RIGA - Although entrepreneurs in Latvia are still generally pessimistic about the future, their outlook has improved in comparison with the spring, shows the latest LCCI Economic Index released by the Latvian Chamber of Commerce and Industry (LCCI).
Meanwhile, the entrepreneurs have become more pessimistic about the current situation as compared with their mood in the spring.
Asked about the overall business activity in the past six months, 85.6 percent of respondents in the LCCI survey said that it had worsened, with 56 percent of the surveyed entrepreneurs saying that the situation has deteriorated in their respective industries. In 43.1 percent of cases respondents admitted deterioration of their companies' finances, 47.7 percent said that profitability had dropped and 57.7 percent said that their companies' turnover had contracted.
In 63.8 percent of cases entrepreneurs said that competition in their respective sectors had remained unchanged, in 59.7 percent of cases investment volumes had not changes over the past six months and in 61.2 percent of cases the number of employees in the companies had remained unchanged.
The respondents' forecast for the following six months were also rather pessimistic, with 59.4 percent anticipating general weakening of economic activity in Latvia and 46.2 percent expecting decreased activity in their respective industries.
Meanwhile, most entrepreneurs do not expect competition, investment volumes and the number of employees to change in the next six months. Also, 46.9 percent of respondents did not expect changes in profitability, 43.7 percent did not anticipate their companies' financial situation to change and 39.6 percent did not expect changes in their companies' turnover.
SKDS research center conducted the survey for the LCCI, polling 750 entrepreneurs from various regions of Latvia, representing various sectors of the economy. The survey was conducted from September 23 to October 20.