In Hungary wages rise much faster than productivity
The number of insolvencies lower in Latvia and Estonia
Imported gas in Romania reaches a third of total consumption
China extended the availability of its loan offered to Ukraine so Ukraine will not lose the opportunity of using “long” and competitively priced funds for modernization of the energy industry. It should also be a sufficient time for all Ukrainian agencies to agree on the use of these funds, the Interfax informs.
The loan agreement was signed between Naftogaz Ukrainy and China Development Bank and it’s USD3.65bn which will be available for use until December 25th, 2017.
“The Chinese side made the decision at a meeting of the Trade and Economic Cooperation Subcommittee of the Commission for Cooperation between the governments of Ukraine and China on August 25th,” Naftogaz informs in its press release.
Real wages in in the business sector are increasing much faster than productivity, the Budapest Business Journal reports. According to experts, this is due to the lack of manpower.
The portal quotes Győző Eppich, economist at OTP in Budapest, saying that the link „should be restored but before it does either productivity should be boosted significantly or the rate of real wage growth should drop”. He adds this cannot happen in the short term.
„Loosening of the relation between real wages and productivity will not dent the country’s competitiveness meaningfully, because all of the countries in the region struggle with labor shortage and wage growth picked up in those economies too. Not to mention that the forint depreciated more since 2010-2011 than its regional peers, which provides a buffer for wage hikes,” Eppuch says.
The Baltic Course publishes findings of the Coface, a risk insurer that operates in 100 countries in the world, report. According to the report in 2015 insolvencies dropped in 9 of the 13 Central and Eastern European (CEE) countries. The most significant improvement was noted in Romania: in 2015 the number of insolvencies dropped by 49.5 per cent compared with 2014. Also in Hungary the drop was significant: by 44.2 per cent (in the same period). In Latvia the number fell by 13.8 per cent and in Estonia by 9.7 per cent.
The worst results were observed „in Ukraine and Lithuania, where insolvencies spiked 20.8 per cent and 16.3 per cent respectively. In these countries insolvencies were reported mostly in the commercial, construction and manufacturing sector”.
According to the Energy Regulatory Authority, imported gas will provide for 30 per cent of the national consumption in September 2016. Romania Insider reports that only a small part of the imported gas will be stored for the winter season. Most of it will go on the competitive market and will be used by big consumers.
In September 2015 imports of natural gas amounted to 0.03 per cent of the consumption, and in 2014, it reached 1.66 per cent of the consumption.
What’s up in indexes
BUX (of Budapest) was up 0.68 per cent d/d and up 16.73 per cent from year-end. It decreased from 27733.77 index points Friday, August 26th to 27921.92 index points.
BET (of Bucharest Stock Exchange) increased form 6983.49 index points Friday, August 26th to 6998.53 index points Monday, August 29th. So it’s up 0.19 per cent d/d. From year-end it dropped by 0.05 per cent.
PX (of Prague Stock Exchange) dropped by 0.03 per cent – falling from 853.19 index points Friday, August 26th to 852.94 index points Monday, August 29th. From year-end it dropped by 10.81 per cent.
WIG20 (of Warsaw) decreased from 1775.90 index points Friday, August 26th to 1777.35 index points Monday, August 29th. So it’s up 0.08 per cent d/d. From year-end it dropped by 4.40 per cent.
OMXT (of Tallinn) dropped by 0.29 per cent – falling from 998.22 index points Friday, August 26th to 995.32 index points Monday, August 29th. From year-end it’s up 10.72 per cent.
OMXR (of Riga) increased from 637.48 index points Friday, August 26th to 644.60 index points Monday, August 29th. So it’s up 1.12 per cent d/d and up 8.45 per cent from year-end.
OMXV (of Vilnius) dropped by 0.21 per cent d/d – falling from 537.88 index points Friday, August 26th to 536.75 index points Monday, August 29th. From year-end it’s up 10.44 per cent.
The bourse of Bratislava was closed Monday, August 29th. SAX closed at 313.83 index points Friday, August 26th. From year-end it’s up 7.35 per cent.
SOFIX (of Sofia) dropped by 0.51 per cent d/d – falling from 473.77 index points Friday, August 26th to 471.34 index points Monday, August 29th. From year-end it’s up 2.27 per cent.
UX (of Kyiv) was up 1.03 per cent d/d and up 2.41 per cent from year-end. It decreased from 695.23 index points Friday, August 26th to 702.37 index points Monday, August 29th.
CROBEX (of Zagreb) dropped by 0.05 per cent – falling from 1808.54 index points Friday, August 26th to 1807.66 index points Monday, August 29th. From year-end it’s up 6.99 per cent.