Download Business Environment in Latvia

H.E. Mr. Alberts Sarkanis, Ambassador to the Czech Republic
Business Environment in Latvia
12.04.2017
Prague
Latvia in facts
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Source: Central Statistical Bureau of Latvia
Capital: Riga
Area: 64 589 km2
Population: 1,95 million (2017)
Official language: Latvian
Dominant foreign languages: Russian, English and German
Currency: Euro (€)
Total national border length: 1862 km
Length of Latvia’s coastline: 494 km
Agricultural land: 18 850 km2 (2015)
Forest land: 35 750 km2 (2014)
Major ports: Riga, Ventspils, Liepaja
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International memberships
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European Union (2004)
> Eurozone (2014)
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United Nations (1991)
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North Atlantic Treaty Organization (2004)
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Organization for Security and Co-operation in Europe (1991)
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World Trade Organization (1999)
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Organisation for Economic Co-operation and Development (2016)
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Macroeconomic
indicators
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Gross domestic product (GDP)
GDP (growth at constant prices, %)
GDP (at current prices, billion EUR)
3.5
30
3.4
3.3
25
25.02
22.76
23.58
24.37
3.1
3.2
3.0
2.9
21.81
20
20.24
2.7
17.92
2.7
2.5
15
2.3
10
2.4
2.1
2.0
1.9
5
1.7
1.5
0
2010
2011
2012
2013
2014
2015
2016
2013
2014
2015
2016 2017 * 2018 *
* Forecast of the Ministry of Finance
Source: Central Statistical Bureau of Latvia
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Monthly wage and employment
2013
2014
2015
2016
2017 *
2018 *
Monthly wage
Average monthly wage of the
employed in the economy, EUR
Growth at current prices, %
716
765
818
859
910
1013
4.5
6.8
6.8
5.0
5.5
5.5
Employment
Employment, thousands
894
885
896
893.3
900
901
Growth, %
2.1
-1.0
1.3
- 0.3
0.2
0.1
Unemployment rate, %
11.9
10.8
9.9
9.6
8.4
8.0
* Forecast
Source: Ministry of Finance Republic of Latvia
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Foreign direct
investments
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Foreign direct investments in Latvia (FDI)
FDI (billion EUR)
Top 5 countries by FDI in Latvia
(million EUR, 2016 Q4)
16
13.36 13.52
14
12
10
11.57
12.08
Sweden
2120
9.36 10.26
Russia
1320
8
Cyprus
6
1310
4
The Netherlands
2
982
0
Estonia
2011
Source: Bank of Latvia
2012
2013
2014
2015
2016
937
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Foreign trade
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Exports and imports of goods (billion EUR)
Import
12.51
12.64
Export
12.65
10.98
9.88
10.02
10.02
12.53
10.4
12.28
10.33
8.54
2011
Source: Central Statistical Bureau of Latvia
2012
2013
2014
2015
2016
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The main export and import partners of goods
(million EUR, % 2015)
Export
Lithuania
1967.31 (18.97%)
Estonia
1203.65 (11.61%)
Russia
833.98 (8.04%)
Germany
6673.64 (6.50%)
Poland
625.80 (6.03%)
Source: Central Statistical Bureau of Latvia
Import
Lithuania
2170.10 (17.31%)
Germany
1411.53 (11.26%)
Poland
1390.80 (11.09%)
Russia
1075.92 (8.58%)
Estonia
948.74 (7.57%)
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Exports and imports of services (billion EUR)
Export
Import
3.90
3.77
4.04
3.85
3.47
1.99
2011
Source: Bank of Latvia
2.15
2012
2.13
2013
2.11
2014
2.28
2015
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The main export and import partners of
services (million EUR, % 2015)
Export
Import
The United
Kingdom
Lithuania
388.25 (9.61 %)
245.99 (10.80%)
Switzerland
Germany
366.77 (9.07%)
143.30 (6.29%)
Russia
The United
Kingdom
349.72 (8.65%)
136.62 (6.00%)
Lithuania
Estonia
263.74 (6.50%)
99.59 (4.37%)
Sweden
Ireland
210.70 (5.21%)
93.29 (4.10%)
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Latvia’s credit ratings 2017
The Fitch
Ratings
Moody’s
Standard &
Poor’s
R&I
Rating
A-
A3
A-
BBB +
Outlook
Stable
Stable
Stable
Stable
