Industry  

         

Introduction

About the publication

Environmental policy

Social - economic indicators
Industry
Energy
Agriculture
Services
Transport
Tourism

Nature of Latvia

In 2000, 24.6% of workers were employed in industry: mining and manufacturing industry - 16.8%, energy 1.7% and construction 6.1%. During the period since 1990, employment in the mining, manufacturing and building sectors has decreased by half. Between 1995 and 2000, the total volume of labour force employed in the mining and manufacturing sector has continued to fall, by 11.4% compared to a decrease of 0.7% in the whole economy), but employment in the energy sector has increased 1.7% and in construction by 12.3%.

Figure shows the industrial eco-efficiency of the combined mining and manufacturing sector. This figure shows a positive trend from the view-point of sustainable development, since amounts of pollution have decreased more than of industrial output (6.6%). For example, between 1997 and 1999, nitrogen oxide emissions decreased by 19.4%, sulphur dioxide by 57.7%, and carbon oxides by 1.1%. The energy consumption also decreased: by 26.3%. These decreases show that the industrial technologies have been gradually improving.

Eco-efficiency in the mining and manufacturing industries in Latvia, 1997-2000
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Besides the use of eco-efficiency to assess sustainability in the industrial sectors, comparison can be made between importance of the sector in the economy (proportion of the added value from the total GDP) and relative impact on the environment (relative contribution to the total pollution). Such a comparison can be used to generate environmental profiles for industries. If an excessive amount of energy is consumed or if excessive amount of pollution are emitted to produce certain share of GDP then attention should be paid to energy efficiency and introduction of cleaner technologies in this field. Lack of improvement of technologies in inefficient sectors will hinder national sustainable development.

Figure shows the environmental profiles (relative per GDP energy consumption and pollution emission) for industry including the energy and construction sectors. In 1999, the energy and construction sectors contributed that largest amounts of SO2 and NOx (60.6% and 55.5%, respectively). These sectors together contribute more than 80% of the emitted CO, SO2 and NOx.

Environmental profiles of industry sectors in Latvia, 1999
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The wood manufacturing subsector shows the most stable trends in growth. Although this sector is associated with intensive use of natural resources, the level of processing of wood materials has been increasing. Technologies are being upgraded in sawing and drying processes. Export of wood that has been minimally processed is to a greater and greater extent being replaced by export of plywood (especially large sheets and laminated), wood panels and furniture.

To a great extent, the economy of Latvia is largely dependent on wood export. Since 1990, the added value of the forestry subsector has grown by 272%, while the added value of the whole manufacturing sector has decreased by 54%.

The growth in the forest industry is largely due to an increase of wood harvest during this period by 263.9%. Among the entire manufacturing industry sector, unemployment has only increased in the forestry subsector, by 73.1%.

Fishing is also an important sector utilizing natural resources. The proportion of the number employed in fishing is 0.6%, and in 2000 the sector contributed 0.3% of the GDP. The total fishing catch has decreased by 21.4% since 1990, but the catch in the Baltic Sea has increased by 34.7%.

Extraction of natural resources in Latvia, 1990-1999
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Construction is one of the successful industrial sectors, showing growth since 1995 (yearly average of 9.3% between 1995 and 2000), the growth has been much more rapid than the rate of increase of the GDP. Construction has become an important sector that has helped to maintain the GDP. This sector is considered as one of the economic indicators to assess the general business climate in the country.

In 2000, the greatest growth was observed in construction of administrative buildings (87%), followed by buildings for trade (63%), education (60%), and industry (54%). Construction in infrastructure declined. These changes were associated with a need for new industrial and trade buildings, as well as State budget financing for a national investment policy and sector development programme. In 2000, the construction of dwelling buildings decreased in comparison to that in 1999.