Last year, turnover of Latvian companies increased in comparison with 2014. Average losses, unfortunately, also experienced growth. The average number of employees, on the other hand, remained unchanged.
The list of the most popular business industries in Latvia remained unchanged in 2015. Trade and real estate remain in the lead. According to Lursoft’s estimates based on companies that have already submitted their annual accounts for 2015, 12% of all companies in Latvia work in retain trade (except for car and motorcycle dealers). There are also companies in Latvia that are engaged in activities related to wholesale trade and real estate operations (9% of all companies that have submitted annual accounts for 2015).
Among the TOP 5 most popular business industries in Latvia are also legal and accounting services, as well as specialist construction services (5%).
The last two years have established a positive tendency for average turnover of Latvia’s companies. Over the course of 2011 to 2013, each company’s annual turnover was higher than EUR 18,000. An increase of 5.5% was experienced in 2014, with the index exceeding EUR 19,000. This growth continued in 2015. Lursoft’s estimates suggest that each company in Latvia had turnover of EUR 21,700 in 2015, which is 13.0% more in comparison with the year before.
Looking at changes experienced by companies registered in Latvia, it is worth mentioning that annual turnover has increased 14.7% between 2011 and 2014. The average index growth was 5.7% in this particular period. It is too soon to assume growth continued last year – large companies continue submitting their annual accounts for 2015. Because of that, the situation may yet change. According to Lursoft’s latest data, companies that have submitted their annual accounts for 2015 had total turnover of EUR 35.6 billion.
Although total profits of companies in Latvia have been showing a growing tendency since 2011, average indexes do not show as much a positive tendency.
Estimates show that all companies were experiencing losses in 2011. Results did improve over the course of the next three years. The first results for 2015, unfortunately, are not as positive. Opposite to the positive opinion regarding growth, most companies worked with losses last year. Studies show that average losses per company had reached EUR 38 last year.
Although the average number of employees in Latvia’s companies remained largely unchanged in recent years and each company has on average two workers, the average index demonstrates a growing tendency.
Lursoft estimates suggest that the total number of employees in companies has grown 11.9% between 2011 and 2014. Data for companies that have submitted annual reports for 2015 shows that they had provided jobs to 576.5 thousand people last year. Because the submission process of annual accounts continues, it is possible that the final index could continue growth demonstrated by previous years.