News

Foreign investors appreciate Latvia’s progress in restoring economic growth and emphasize importance of euro adoption
Today, on May 20, the annual meeting between the government and the Foreign Investors Council in Latvia (FICIL) was held. During the meeting, the foreign investors recognized the government’s progress in stabilizing the economy and implementing structural reforms, as well as called for sustaining economic growth.

FICIL New Board
On October 7, the International Monetary Fund (IMF) has improved Latvia’s gross domestic product (GDP) forecast for 2010 and 2011, according to the latest IMF World Economic Outlook.

IMF Improves Latvia’s GDP Forecast
On October 7, the International Monetary Fund (IMF) has improved Latvia’s gross domestic product (GDP) forecast for 2010 and 2011, according to the latest IMF World Economic Outlook.

Industry Continued to Grow Rapidly, a Slower Rate Expected in the Next Months
On October 4, the Central Statistical Bureau reported that the manufacturing industry output in August grew 2.6% month-on-month, and year-on-year the growth has reached 20.4%. The increase was primarily attributed to the rise in the output of metal, chemical, non-metallic mineral, as well as wood pulp and wood product industries. The volume of new orders in July increased 67.0% year-on-year (41.9% domestically, 74.8% in exports), but remained practically unchanged month-on-month according to the seasonally adjusted data.

An Annual Retail Turnover Increase for the First Time since 2008
On September 30, the Central Statistical Bureau reported that retail turnover in August, by seasonally adjusted data, grew 1.0% month-on-month, which was a 4.6% increase year-on-year. The greatest annual increase was registered in the sales of textile products, household electrical goods as well as retail by post and used goods. The greatest drop in turnover was observed for the sales of audio and video recordings, cosmetics and toiletries as well as for retail in food shops. Including automobile sales in retail, the annual increase has reached 8.4% and monthly increase 1.8%.

Rapid Contraction of Wage-Productivity Gap Allows Industrial Growth
On September 14, the Central Statistical Bureau reported that the drop in per-hour labour costs in the second quarter was similar to the one in the first quarter, i.e. 9.6%. As before, labour costs have dropped a little more rapidly than wages: as the wave of layoffs died down, the amount of compensations shrunk; moreover, vacation pay, sick pay as well as the voluntary social security payments by employers also dropped faster than wages.

Exports Still on the Rise
On September 9, the Central Statistical Bureau released data showing that in July of 2010 the value of Latvian foreign trade transactions increased, as both imports and exports grew (respectively by 29.4% and 41.9% over the year).

Latvia's Outlook Raised to `Stable' by Fitch on Budget, Improving Economy
Latvia’s credit rating outlook was raised to “stable” by Fitch Ratings after the government controlled a spiraling budget deficit and stabilized the economy following the European Union’s deepest recession.

Government Takes Action to Attract Large Foreign Investments
Prime Minister Valdis Dombrovskis’ special foreign investment-generating council met for the first time on August 25. The Coordination Council for Large and Strategically Important Investment Projects was chaired by the Prime Minister and given a briefing by the Latvian Investment and Development Agency (LIAA) on the current investment situation in Latvia. “In its struggle for investment attraction Latvia is not in the field of equal opportunities and fair competition. The regions and countries are competing rather than the commercial enterprises,” emphasized LIAA Deputy Director Māris Ēlerts.

Action Plan of Combating Shadow Economy Approved
On August 10, the government approved the Action Plan of Combating Shadow Economy which is prepared by the Finance Ministry and based on suggestions developed by line ministries and the non-governmental sector in order to fight against shadow economy and to improve fair competition.

Retail Turnover Indicators Stabilize as the Future Evaluation of Households Improve
On July 30, the Central Statistics Bureau revealed that the seasonally adjusted retail turnover did not change in June 2010 month-on-month. At the points of sale of retail food, the retail turnover has decreased by 0.7% while at non-food retail points of sale it has increased by 0.4%.

Bank of Latvia Lowers Deflation Forecast for 2010
On July 15, the Bank of Latvia has lowered the deflation forecast for 2010 and expects average deflation at 1.6% this year, Governor or the Bank of Latva Ilmārs Rimšēvics, told at the press conference. He said that the annual deflation that began in October 2009 continued due to domestic demand still remaining weak.

Current Account Positive, Overall Balance of Exports and Imports Posts a Small Surplus
In May 2010, the current account surplus reached LVL 82.1 million (EUR 116.8 mln), with exports exceeding imports by LVL 5.3 million (EUR 7.54 mln). Exports of services exceeded their imports while exports of goods were lower than imports; nevertheless, the overall balance was positive.

Riga welcomes 80 Latvia's Honorary Consuls from 49 countries
On July 8-9, the Ministry of Foreign Affairs will host the fifth meeting of the Honorary Consuls of Latvia, with the aim of discussing the economic situation and the growth strategy of Latvia, the new tourism strategy of Latvia, the matters of the country's image, and the topicalities of consular work. The meeting at the Foreign Ministry will bring together 80 of Latvia's Honorary Consuls from 49 countries around the world.

