received responses from 262 leading companies (including 131 from Estonia) represented either by a management member or the owner.
The results of the survey indicate ongoing trust in solid performance of the economies.
“Economic growth in all three countries will range from two and four percent – this is an opinion shared by 80 per cent of the Estonian, 79 per cent of the Lithuanian and 75 per cent of the Latvian respondents while about nine per cent of the Latvian respondents think the economy can grow even more than four per cent in 2013″, said Andris Jegers, Chairman of the Management Board of KPMG Baltics OÜ.
“In Estonia the survey was conducted for the fourth time already and based on the past experience, estimates expressed in the survey have been in line with the actual results – the prospect being boosted by the fact that in Estonia key decision makers; i.e. company owners and CEOs, have been active in responding to the survey,” said Jegers.
Business leaders’ conviction that salaries are going to increase has become stronger in last three years. “This year 76 per cent of Estonian respondents forecast a rise in remuneration with 32 per cent intending to raise salaries for more than five per cent. A rise in salaries is also anticipated by 71 per cent of Lithuanian and 59 per cent of Latvian entrepreneurs. Besides, 53 per cent of Lithuanian and 36 per cent of both Estonian and Latvian respondents intend to raise their staffing numbers,” said Karin Rätsep, head of Advisory Services of KPMG Baltics OÜ, commenting on the survey results.
Joel Zernask, head of Tax and Legal Services of KPMG Baltics OÜ, said this time more attention was focused on tax issues that could have an impact on businesses.
“Estonian corporate tax model where tax is imposed only on distributed profits seems popular in all three countries. However, it would be interesting to see if Latvian and Lithuanian businesses would also rejoice when the higher rate effective in Estonia should be applied when it comes to dividend distribution. In addition, at least in Latvia it seems to be a shared opinion that in Estonia no corporate tax exists,” added Zernask.
