Latvia Economic and Fiscal Outlook
DESPITE INCREASE IN COSTS COMPANIES REMAIN COMPETITIVE GLOBALLY
AND PROFITABLE
Expansion of market share globally has continued despite appreciation in the real effective exchange rate; corporate profit
margins remain healthy
Real Effective Exchange Rate (REER) deflated by Unit Labour
Cost (ULC) and export market share (2015 = 100)
Profit margins
(profit after taxes to turnover; 4-quarter moving average %)
130
125
120
115
110
105
100
95
55
Q1 2015
Q2
Q3
Q4
Source: European Commission, WTO.
24
10
10
REER deflated by ULC
LV goods export market share
in world market
10
16
14
12
10
6
4202 +6
-2
-4
8
-6
I
III
I
III
2018
2019
I
2020
III
I
2021
III
I
2022
-Total in economy
-Transport
Agriculture
Manufacturing
ICT services
Source: Central Statistical Bureau of Latvia.View entire presentation