Source: Public Finance Management
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Investment environment
in Latvia
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Infrastructure
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An extensive and functional road network, connecting both European
and CIS road networks, as well as Latvia’s ports;
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Free ports in Ventspils, Riga and Liepaja;
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The shortest route between the EU and the CIS;
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Riga International Airport as a fast-growing airport provides a
competitive international passenger hub, and a high-speed cargo
distribution centre;
Source: Investment and Development Agency of Latvia
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Skilled and motivated workforce
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The labour force in Latvia is well educated, with one of the highest rates of
university attendance in the world;
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36 institutions of higher education, 3 of which are branches of foreign
universities;
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There are more than 5700 students studying in higher education programs
for engineering, electronics and metalworking;
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Latvia’s history has prepared its workforce with knowledge of business and
cultural norms that enable partnership particularly with Russia and other
CIS partners, as well as with western European countries;
Source: Investment and Development Agency of Latvia
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Tax system in Latvia
Tax system in 2017 1
25%
20%
23.59%
23%
21%
15%
15%
10%
10.50%
12%
5%
0%
Latvia’s total tax rate of 35,9% for businesses is the lowest of
the Baltic States and the 12th lowest of the EU and EFTA
region.2
Source:
1. Ministry of Finance Republic of Latvia
2. PricewaterhouseCoopers - PwC
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Special economic zones in Latvia
Source: Investment and Development Agency of Latvia
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Transport infrastructure
in Latvia
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Key elements of transport infrastructure
Source: Ministry of Transport of Republic of Latvia
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Cargoes loaded and unloaded at Latvia’s ports
Cargoes loaded and unloaded (million t)
60
61.03
66.13
62.35
65.05
62.55
40
20
Loaded
7.79
9.06
9.12
8.13
7.09
Unloaded
0
2011
2012
2013
Cargoes loaded at Latvia's ports 2015
8% 2%
Freeport of Riga
Freeport of Ventspils
33%
57%
Port of Liepaja
Other Ports
Source: Central Statistical Bureau of Latvia
2014
2015
Cargoes unloaded at Latvia's ports 2015
13%
25%
Freeport of Riga
4%
Freeport of Ventspils
Port of Liepaja
58%
Other Ports
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Latvian railway infrastructure
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Total length of lines – 1859 km
Total length of 1520 mm gauge lines – 1826 km
Length of electrified lines – 248 km
152 stations
Source: Latvijas dzelzceļš (Latvian Railways)
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Rail freight transportation in the Baltic States
(million t)
59.4
49.2
70
60.6
55.8
57.0
55.6
60
48.7
50
52.3
49.4
48.0
40
49.0
48.0
30
29.6
20
30.5
26.1
24.4
10
2010
Latvia
19.2
0
15.4
2011
2012
Lithuania
Estonia
2013
2014
2015
Estonia
Source: Latvijas dzelzceļš (Latvian Railways)
Lithuania
Latvia
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Rail Baltica –
Railway line from Tallinn to Berlin
Source: Ministry of Transport of Republic of Latvia
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Contact information:
Embassy of the Republic of Latvia
Hradešínská 3 , 101 00 Praha 10
T. + 420 255 700 881
[email protected]
Detailed information online:
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Ministry of Economics www.em.gov.lv
Ministry of Finance www.fm.gov.lv
Bank of Latvia www.bank.lv
Investment and Development Agency of Latvia www.liaa.gov.lv
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