Latvia
Background:
The name "Latvia" originates from the ancient Latgalians, one of four eastern Baltic tribes that formed the ethnic core of the Latvian people (ca. 8th-12th centuries A.D.). The region subsequently came under the control of Germans, Poles, Swedes, and finally, Russians. A Latvian republic emerged following World War I, but it was annexed by the USSR in 1940 - an action never recognized by the US and many other countries. Latvia reestablished its independence in 1991 following the breakup of the Soviet Union. Although the last Russian troops left in 1994, the status of the Russian minority (some 30% of the population) remains of concern to Moscow. Latvia joined both NATO and the EU in the spring of 2004.
Franchise Association:
Tatjana Melehova
Baltic Franchise Foundation
Director Baltic Franchise Foundation
Elizabetes Str. 45/47
Riga, LV-1010, Latvia
phone (371) 67334346 fax (371) 67334350
e-mail:
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
http://www.franchising.lv
Geography:
Area: 64,589 sq. km. (24,938 sq. mi.); slightly larger than West Virginia.
Cities (2008): Capital--Riga (717,371). Other cities--Daugavpils (105,958); Liepaja (85,050); Jelgava (65,635); Jurmala (55,580); Ventspils (43,299); Rezekne (35,883).
People:
Nationality: Noun and adjective--Latvian(s).
Population (2008): 2,270,894.
Annual growth rate (2007): -0.5%. Birth rate--10,2/1,000. Death rate--14,5/1,000. Migration rate--3541 immigrants, 4183 emigrants (2007). Net migration rate (2007): -642 migrants.
Density (2008): 35.2/1 sq. km (this figure is far lower in the rural parts of Latvia). Urban dwellers—67,9%.
Major ethnic groups (2008): Latvians 59,2%, Russians 28.0%, Belarusians 3.7%, Ukrainians 2.5%, Poles 2.4%.
Religions (2003): Lutheran (23.8%), Roman Catholic (18.4%), Russian Orthodox (15.0%).
State language: Latvian (Lettish). Russian also is spoken by most people.
Education: Years compulsory--9. By 1989, 60% of the adult populace had finished high school, and 12% had completed college. Enrollment (2007/2008)--382,073 students in 1,648 schools (including pre-school establishments and vocational education institutions) and 127,760 university students. Literacy--99.8%.
Health: Infant mortality rate--8.7/1,000 (2007). Life expectancy (2007)--65.8 yrs. male, 76.5 yrs. female.
Work force (2007) (1,075 Mio. people): Industry--17.2%; trade--16,5%; construction--11.2%; agriculture/forestry--9.6%;; transport/communications--9.3%; public administration/defense--7.5%; education--7.3%; real estate industry--6,6%; health care/social welfare--4.5%.
Economy:
GDP (2007): $17.09 billion.
Annual growth rate (2007): 10.3%.
Annual inflation rate (2007): 14.1%.
Unemployment rate (2007): 6.0%.
Per capita Income (Nominal GDP per capita) (2007): $12,000.
Natural resources: Peat, limestone, dolomite, gypsum, timber.
Agriculture/forestry (3.2% of 2007 GDP): Products--cattle, dairy foods, cereals, potatoes, timber. Land--2.36 million hectares, of which 73.3% is arable, 25.7% meadow and pasture, and 1.0% orchards.
Industry (13.6% of 2007 GDP): Metalworking, machinery and tools, light electrical equipment and fittings, textiles and footwear, technological instruments, construction materials, processed foods.
Major sectors of the economy (2007): retail and wholesale trade, repair of motor vehicles, motorcycles and personal and household goods 20.3%; real estate, renting and business activities 15.8%; manufacturing 10.8%; transport and communications 10.8%; construction 8.4%; financial intermediation 7.7%; public administration and defense, compulsory social security 6.7%
Trade (2007): Exports--$7.92 billion: wood, wood products 22.5%; basic metals, fabricated metal products 14.6%, machinery, equipment 11%; food products, beverages (incl. alcoholic), tobacco 7.8%; chemicals, chemical products 7.4%; textiles and textile products 6.7%. Major markets--Lithuania 15.8%, Estonia 14.4%, Russia 9.6%, Germany 8.7%, Sweden 7.7%, U.K. 6.9%. Imports--$15.26 billion: machinery and equipment 20.8%; motor vehicles 14.6%; mineral products 11.5%; basic metals and fabricated metal products 9.6%; chemicals and chemical products 8.1%; food products, beverages (incl. alcoholic), tobacco 6.1%; rubber and plastic products 4.8%; textiles and textile products 4.3% Partners--Germany 15.2%, Lithuania 13.9%, Russia 8.4%, Estonia 8.1%, Poland 7%, Finland 5.1%, Sweden 4.9%.
Latvia's economy experienced GDP growth of more than 10% per year during 2006-07; but entered a recession as a result of unsustainable current account deficit and large debt exposure amid the softening world economy. The IMF, EU, and other donors provided assistance to Latvia as part of a package to defend the currency's peg to the euro and reduce public spending by about 5% of GDP. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999. EU membership, a top foreign policy goal, came in May 2004. The current account deficit and inflation remain major concerns.
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NewsThe worldwide chain of McDonald's fast food restaurants plans to invest around US $1 bn into developing its franchises in Europe next year, the Reuters newswire reported. At the same time, they will pay greater attention to developing countries. "The potential for growth in Central and Eastern Europe is huge. We have only opened 350 restaurants in Ukraine, Poland and Romania, which have a combined population of more than 100 million and flourishing economies", says Executive Director Ralf Alvarez. There are 63 McDonald's restaurants in Ukraine in 19 cities. The total amount of investments since they began operating in Ukraine (since 1997) exceeded US $100 mn. McDonald's Ukraine has around 5,000 employees across the country. Reuters Sep 2008
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