Businesses will be forced to raise wages, says Finance Minister

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Due to economic growth, and the lack of human resources, businesses will be forced to start paying higher salaries to their employees, Finance Minister Dana Reizniece-Ozola told Latvian Radio this morning.

She said that economic growth forecasts are good, as the national economy continues to develop. This is because of two reasons - one of them is EU financing, which increases investments (approximately €400 million this year).

These investments stimulate other sectors, like, for example, the construction sector. The second factor stimulating the economy are tax reforms.

However, the minister added that there is still a string of other problems. She said that even though the unemployment level continues to shrink, the employment level is not increasing.

This means that there is a human resource deficit, which could slow down further economic development.

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