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Central bank says Latvia needs to increase productivity

Source: Xinhua| 2018-09-15 01:39:31|Editor: Shi Yinglun
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RIGA, Sept. 14 (Xinhua) -- The Latvian economy needs to increase productivity and use smarter methods in organizing production processes, the central bank of Latvia said on Friday.

"The only long-term solution is to increase productivity. It needs investment and smarter methods when organizing production processes, which in turn requires knowledge and qualifications," vice-president of the Bank of Latvia Zoja Razmusa told a press conference here.

She said that growth of wages currently exceeds that of productivity, and that may harm development in the long term.

To achieve the same level of well-being as in Western Europe, Latvia needs to significantly increase spending for science, research and development, the vice president of the Bank of Latvia noted.

"Our level of spending for research and development at the moment is the lowest in the European Union, and it is truly alarming in the perspective of future development," Rasmusa noted.

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