Latvian companies' assets are growing

There was a notable increase in investments of non-financial companies in October, which also stated the general money availability. The demand for cash reduced slightly at the same time.

The growing assets of companies and still impressive output and export indexes motivated banks to continue increasing crediting in the business sector. In October, the surplus if issued credits to non-financial companies by 20.5 million LVL more, while this same index increased by 166.9 million LVL in the last seven months.

The proportion of cash in circulation reduced slightly, while the proportion of fixed-term deposits reduced significantly, marking a notable transition to using banks for transactions, rather than deposits. The growing mood of consumers and increase of private consumption contributed to the increase of corporate assets by 95.8 million LVL, while household assets increased by only 5 million LVL.

The total amount of household assets reduced in the last months down to its highest post-crisis level. This is related to a known amount of precautions in making large purchases in the first half of the year. The dynamics of household assets in the period of September-October shows more rapid money spending with an impressive positive impact on the growth on national economy.

October was marked with mostly positive tendencies, the continuation of which can be expected in the coming months as well. The positive development of the country’s national economy and the increase of export will ensure further increase of corporate assets, which will gradually improve the formation of household assets. Meanwhile, the demand for cash will notable drop after the seasonal increase of the end of the year, because the proportion of cash Lats will definitely add to the households’ bank deposits after the decision to join Eurozone.