Economy
A characteristic feature of Ventspils economy is the high development level compared to that of Latvia in general. At the moment, employment indicators (lower unemployment, higher employment) and indicators on income (higher average salary) suggest that Ventspils has created a favourable environment for business development.
Gross domestic product (GDP) referring to the market value of all final goods and services produced by the public and private sector of certain territory within a year is considered the key indicator of economic growth. As of year 2008, GDPs of republic cities are no more being calculated. Consequently, one can only follow the dynamics of Ventspils GDP until 2007. Starting from 2008, Ventspils indicators are being added to those of Courland region and the Republic of Latvia.
In 2007, Ventspils nominal GDP was 327.87 million lats (7.9% increase compared to year 2006). Ventspils GDP of 2007 per capita was LVL 7,530, i.e. 16% higher than Latvia's average GDP per capita (LVL 6,493) and 51% higher than Courland region's average GDP per capita (LVL 4,979). Among cities, Ventspils recorded the second best indicator after Riga (LVL 11,163).
Other indicators of economic growth are non-financial investment and comparative index; like GDP, since 2007 they are no more being calculated in regard to each city separately. Non-financial investment in Ventspils in 2006 was 155.4 million lats; in 2007 it was 149.2 million lats (Central Statistical Bureau of Latvia (CSP), On Key Indicators of Structural Business Statistics. Latvia 2009). Ventspils non-financial investment per capita was the highest in Latvia. Non-financial investment per capita in Latvia in 2006 was LVL 1,810.1, in Riga – LVL 2,816.5, in Ventspils – LVL 3,568.8; in 2007 it was LVL 1,939.5 in Latvia, LVL 2,926.2 in Riga, and LVL 3.445.8 in Ventspils (State Regional Development Agency, Regional Development in Latvia. Latvia 2009).
In 2009, Ventspils had almost 2,000 registered business companies, of which 1,083 were economically active. Over the last few years, the economic activity of inhabitants and the number of economically active companies in Ventspils has grown. Thus, in 2004 Ventspils had only 890 economically active companies compared to 1,083 in 2009.
For a long time, there was only one dominating sector of activity in Ventspils; the situation has recently changed. Taking into account the city's specific location and its ice-free harbor, the principal sector of activity in Ventspils still is transport & storage (by value added and number of employed), however, its share during the last decade has decreased, while that of productive industry and service sector has significantly increased. At the moment, the city may be considered a multi-economy.
Value added by activity in Ventspils in 2000 and 2007,% (CSP data):
| Sectors | 2000 | 2007 |
|---|---|---|
| Agriculture; forestry;fishery | 14.4 | 1.9 |
| Extractive industry;manufacturing; electricity, gas and water supply | 3.6 | 6.7 |
| Construction | 20.8 | 16.7 |
| Trade; repair of cars, household appliances and devices | 6.6 | 10.6 |
| Hotel, restaurant and catering sector | 0.6 | 0.7 |
| Transport, storage, communication | 53.1 | 32.6 |
| Financial mediation; real estate operations | 3.7 | 14.4 |
| State administration; education; health and social care; other services | 10.2 | 16.4 |
Despite a decrease in the share of transport and communication industry, it is still the dominating sector in Ventspils, represented by such well-known companies as SIA "Ventspils naftas terminals", AS "Ventbunkers", AS "Ventamonjaks serviss", AS "Ventspils Tirdzniecibas osta", AS "Kalija parks", etc. It accounts for a high proportion of employed (22.5% of the total number of employed in Ventspils), as well as a high proportion of collected peoples income tax (hereinafter PIT) – 59% of the total PIT amount.
The second major sector in Ventspils is construction, which employs 13.5% of the total number of economically active inhabitants and accounts for 15.6% of collected PIT.
A rapidly developing sector over the last few years has been the manufacturing industry. According to information provided by CSP, the number of persons employed in manufacturing has risen from 1,500 in 2003 to 2,000 in 2009. The proportion of persons employed in productive industry is about 12% of the total number of employed. At the beginning of 2009, the manufacturing industry employed a total of 1,750 persons: 585 of them were engaged in food and beverage production, followed by 275 people in hardware production except industrial machinery and equipment manufacturing, and 226 people in furniture production.
Also the tourism industry (trade, public catering and consumer services) plays an important role in the economy of the city. It employs 14.8% of the total number of economically active inhabitants. The number of tourist accommodation places and the quality of service in the city continue to increase. In 2010, there were 52 tourist accommodation places in Ventspils with a total of 1,703 beds. New public catering enterprises are being registered in Ventspils every year. In 2010, there were 95 places (e.g. cafés, cafeterias, bistros, restaurants, etc.) rendering public catering services. Every year, Ventspils City Council presents awards to the best public catering enterprises and their employees, organizing a competition "The Best Public Catering Enterprise in Ventspils".
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