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Latvia has been one of the major burgeoning economies of European Union since its joining in 2004. Except for the period 2008-09 its economy has experienced a rapid growth. Latvian authorities are well trenched with proactive and supportive policies to encourage and solicit more and Foreign Direct Investment into various venues and junctures of economy. Statistics and Information on overseas fund inflow indicate that owing to the favorable policy framework and implementation this Baltic state has maintained an incredible FDI Track Record. The success story of FDI in various sectors in this former soviet republic continues uninterrupted and in period ending in 2011 this nation had received € 9.37 billion as compared to € 8.18 billion in 2010 indicating a steep rise of 114.55%. If closely scanned we can easily assess that even FDI was on a rising trend in years of economic slump (except 2009) and had been consistently registering an upward trend. This success in attracting Foreign Direct Funds is basically influenced by various factors such as • Well founded and enduring monetary policy • Competitive and convenient geographical placement of country between the most lucrative trade corridors of EU and CIS markets • Improvised and well established infrastructural facilities fuelling easy transportation, communications, energy availability etc. As of Figures pertaining to 2011 the gross amount of FDI pumped into various sectors of Latvian economy totals upto €1151.7 billion starting from comparably meager amount of € 392.4 in 2004. Traditionally talking major sources of FDI in Latvia are its neighbors in Baltic sea area and other European Union countries. As per figures returned in 2011 Sweden, the Netherlands and Estonia accounted for a large share of Foreign Funds amounting to almost 37% of total money pumped into Latvia. Money from these 3 countries has concentrated into specific industries i.e. • Swedish funds were more inclined to various branches finance sector (almost 59%) while 24% went to landed properties • Funds being pumped in by 76% Dutch investors prioritized on landed properties, logistics, trading and warehousing services • 53% of Estonian money was more or less channelised into landed properties. Major share of money pumped in from Estonia is a result of transit investing by other countries in Scandinavia and other investment parties by way of their representing offices in Estonia. Overall, total inflow of funds from EU totaled upto 70% of gross FDI inflow. Other major sources of FDI were Cyprus, Norway, Germany, Russia, USA, Denmark, UK, Finland etc. Sector wise distribution of Foreign Direct Investment is spread over a large domain of business and economy and major stakeholder sectors which absorbed lions share of FDI money were landed properties amounting to 24% closely followed by finance with 23%. Statistics clearly suggest that wholesale combined with retail sectors accounted for 13% of gross FDI entry while manufacturing and secondary sectors totaled up to 12% of gross infusion of foreign funds.
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