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Sunday, 11.05.2025, 05:00
Foreign investments in Latvia increasing, yet Latvia still behind Estonia and Lithuania
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Economy Minister Daniels Pavluts informed that the amount of direct foreign investment started to increase in 2010 and that investments are returning to Latvia, compensating for the outflow of investments. Last year's results are already highly positive. In the first nine months of 2011, accrued direct foreign investment in Latvia totaled LVL 6.56 billion, a threefold increase on 2010. In January-September 2011, the total amount of accrued investment was 14.1% higher than at the end of 2010, writes LETA.
The amount of investment in manufacturing industry is also increasing, and currently constitutes 12.3% of the total amount of accrued foreign investment. This indicator, however, must still be improved, since the sector's share in Latvia's added value is 14.2%, whilst the amount of investment is proportionally smaller, explained Pavluts.
"It is necessary to try to channel direct foreign investment more into manufacturing industry. At the moment, accrued foreign investment in such sectors as financial services, real estate and trade still exceeds the amount of investments in manufacturing industry. We must also strive to achieve growth in this sector, since it is important for Latvia's economic stability and sustainability," emphasized Pavluts.
The total amount of investments has increased as well. In January-September 2011, the total amount of foreign investments was 25% higher than in 2010, informed the minister.
"It would be wrong to compare 2010, the year of crisis, with 2011, and there is no reason to take pride in a percentage-wide increase in the amount of investments. I would rather compare all three Baltic states, since they are rivals in the struggle for investors. Latvia is currently losing the fight," emphasized financial consulting company "Laika stars" board chairman Vadims Jerosenko.
Pavluts agreed that Estonia has attracted more investments than Latvia, which is yet another reason why Latvia should be moving toward the eurozone and implementing its current policy.
Foreign Investors' Council Executive Director Girts Greiskalns added that the government is trying to improve Latvia's investment environment as can be seen in the latest World Bank Doing Business Index and the Global Competitiveness Index.
However, there are certain areas where improvements are needed, and they are currently being implemented, said Greiskalns.
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