Large enterprises of the Baltic States are most of all concerned about the demand for their goods and services as well as the issue of availability of skilled labour and growing wages. At this time, the business is not in need of borrowed money.
Top 3 sources of concern for big business include:
1) despite the fact that in this year private consumption in all three countries has demonstrated growth, further demand for products or services is the source of concern for 61% of financiers of large enterprises in Latvia, 55% - in Lithuania and 40% - in Estonia;
2) another frequently mentioned reason for concern is wage payment. In Lithuania 51% of financial managers of enterprise are concerned about this problem, in Estonia - 41%, in Latvia - 24%.
3) in all three Baltic countries also the issue of availability of skilled labor is urgent, being the matter of concern for 43% of representatives of large Lithuanian companies, 39% - for Latvian and 33% - for Estonian.
Issues related to labour force still remain on the list of the most significant risks that in the near future may affect the activity of large enterprises in the Baltic States. In all three Baltic countries the unemployment rates are falling, in Estonia they have already reached the level of 6.5%. Due to the reduction in the availability of labour, the concern about labour remuneration tendencies has especially rapidly grown among enterprises in Latvia and Lithuania.
In turn, issues related to finances - interest rates, availability of financing and changes in exchange rates - in fact give not reason for concern to big companies. For example, in Latvia only 5% of big companies care about the problem of access to financing and 7% are concerned about interest rates.
There are two explanations. First, large enterprises in recent years have accumulated money and now are well provided with financial reserves. Second, extremely high competition in Latvian banking sector allows the customers to count on very attractive offers from banks.
A convincing majority of financial directors of large Baltic enterprises are confident that over the next 12 months the interest rates will remain at current level - so is considered by 88% of representatives of major Latvian and Lithuanian companies as well as by 74% of Estonian companies. A relatively small part of the financiers sees the prerequisites for growth in interest rates – it is predicted by 18% of Estonian enterprises as well as by 8% of Latvian and Lithuanian companies.