Economic Overview & Business Opportunities – Latvia
Latvia is an Eastern European country that borders Estonia, Russia, Belarus and Lithuania. Latvia’s strategic location that connects the four major growth markets– Russia, Estonia, Lithuania and Belarus, has helped the country to gain traction as one of the investment hotbeds in the region. Once a part of the Soviet Union, Latvia is the world’s 125th largest country that is home to a population of approximately 1.9 million people.
An Overview of Latvian Economy
Despite the small country size, Latvia outpaces its peers in economic freedom score. Latvia scored 70.4 in the economic freedom score, making to the rank of 35 as the 35th freest economy in the 2019 Index. Ranked 18th among 44 countries in the Europe region, Latvia’s overall score is above the regional and world averages. Latvia is a member of the European Union (EU) and the Organisation for Economic Co-operation and Development (OECD) since 2016.
The Latvian economy depends heavily on agriculture, chemicals, logistics, and woodworking, while sectors like textiles, food processing, machinery production and green technologies are the impetus behind the country’s economic growth. In terms of investment opportunities, sectors like energy; computer; forestry, farming, and woodworking equipment; transportation (including aviation); and agricultural products are the top choices that provide vast investment opportunities.
Why Invest in Latvia
1. Pro-business policies and incentives
In order to boost investments as well as to attract more foreign investors, the Latvian government has put in place a few incentives including tax incentives, labor-related incentives, incentives for research and development, and state credit guarantees. On top of that, the openness of global trade and investment, business-friendly regulations and vibrant investment climate, are the major factors that drive rapid economic growth.
2. Strategic location
Latvia’s strategic geographical and cultural position has given it an edge as the investment hotbeds as well as a strategic location for business operations in the EU and emerging markets of eastern neighbours. Being a member of the European Union (EU), Latvia has given the foreign investors in the country free access to nearby EU markets. In other words, investors can do business freely in EU and expand their business in the EU.
3. Open and free access to major EU markets
Latvia’s external trade and customs policy are supported by the free-trade principles. As part of EU, and an active participant in the World Trade Organization, Latvia is winning the race with the benefits of free and open trade in the world’s markets. Besides, the political stability and dynamic economy in Latvia are the important factors behind the rapid economic growth.
- Latvia Company Setup
- Compliance Checks and Financial Analysis
- Professional Accounting and Bookkeeping
- Taxation Consulting