As for the year that has just begun, it will be a time for Latvian industry to overcome the consequences of last year's global and regional setbacks. It is expected that the growth rate will be very similar to 2019, which is to say, very modest. In the timber sector market, the balance will gradually be restored, but the crisis will not end before the end of the year. News is arriving that our companies' competitors in countries with higher wage costs are starting to "give in". Unfortunately, there is a risk that insect infestations will continue in the forests of Central Europe, which would mean another flooding of the market with sawn timber. Since the beginning of 2019 was still quite successful, the overall result for 2020 in timber processing is likely to be worse than last year. The performance of food processing over the past two years has been so weak that it seems it could not get any worse, but one can never be certain. A more detailed overview of the outlook for the metal sectors in 2020 will follow in a month's time, in a commentary on the industrial data for the whole of last year. However, based on a very preliminary assessment, growth could be around 5%, more than twice the average for the manufacturing industry, but less than in 2019.
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In recent weeks, both in the Saeima and the Cabinet of Ministers, the thesis has been heard once again: “We must act this way, otherwise there will be penalties, infringement procedures, etc.” Often, such a pseudo-argument completely excludes reasonable disputes, discussions, or alternatives, forcing those responsible to make decisions hastily and not always in the interests of Latvia. Why is that?
Old habits are hardening - someone somewhere knows better, let us rely on them
Lack of sufficient capacity or laziness to defend a different point of view
A generation of cabinet officials has been created who are accustomed to accepting rather than delving into matters
This is a serious problem for Latvia for which no solution is being sought. It will probably be all right somehow...
A year of stark successes and failures in industry



