Economics, Financial Services, Latvia, Markets and Companies

Rostovskis said after the meeting that his conversation with the president focused on the Covid-19 impact on Latvia's businesses, their growth, competitiveness and exports, as well as entrepreneurs' assessment of the current situation. Rostovskis and Levits also discussed cooperation with the government, higher education reform and other issues. 

"We see Latvia's prosperity in exports and productivity. In crisis, too, all support tools and instruments should be aimed at helping businesses to reorganize or to step up and enhance their operations in foreign markets if the company is already operating there. Those who want to launch exports should be stimulated to do so," the LCCI president said.

It is equally important to help businesses adapt to changes in the global economy, Rostovskis stressed. "Clearly, the crisis will bring change in digitalization and various industries, including the motor industry. Latvian enterprises should be able to reorganize their production to adapt to the next economic cycle," Rostovskis said, noting that the Latvian economy is highly reliant on export and productivity.

Describing entrepreneurs' current sentiment, Rostovskis said that, according to the LCCI business sentiment index, entrepreneurs across all sectors of the economy voiced pessimism. "Entrepreneurs are worried, for the first time in 14 or 15 years exporters' sentiment is worse than the sentiment of entrepreneurs working in the local market," Rostovskis said, reiterating that support measures should focus on the exporters. 

The LCCI president noted that the situation in business has been gradually stabilizing and the epidemiological situation looks hopeful as well, but that there is a great uncertainty about the future. In Europe, there are concerns about a second wave of the pandemic which might prove catastrophic for the economy. Latvia, therefore, must investment the borrowed money wisely, so that the investments pay off later.