Market Access

Latvia The Comeback King and Ideal Partner

Latvia – The Comeback King and Ideal Partner 

It is an undisputed fact that the EU was very hit hard by the financial crash of 2008 and none were hit harder than the two million strong people of Latvia. That year saw the economy shrink by 21% and the country experienced the highest unemployment rate of the EU. However, no country showed greater strength and resilience to such hardship. The government implemented severe austerity measures which cut deep into public life but the results were astonishing. Seven years later, Latvia is now a member of the Eurozone and has one of the strongest growth rates in Europe and it now is setting its sights westward. 

The Latvian population is an educated one, with 85% of the population speaking at least two languages. They also have the highest further and higher education rates in Europe. This makes Latvia an ideal place for outsourcing and for Portuguese companies to build a new base in a promising country. With good labour relations and lower average wages compared to others in the EU, it is no wonder that so many companies such as STAT Oil, Cutex and Allwex have already set up new homes in the powerhouse that is Latvia. 

With the powerful Russian market right next door, Latvia makes for the perfect base to launch into the expansive market to its east. To Latvia’s north is Scandinavian territory and all the wealth and stability that comes with it. Building a new business hub here is not only great business sense to get to this promising and fast growing market but also serves as a great place to launch into the large markets that are on Latvia’s doorstep. 

Since it became a member of the EU in 2004, Latvia has worked hard to increase trade with other members and EU markets now account for 72% of its exports, with another 12% going eastward to Russia. This makes it ideal for Portuguese companies to work in and establish a foundation in Central and Eastern Europe with a strong EU ally. The EU premise of no internal borders and free trade throughout the area makes Latvia the perfect candidate for low risk international expansion.

Kerrie Morton – Market Access | Cormack Consultancy Group Latvia

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