Latvia is an EU member country that experienced superior GDP growth rates prior to the financial crisis in 2008. It underwent significant privatization, which resulted in large foreign direct investment inflows. Its economy was ranked first among developing countries until 2008.
Latvia’s Main Industries
Latvia is economically known for its strength in:
- Pharmaceuticals and Chemicals Sector
- Phytopharmaceuticals
- Paints and varnishes
- Chemical compounds
- Synthetic fibres
- Cosmetics and perfume
- Plastic and rubber products
- Biotechnology Sector
- Industrial and Manufacturing Sector
- Electronics Manufacturing and Engineering
- Electrical Engineering
- Textile and Clothing Sector
- Cotton
- Wool
- Garments and accessories
- Linen
- Synthetic fibre
- Agriculture Sector
- Fruits and Vegetables
- Bread and Grain
- Fish
- Dairy
- Meat
- Beverages
- Forestry Sector
- Timber
- Wood
- Pulp
- Paper
- Fibreboard
Latvia’s Main Stock Exchanges
The main stock exchange in Latvia is:
A) Riga Stock Exchange (currently NASDAQ OMX Riga)
- Founded in 1993 as the Riga Stock Exchange
- Is a self-regulating organization, owned by the NASDAQ OMX
- Utilizes the highly advanced trading technology (INET)
- Serves trading in equities, fixed income, derivatives, and depository receipts
- Currently has 30 members on the exchange
- Indices
B) OMXR/RIGSE Index
Latvia’s Economic and Investment Performance
After superior growth, Latvia’s economy suffered a severe contraction mainly due to a credit-induced high consumption and bubble. Prior to that, it was a hub for foreign investment and capital, after privatisation led to its economy opening up.
After ranking first among developing countries, it suffered a significant economic contraction. Nevertheless, sound economic and investment policies enabled it to stabilize in 2010 and it remains a promising country with strong potential.
Latvia’s 10 Most Profitable Companies in 2010
| Rank | Company | Symbol : Ticker | Profit ($millions) | Revenue ($millions) |
| 1 | Latvijas Gaze | GZE1R-RG | 668.29 | 48.78 |
| 2 | Grindeks | GRD1R-RG | 123.22 | 13.45 |
| 3 | Latvijas Balzams | BAL1R-RG | 98.84 | 7.42 |
| 4 | Olaines Kimiski-Far | OLF1R-RG | 47.81 | 6.69 |
| 5 | LATVIJAS TILTI AS | LTT1R-RG | 42.45 | 3.77 |
| 6 | SAF Tehnnika | SAF1R-RG | 18.03 | 2.57 |
| 7 | Valmieras Stikla Skiedra | VSS1R-RG | 74.08 | 1.17 |
| 8 | Ditton Pievadkelu AS | DPK1R-RG | 14.6 | 0.72 |
| 9 | BRIVAIS VILNIS AS | BRV1R-RG | 13.49 | 0.66 |
| 10 | LIEPAJAS AUTOBUSU PARKS AS | LAP1R-RG | 10.15 | 0.45 |
Ways to Invest in Latvia
There are a couple of different ways to invest in Latvian companies:
- Through a Latvian Bank
- Aizkraukles Banka
- Danske Bank
- Nordea Bank
- DnB NORD Banka
- SEB Banka
- Swedbank
- ETFs
- ESR:NYSEArce – has exposure to various Eastern European countries including Latvia
Falling Knife
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