Economics, EU – Baltic States, Industry, Latvia, Markets and Companies

Daniels Pavluts.

"At the moment, Latvia has restored its financial stability, and moderate, yet balanced, economic growth has begun. However, the moderate growth scenario envisages that we will reach the European Union's average welfare level in extremely distant future. For Latvia to develop faster and reach Europe's average level in at least 10-15 years, the country's manufacturing must be based on high productivity and export. New industrial policies are currently being discussed not only in Latvia, but also in other, developed countries. A modern industrial policy will adjust the country's support instruments, fostering balanced, sustainable and dynamic development of the Latvian economy," emphasizes Pavluts.

The industrial policy aims at achieving higher industrialization and export complexity, creating products and services of higher added value, new and better paid jobs, explains the minister.

The Economy Ministry predicts that the proportion of manufacturing industry in the total added value reached 14.2% in 2011 and will reduce to 14.1% this year. If the country's economy continues its moderate recovery, the figure could increase only to 15% by 2020, writes LETA.

Nevertheless, to approach the average level in the EU, Latvia must form a stable basis for the economy, pursue industrial development and keep in mind its services sector, which constitutes a significant proportion of the country's economy, points out Pavluts.

The industrial policy will be developed and implemented in cooperation with the Finance Ministry, the Education and Science Ministry, and the Environmental Protection and Regional Development Ministry.