Honourable Mr Rostovskis, honourable Mr Endziņš, dear members of the Latvia Chamber of Commerce and Industry,
Welcome to the annual general meeting of the Chamber!
In February, when I was approached about the general meeting appearance, which I appreciate, the world seemed an entirely different place.
We were still preoccupied with consequences of Covid-19 pandemic, and a bit brighter, albeit still cautious, outlook on the future had begun to form. We had finished the year with a rather healthy growth of 4.7% and fastest export growth in the past decade of 24 %.
An extensive corporate and private assistance package was put in place to help manage the energy price spike. We have allocated the total of 450 million euro, or 1.3% of GDP, which is one of the highest indicators in the European Union in terms of energy assistance. Our focus was on opening of the economy and better sustainability, growth and living standards for our people.
As it turned out, the pandemic was not the only shock we had cope with.
As we woke up on 24 February, we found ourselves in an entirely new reality. Putin’s invasion of Ukraine, right here on our doorstep, in Europe, will mark a month since its beginning tomorrow. War in Ukraine has created a new and highly complex geopolitical landscape, a new set of factors affecting our security, foreign policy, financial sectors, economies and many other areas.
Our worst fears have come true despite our best warnings to our Western allies over the years.
Unity and strong reaction of Europe and its international partners to Putin’s brutal aggression, with unprecedented sanctions against aggressor and his supporters, will have impact we really cannot project yet. These sanctions will come at a high price for Latvia. However, contrary to Ukraine, which is paying in its people’s blood, we will most likely suffer only financial losses.
I am happy and proud about the unity of our country and people in support of Ukraine and everyone’s readiness to offer all kinds of assistance, from military to humanitarian.
I want to thank all companies that joined Chamber’s charity campaign and donated humanitarian and medical products. I urge all members of the Chamber to think about additional ways for helping Ukraine, which has been under attack for already a month. I also appeal to every Latvian: let us support Ukrainian producers and choose their products sold in Latvia.
These new geopolitical and economic circumstances require us to be united, smart and as far-sighted as possible when it comes to our response. We must do our homework properly to ready ourselves for changes that will affect our economy. Our safety and strength depend on our resilience and adaptability to rapid changes.
I believe we must conduct a fair audit of what we should have done and shift the focus to our key vulnerabilities, such as our strategic dependence. There is no time for hesitation, they must be eliminated now. Energy independence and security through greater investments into renewables is one of such pressing needs.
Business environment is still waiting for numerous improvements that will retain the confidence of local and foreign investors.
Going forward, I believe, we must continue investing in our future, i.e., areas important for growth and development, especially knowledge-based, as well as skills, research, innovations and relevant infrastructure.
We must continue to focus on new market opportunities, lock in on new supply and export markets. That is how our economy will grow.
Let us not forget that Russian market is now closed for us. But, if you are a ‘high-roller’, you must be ready to bear the consequences, government will nor bail you out.
We must be vigilant and decisive when it comes to moving out strategic projects forward. That is how we can solidify our positions in global value chains.
This new situation has also showed how important information that we consume is. Our investment plans must be geared towards a media landscape where truthful, meaningful, inclusive content is ‘king’. Content that also speaks to those who are currently left on the side.
I am grateful to the leadership of the Latvian Chamber of Commerce and Industry – the managing and executive board – and all staff members for the business support you are providing.
I hope that healthy development of your organisations will receive equal attention to the overall development of Latvian economy during today’s discussions. I wish everyone a very productive day!