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 2024, there were 4,035 economically active enterprises in Daugavpils. By sector, the largest number of enterprises was in the trade and motor vehicle repair sector – 32% of the city's economically companies. 11% of all enterprises registered in Daugavpils operated in the transport and storage sector. 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 2024, approximately 363 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 2024 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 2024 the Daugavpils State City Municipality and its capital companies continued to implement the tasks planned in the Daugavpils State City and Augšdaugava District Development Programme for 2022-2027 to achieve the set objectives, actively attracting European Union (EU) and other foreign funding. In 2024, work continued mainly on the preparation of the EU funds project documentation, as well as the implementation of the EU funds co-financed projects aimed at modernising the city's infrastructure, improving the business environment, the energy efficiency of municipal buildings, improving the public open space and developing the health care system. In 2024, ambitious construction works were launched for the ALTOP Industrial Park of national importance at Lidostas iela 4, Lociki, which will result in the creation of one of the largest modern industrial parks in Latvia focused on the development of smart technologies.
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.
In 2024, having received co-financing from the Latgale Planning Region (hereinafter - LPR) competition "Remigration Support Measure - Entrepreneurship Support", Daugavpils municipality implemented the competition of the grant programme "Impulss" for the promotion of remigration. 11 applications were received, out of which 4 business ideas were supported, planning to do business in wig, ponytail and chignon making, social care services, health care and restaurant and mobile catering services. The total amount of the grant is EUR 54,000 (including 50% LPR funding).
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 2024, there were already 17 (seventeen) capital companies operating in the LSEZ, which carry out their commercial activities in the State city of Daugavpils.
