User:Cattbrown86/sandbox/Riga

Economy

Bank of Latvia headquarters in Riga

Following the economic downturn in 2008, Latvia has bounced back to be one of Europe’s ten fastest growing economies. As Latvia's capital, Riga is one of the key economic and financial centers of the Baltic States containing roughly half of all the jobs in the country and generating more than 50% of Latvia's GDP and exports.[54] According to the Central Statistics Bureau, 87% of the country’s share capital and 58% of its companies are found in Riga. Inc. magazine compiles an annual list of the “fastest-growing private companies in Europe” and named Riga as home to 71 of these companies as of 2017. After Latvia reclaimed its independence from the USSR, the prominence of the industrial sector in Riga was supplanted by the service, transport and construction sectors. The service sector accounts for 45% of Riga’s enterprise, followed by trade at 21%, construction at 7% and manufacturing at 6%. The most growth has been seen in the educational sector, with additional strong growth in finance, insurance, energy and construction.

Transport and Tourism

Riga Port container terminal

Riga’s geographical position in relation to Russia and the EU make it an ideal trade, transportation and storage hub. Riga's port is one of the largest in the Baltic. It handled a record 34 million tons of cargo in 2011 [55] and has potential for future growth with new port developments on Krievu Sala.[56] In addition to the transportation of containers, commodities passing through the Freeport of Riga include chemicals, fertilizers, metals, oil, coal and wood.

The Riga International Airport accommodates a large and growing share of cargo transportation as well as 1/3 of airline passengers coming and going from Latvia; it served 5.4 million passengers in 2016 and was named one of the top five airports in Europe for growth in July of 2017. Nearly half of all air passengers in the entire Baltic Region pass through Riga International Airport. Tourism is also a large industry in Riga and despite a slowdown during the global economic recession, it grew 22% in 2011 alone.[57] This growth has continued throughout Latvia in 2017 with an increase in international visitors, out of which 71% chose Riga as their destination.

Labor

The largest sources of employment in Riga are trade, transport and logistics and manufacturing. As reported by the State Employment Agency, unemployment in Riga has fallen from 10% in 2012 to 4% in 2017. Instead of being purely representative of growth, some of this drop may be accounted for by the large number of emigrants leaving Latvia. A shortage of labor may become an issue in Riga, as the city has lost approximately a fifth of its population. A declining fertility rate, low male life expectancy and population aging can also be expected to contribute to the labor shortage.

Shadow Economy

Of significant concern in Latvia, as well as other Baltic countries, is the presence of the shadow economy. In Latvia, this primarily takes the form of under-reported business income and "cash in an envelope", particularly in the construction sector. The Stockholm School of Economics in Riga points to the capital city as being more heavily involved in the shadow economy than most of the country.

Prostitution is legal in Latvia, with Riga rated one of the top twenty places in the world for sex tourism. However, this legal sex trade is linked to higher levels of illegal human trafficking, as well as the exploitation of those employed in the industry. While some trafficking victims are brought into the country to work in prostitution, many more Latvians are taken to be exploited for sex or labor elsewhere in Europe.