Latvia, the Fastest Growing Economy in the Baltic Region

Latvia-Has-the-Fastest-Growing-Economy-in-the-Baltic-RegionAll 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.

Studies show 2.1% increase in the Latvian economy

A recent Eurostat survey pointed out that among Lithuania, Estonia and Latvia, the latter country’s economy has registered the fastest and the highest growth in the first quarter of this year compared to last year. The Latvian economy grew by 2.1% compared to the same quarter of 2014, while Estonia and Lithuania registered a 1.8%, respectively 1.5% annual increase in the Gross Domestic Product. At European level, Latvia came on the second position after Romania.

Another study released by Danske Bank, referring to the development of the Latvian economy in the 2015-2016 period, shows that domestic demand will lead to economic growth. The trade volumes are also expected to grow in 2015-2016 as Latvian exports have already started to grow. Among the sectors worth investing in at the moment are the Latvian manufacturing and transport ones. Latvian companies manufacturing computer, electronic and optical devices have also proven to be successful in this year’s first months.

Latvian companies expand their business to new foreign markets

Recent data released by the Central Statistical Bureau has shown the Latvian goods external trade turnover registered a 2.3% growth in April. Among the markets Latvian companies have conquered with were the Chinese and the Russian ones, despite the difficult situation in Russia. China has shown great interest in strengthening its trade relation with Latvia especially in the agricultural sector. Chinese officials declared Latvian agricultural companies supply natural, ecological and quality products which are now in great demand all over the world.

Most investors now turn their attention towards the services sector, which is also expected to register an approximately 2% increase this year.

The annual inflation rate also rose by 1.2% in May, showing greater demand in the local markets. For information about new investment possibilities and incentives for foreign investment, you may contact our lawyers in Latvia.