Analytics, Baltic States – CIS, Investments, Latvia, Markets and Companies

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 12:27

FDI accumulated in Latvian companies' capital down to EUR 7.23 bln in 2017

BC, Riga, 26.01.2018.Print version
The total amount of foreign direct investment (FDI) accumulated in Latvian companies’ capital decreased by EUR 56.14 million in 2017 to EUR 7.23 billion, information from Lursoft business database shows, cites LETA.

“After aggregate FDI reached its all-time high in 2015, the last two years have been marked by a downward trend,” Lursoft representatives said, adding that FDI dropped by 3.2% in 2016 and by another 0.8% last year.


A total of 10,333 transactions involving FDI were registered in Latvia last year as entrepreneurs were making investments in Latvian-registered companies and withdrawing already invested money.


The biggest increase in FDI in 2017 was registered in October when the capital of Cemex cement producer was raised by EUR 80 million. The capital increase was made by the company’s sole shareholder, the Dutch-registered company Rugby Holdings B.V.


The sharpest reduction in FDI, by EUR 159.33 million, was recorded in December 2017. One of the reasons for the drop was the liquidation of GE Money Latvia Holdings, which reduced the amount of FDI accumulated in Latvia by EUR 226.79 million.


In 2017, FDI grew at the fastest rate in the real estate sector where FDI rose by EUR 110.1 million last year. FDI in companies making nonmetallic mineral products grew by EUR 56.98 million.

FDI grew by EUR 45.12 million in warehousing and logistics and by EUR 28.64 million in land and pipeline transportation enterprises. FDI in the construction sector rose by EUR 26.46 million in 2017.


Like in previous years, Russia was the main supplier of FDI to Latvia with 1,002 investments made last year. Lithuania followed with 455 investments, Estonia with 431, Ukraine with 331 and Belarus with 224 investments.


While Russian entrepreneurs made the highest number of investments, the largest amount of FDI came from the Netherlands as Dutch entrepreneurs provided EUR 217.66 million in FDI to Latvian businesses in 2017.

 






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