Latvia is a Baltic state in Northern Europe. It is bordered by Estonia, Lithuania, Russia, Belarus, and the Baltic Sea. Across the Baltic Sea lies the Republic of Sweden.
The government system of Latvia is a parliamentary republic; the chief of state is the president of the republic, and the head of government in the country is the prime minister.
Latvia has moved to a market-oriented economy in which the prices of goods and services are determined in a free price system. It is also a member of the European Union (EU).
Economy Today
Latvia is said to have possessed the world’s largest single market as a member state of the European Union. On the 1st January 2014, the country acceded to the Eurozone by meeting the Maastricht criteria.
In 2016 the country joined the Organization for Economic Co-operation and Development (OECD).
To solve the global financial crisis of 2008, Lativa introduced Strict fiscal discipline which proved to be productive. The government honored all international creditors’ obligations and this got the economy back on track between 2011 and 2013.
The national credit rating in the country has reached a stable A- by 2014. The unemployment rate has already decreased to a single-digit number by the summer of 2014. All banks in Latvia had to pass the stress tests by the European Central Bank later that same year. According to the World Bank report, the annual GDP growth of Latvia from 2011 to 2019 is an average of 3%.
Sectors
The Latvian economy is laid on four cornerstones which are agriculture, chemicals, logistics, and woodworking. Other prominent sectors that boost the economy include textiles, food processing, machinery production, and green technologies.
Agriculture
The fertile soil and temperate climate of Latvia are so favorable to Agriculture most especially grain production. The Latvians’ traditional trade is relevant today. Grain production makes up a third of the sector, and quality dairy products and honey lead the niche to high value-added exports.
Chemicals
The chemical industry in Latvia is built on the country’s high reliable educated human resources. Their specialization includes Pharmacy, recycling, eco-friendly chemicals, and bio cosmetics which are all manufactured in Latvia and widely exported abroad. The local university-educated experts provide innovative fundamental research and development to boost this sector (in the Institute of Organic Synthesis). Medicinal discoveries from the Latvian chemical industry.
Logistics
The geography of Latvia helps the Logistics industry to be well established and strive. The country’s ports, railway, and roads route link Europe and the rest of the West with the East. Over 25 million customers are reachable within 48 hours in the Baltic region next to Latvia. The Riga Airport in Latvia offers flights to nearly a hundred European and intercontinental destinations.
Woodwork
Woodwork also thrives in the green gold of Latvia. Since half of the country is covered by lush forests; some of the woods are cut and exported. Raw lumber and manufactured products are notably the components of Latvian exports. Designated natural reserves, state-owned forests, and long-term business strategies are said to keep the balance between the business and nature.
Information Technology
High-tech electronics, information technologies, and design also formed the new success stories of the Latvian economy.
Established and progressive infrastructure in logistics and communications makes the life of business much smoother, and easier and their products and services are more competitive. The Innovations made in Latvia are highly appreciated in the world markets.
Starting a business in Latvia
The Baltic region is one of the most looked-for goals by outside specialists. Latvia offers extraordinary help and enactment for remote speculations. The government of Latvia received a business expert attitude which makes it simpler for outside enterprisers/entrepreneurs to coordinate in the nation’s business framework throughout the year. Choosing to set up an organization in Latvia, a specialist may profit by;
- The nation getting access to Eastern markets,
- Latest or modern business strategies for setting up businesses in the country
- An uncomplicated organization in the country.
The government of Latvia has set a pace that the nation’s economy keeps on creating regardless of the monetary emergency. This is through executing various projects to draw in remote direct speculations, these programs have been improved throughout the years.
