The break-up of the Soviet Union and initial reforms brought about an economic catastrophe for Latvia, with real gross domestic product (GDP) falling by around 50% during 1990-93. Since then, the economy has begun to recover. The rate of economic growth has been consistently high in recent years, having increased from 1.1% in 1999 to 10.2% in 2005 (UK Trade & Investment). Foreign trade and prices are almost fully liberalised and most of the institutions needed for a market economy have been established.
There has been a strategic move away from trade dependency on Russia in recent years, and with the accession of Latvia to the European Union (EU) there has been a reorientation of exports towards its member countries. The UK, Germany, Lithuania and Sweden are the biggest markets for Latvian goods. Key areas for growth and investment in the next few years are timber and processing; transport infrastructure; regeneration and construction; and telecommunications.
An ageing population and high workforce emigration are two challenges for Latvia. There have also been limited allegations of corruption, principally in the oil-transit business and relating to privatisation. Latvia achieved the joint second-lowest score in the EU (equal with Slovakia, after Poland) in Transparency International’s most recent survey of corruption (Transparency International, 2005).
Latvia possesses relatively rich natural resources compared to its Baltic neighbours, including: peat, limestone, dolomite, amber, hydropower, wood and arable land.
CompaniesThere are many international companies in Latvia. The Latvian Investment and Development Agency (LIDA) can supply details on the economy and business opportunities. Other sources to try for listings of individual companies in Latvia include:
British Chamber of Commerce in Latvia;Europages;Kompass - a worldwide business directory searchable by country and product/service.back to topUnemploymentUnemployment varies significantly by region, with an especially high rate of 13% in Latgale compared to 9-10% in Riga and Vidzeme (UK Trade & Investment).
back to topLanguage requirementsThe official language of the republic is Latvian, an Indo-European language related to Lithuanian. Russian is the second language, but for some it is a first language. There is a trend towards using the native Latvian language that has resulted in recent requirements for new citizens to pass a Latvian language and history test, and for teachers to teach in Latvian. As trade and co-operation with the rest of the EU grows, there is also likely to be an emphasis on speaking some of the main languages of the EU, such as English and German. Lithuanian and Polish are also spoken.
English is used for international communication and is the main language that young people are currently learning. Latvian, Russian and English are spoken in the work place.
Language coursesThose interested in learning Latvian in Latvia can contact the Public Service Language Centre.
Learning Latvian before you leave for Latvia is another option and your local educational establishments will be able to help with information on courses. Self-study courses are also available through:
Thursday, 29 January 2009
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