The Latvian economy is looking well after Fitch provided an A- rating with a stable outlook. The European Commission also expects Latvia to maintain its economic stability by the end of 2015 and foresees a slight growth for 2016. You can obtain more information about the country’s current economic status from our Latvian lawyers.
Latvia’s import and export values have increased significantly in September 2015, according to the Central Statistical Bureau. The country’s overall foreign trade balance improved due to the last months’ continuing increases of export values. Several industries have kept Latvia’s economy afloat during the last few months. For information about the best industries to invest in at the moment you can ask our lawyers in Latvia.
The EY Eurozone Economic Forecast revealed Latvia as the sixth most rapidly growing economy in the Eurozone in 2015. By the end of the year Latvia is expected to reach a 2.6% economic growth. The forecast for the next four years are also promising, according to the latest report issued by the Latvian Ministry of Economy.
In its attempt to attract foreign investors, Latvia has introduced the concept of micro-enterprise which also comes with very advantageous tax conditions. The micro-enterprise can take the form of a sole proprietorship or limited liability company and benefit from special conditions that are updated every year.
Latvia has started negotiating with Qatar and the United Arab Emirates, in order to improve its economic relations with the Middle-Eastern countries and to set up the grounds for new investors. Not long ago, the Latvian Government announced new investment incentives for the Latgale region that should attract foreign enterprisers.
All three states in the Baltic region have registered economic increases in the first quarter of 2015, the Latvian economy having the highest one. Latvia also registered the second fastest growth in the European Union.
The Latvian Environmental Protection and Regional Development Ministry approved the plan for the development of the eastern Latgale Province in the country. Latvian companies will benefit from investment incentives worth approximately 52 million euros. The Environmental Protection and Regional Development Ministry also declared about 800 new jobs will be created.
The Latvian Parliament, Saemia, voted to maintain the small business tax relief and to review the eligibility criteria. The relief applies to small companies in Latvia and consists in a 9% corporate tax for the first three years from the incorporation.
According to the Central Statistical Bureau (CSB), the unemployment rate in Latvia in 2014 reached 10.8% decreasing by 1.1% compared to 2013. About 108,000 Latvian citizens aged between 15 and 74 years were unemployed compared to the 128,000 individuals with no employment in 2013.
At the end of March, Latvia signed an agreement with the European Investment Bank for the allocation of a 200 million euros loan. The funds will be directed towards co-financed projects that would have usually been funded by the European Union. This loan will provide financial assistance to Latvian enterprises.
Latvia and Georgia are two countries that have cooperated well over the last years. During his visit to Georgia, Latvian President Andris Berzins acknowledged the fact that the main purpose of his visit is strengthening the relations between the two countries. Latvia is engaged in trade activities with Georgia, but the cooperation between the two countries could be even greater. In 2013 Georgia was ranked as Latvia’s 53rd most important trade partner and Latvian exports to Georgia increased compared to last year.