Economic indicators
The long-term priority “Development of entrepreneurship” of the Sustainable Development Strategy of Daugavpils local government and Augšdaugava municipality until 2030 covers the possibilities of the Daugavpils to promote business development and cooperation both between entrepreneurs and the municipality. The development of the tourism environment and wider cooperation in this field play an important role.
Daugavpils' potential in the fields of business and education, multinational society and geographical location, as well as its special role in promoting East-West cooperation is a precondition for the growth of Daugavpils as a multicultural, multiethnic and multifunctional city, cross-border economic development and service center. The significance of Daugavpils goes beyond the borders of the region and the country, giving Daugavpils the role of a crossroads of transit directions of international significance. (Sustainable Development Strategy of Latvia until 2030)
Dimension “Economic growth and accessibility” of the CITY VISION 2030
The territory is the propulsion of the Latgale region, industrial, job, trade, educational and science, health, tourism, sports, cultural and art center. Daugavpils is a driving force for the economic development of the Eastern Baltic, promoting the economic growth of the region together with Augšdaugava municipality, which is an important functional area of the city and a strong rural area.
The area in the future is characterized by an integrated cooperation area with modern industrial, logistics and scientific areas, secure border, competitive economy, developed education, culture and sports life, qualitative living environment both in the city and in the countryside, attractive natural and cultural recreation, business greening and digitalization.
Citizens have unrestricted access to various modes of transport, of which public transport plays an important role. Alternatives for sustainable mobility have been gradually developed - pedestrian traffic, cycling and electromobility, for which appropriate infrastructure is being developed. The area has developed environmentally friendly and integrated mobility, which is easily and quickly accessible at the regional and international level.
Daugavpils is an important business logistics and tourism center in Eastern Europe, with a high level of mobility at the regional, national and transnational levels.
THE MAIN ADVANTAGES OF DAUGAVPILS City GOVERNMENT
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Daugavpils is the second largest city in Latvia and an important economic centre in the Latgale region. The advantageous geographical location of Daugavpils is still one of the most important factors for the city's development. The city is intersected by five railway lines and many national and TEN-T (European transport network) roads. All this allows the city to develop into an important cross-border region – an industrial, educational, cultural, tourist, commercial centre and transport hub. |
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BUSINESS TRENDS IN DAUGAVPILIS
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In 2023, there were 4,025 economically active enterprises in Daugavpils. By sector, the largest number of enterprises was in the trade and motor vehicle repair sector – 33%, the number of enterprises decreased by 47 enterprises or by 2% compared to the previous year. The transport and storage sector accounted for 11% of all enterprises registered in Daugavpils. 9% of economically active enterprises were operating in the manufacturing industry. Professional, scientific and technical services accounted for 8% of the city's active enterprises, while construction accounted for 7% of enterprises registered in Daugavpils. |
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In 2023, approximately 357 enterprises or 9.0% of economically active enterprises in Daugavpils were manufacturing enterprises. The most important business sectors in the manufacturing industry by the number of industrial enterprises in 2023 in Daugavpils are:
The companies in these sectors mostly export their products abroad. The largest commercial companies in Daugavpils export their products to more than 40 countries. |
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The most important manufacturing industry of the Daugavpils City Government is the manufacturing of fabricated metal products and mechanical engineering, where in 2023 the city's largest companies have produced around 31.9% of the total output of the largest manufacturing companies of Daugavpils, which amounted to around EUR 451.3 million in the year under review. In 2023, the manufacturing industry continued to be affected by weak external demand and geopolitical uncertainty, as a result of which, compared to the previous year, the total net turnover of the largest metalworking and mechanical engineering companies decreased by 4.7%. In this situation, companies continued to look for new supply opportunities and market outlets. One of the rapidly growing industries in the city in the last two years (compared to 2021, the production volume has increased more than twice) is the computer, electronic and optical equipment industry, the production volume increased by 6.1%. The food and beverage production sector also achieved positive results in the year under review, the production volume increased by 3.9%. In turn, compared to the results of the previous year, there was a decrease in the production volume in the production of ready-mixed concrete by 0.4%, in the sector of textile and garment manufacturing by 0.3%. In the year under review, the biggest drop in turnover by 5.0% was observed in the sector of chemicals and chemical products manufacturing. |
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Daugavpils industrial zones
There is a large enough number of industrial zones, manufacturing areas and unused buildings in Daugavpils that can be offered to potential investors. For the promotion and development of entrepreneurship there are several industrial zones in Daugavpils, which can be used for the location of new manufacturing companies.
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In 2023, projects for the renovation of the infrastructure of production areas were completed in order to improve the infrastructure of industrial areas in the city and to create new jobs in the future in these areas. Within the framework of the project "Promotion of Regeneration and Improvement of Accessibility of the Industrial Area of Cietokšņa Warehouse Zone", the facility "Reconstruction of Motoru Street from Bērzu Street (05000350201) to Vaļņu Street with Reconstruction of Motoru Street Industrial Area, in Daugavpils" was put into operation. The asphalt pavement of Motoru Street and the entire territory of the industrial area was replaced, as well as utilities installation works – lighting reconstruction/construction, heat supply network reconstruction, external water supply and external municipal sewerage construction, electricity supply network construction – were carried out. The project has contributed to the development of the industrial area of the Cietokšņa warehouse zone of the State city of Daugavpils and provided a favourable environment for business development.
Since 2014, the Daugavpils city government grant programme "Impulss" has been implemented to support young entrepreneurs. In total, out of 287 projects submitted, 100 companies working in various manufacturing and service sectors – mainly tourism, health, cleaning, repair and entertainment services, electronics, IT services, etc. – have been supported. The total amount of the municipal grant is around EUR 565,000. A variety of new products and services have emerged in Daugavpils.
The Latgale Special Economic Zone (LSEZ) is operating in the territory of the Daugavpils City Government, including an area of 2,500 ha of production areas, where the city's manufacturing companies can qualify for support in the form of direct tax incentives. In 2023, there were already 15 (fifteen) capital companies operating in the LSEZ, which carry out their commercial activities in the State city of Daugavpils.
