Latvia Economic and Defence Update

24 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 REER deflated by 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 Q1 2015 Q2 Q3 Q4 Q1 2016 zd Q3 Q4 Q1 2017 Q2 Q3 Q4 Q1 2018 Q2 Q3 Q4 Q1 2019 Source: European Commission, WTO zo 4 2 16 14 12 10 8 16 0 REER deflated by ULC Manufacturing -Transportation -2 ICT services LV goods export market share in world market -4 Agriculture, forestry Total Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 2021 Q2 Q3 Q4 Q1 2022 Q2 Q3 -6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 Source: Central Statistical Bureau of Latvia

View entire presentation