Money in Circulation Stabilized, Drop in Lending Abating
Money in Circulation Stabilized, Drop in Lending Abating

Shadow Economy Reduction Plan Offers to Facilitate Formal Economy
Shadow Economy Reduction Plan Offers to Facilitate Formal Economy

Foreign Investors: Levelling the playing field will contribute to the formation of a competitive, stable and predictable business environment.
Today, on May 28, a high-level meeting of the Government of Latvia and the Foreign Investors Council in Latvia (FICL) took place in Riga. Foreign investors acknowledged the Latvian government's efforts in stabilizing the macroeconomic situation, strengthening the financial sector, and implementing structural reforms. FICIL expressed the necessity to make use of the current global economic recovery which is favourable for performing essential internal changes and therefore ensuring the further development of Latvia.

Beneficial Development Requires Purposeful Cooperation
At the members meeting held on May 18, 2010, Foreign Investors Council in Latvia (FICIL) invited its members to join the Statement of Good Corporate Citizenship. Good Corporate Citizenship is a business practice that demonstrates companies’ values and principles, including voluntary social, environmental and human rights initiatives in their daily activities. The purpose of this Statement is to promote mutually beneficial relations between companies and their stakeholders - employees, customers, partners and society as a whole. Companies that join this initiative undertake to include corporate social responsibility in their business strategy, as well as to promote fair and transparent business environment in Latvia.

Foreign Investors Council in Latvia adopts the statement of Good Corporate Citizenship
At the members meeting held on May 18, 2010, Foreign Investors Council in Latvia (FICIL) invited its members to join the Statement of Good Corporate Citizenship. Good Corporate Citizenship is a business practice that demonstrates companies’ values and principles, including voluntary social, environmental and human rights initiatives in their daily activities. The purpose of this Statement is to promote mutually beneficial relations between companies and their stakeholders - employees, customers, partners and society as a whole. Companies that join this initiative undertake to include corporate social responsibility in their business strategy, as well as to promote fair and transparent business environment in Latvia.

The meeting of the high level officials and the Foreign Investors' Council in Latvia
On May 27 and 28 the annual meeting of the high level officials of Latvia and the Foreign Investors' Council in Latvia (FICIL) will take place, during which the foreign investors will meet with the President of Latvia Valdis Zatlers, the Prime Minister Valdis Dombrovskis and the president of Bank of Latvia Ilmārs Rimšēvičs to discuss the economic developments of Latvia – the macroeconomic situation, taxation policy, possibilities of investment attraction, improvements in spatial planning and construction, possibilities of increasing competitiveness of the university level education, as well as foreign experience in new business facilitation.

The World Bank Suggests Measures for Further Fiscal Consolidation
On April 1, the World Bank concluded its technical mission to analyse potential fiscal consolidation measures in Latvia, and the Finance Ministry has received a preliminary report with a number of proposals.

Moody’s has Raised Latvia’s Ratings Outlook
On March 31, the international credit rating agency Moody’s Investors Service raised the outlook on the Latvian government's Baa3 ratings from negative to stable. The outlook on the foreign currency deposit ceiling was also changed to stable.

FICIL New Chairman
The new Board of Foreign Investors‘ Council in Latvia (FICIL) has elected the organization's management at its first meeting. FICIL is pleased to announce that Gunnar Ljungdahl, Senior Vice-president at the Stockholm School of Economics in Riga has been appointed to the position of Chairman of the Board for the Organization. Jerry Wirth, President of the American Chamber of Commerce and Sandis Šteins, CEO of Latvija Statoil have been appointed to the positions of Vice Chairmen of the FICIL’s Board.

FICIL New Board
During its Annual General Meeting, Foreign Investors' Council in Latvia (FICIL) has elected a new Board.

Moody’s Considers Latvian Economy Stabilising
On January 21, Kenneth Orchard, a vice president and senior analyst at Moody’s Investors Service, speaking to Bloomberg said Latvia may be lifted to “stable”. Orchard said: “The economy is no longer in freefall and is stabilising. Financial stress is down significantly and the Treasury’s liquidity position is good.”

Association of Latvian Commercial Banks Forecasts 3,2% Growth in 2011
On January 18, the Association of Latvian Commercial Banks presented its annual macroeconomic outlook, prepared by banking experts. The report acknowledges that the year 2009 has been the most difficult year for Latvia’s economy. Nevertheless, despite lack of confidence at home and abroad, Latvia has laid the basis for recovery by means of the fiscal consolidation policy recommended by the international creditors.

Parex Index: the Mood of Entrepreneurs is Becoming More Stable
Results of the Q4 2009 business activity research Parex Index show that compared to Q3, the mood of businesspeople has not changed much, and there has not been any rapid reduction in the index. This suggests that the economic situation in Latvia is becoming more stable.

Latvia – Leader of Baltics on the EU Fund Acquisition
On January 19, the Ministry of Finance published information that data by the European Commission on payments to financial beneficiaries of the EU Funds shows that during the final months of 2009 Latvia has overtaken other Baltic States in acquisition of available financing reaching 15% from the available amount allocated for 2007 – 2013.

Latvia to Become Main Transit State for Shipping NATO Non-military Cargos to Afghanistan
On January 19, the Latvian government agreed in the next weeks to sign agreements with two logistics companies that will deliver NATO's non-military cargos to Afghanistan. Latvian Defence Minister Imants Lieģis said: “Latvia thus assumes the key role in ensuring the transit of non-military NATO cargos to Afghanistan”.

Facilitation of Green Energy Usage Discussed at the Forum
On January 18, Ministry of Economics and Riga Technical University organised the first Green Energy Forum on facilitation of green energy usage in national economy.

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