In Latvia the productivity growth dynamic is higher than the average in the European Union. However, productivity itself is at 60% of EU’s average, as reported by University of Latvia Scientific Institute of Productivity LV PEAK director Inna Šteinbuka.
Assuming the productivity level of 2010 was 100. In 2020 Latvia’s productivity level was 125.8, in 2021 it was 134.4 and in 2022 it was 134.1. The average productivity index in the EU was 102.4 in 2020, 106.3 in 2021 and 108.3 in 2022. Šteinbuka admits the dynamic in Latvia is more rapid than in the EU. However, the overall productivity level is still at 59.8% of EU’s average.
The productivity in various Latvian sectors is significantly behind the average in the EU. For example, in the processing industry productivity is at 46% of EU’s average, whereas
in Information and communications technology sector productivity is at 43% of EU’s average.
Šteinbuka said that in Latvia’s processing industry the low-technologies sectors are in a dominant position, whereas in high technologies the proportion of employed people is only 4% of the total number of people employed in the processing industry. The average in the EU is at 7% and in Estonia it is 9%. At the same time, she admits productivity is relatively good in Latvia’s agricultural sector, where it is 84% of EU’s average.
When it comes to innovations, Latvia is behind Lithuania and Estonia on nearly all levels, stresses Šteinbuka. Expenses on research and development in Latvia are at 14% of EU’s average. Latvia is third from the end in EU, ahead of only Bulgaria and Romania in this regard. Šteinbuka added that even Latvia’s digital development level is below the average in the EU. Additionally, only a small number of adults are engaged in life-long education.
Investments performed in Latvia in 2022 remain lower than the amounts observed in 2007 prior to the financial crisis, said Šteinbuka.
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