Banking services
Banking services could represent an area of potential interest for Italian firms. The Latvian bank system is composed of 22 banks.  

In the high-technology sector, where Italian firms have achieved a good specialization level, it could be possible to create synergies with the most important sectors of the local industry, especially as regards instrumental goods and plant engineering. Actions could be developed not just in order to supply machineries, fixtures and components but also to promote investments and industrial cooperation.  

The category of instrumental goods has a significant importance in Latvia’s balance of payments, as the Country needs machineries and fixtures to renovate the industrial sector. Italian companies have not shown much interest so far, even though there could be many possibilities of investments. Attention should be paid to the possibilities offered by joint development programs of the three Baltic States, with a special focus on the funds allocated by the European Union.  

Environment
The territory of the three Baltic States is not very vast, with a total surface of nearly 175.000 sq. Km. They’re located in a strategic geographical position among the CIS (Community of Independent States), Scandinavia and Western Europe. The three states have almost always ice-free ports and the main resources are forests, covering roughly 40% of the region. Territory is chiefly flat with some areas below the sea level. Climate is generally temperate and continental in the interior. The environmental activism played a significant role after independence. Rivers are among the most polluted zones because half of the drain water was tossed without sewage disposal, together with several areas where people work with chemical processings. In order to preserve the environment an important joint program was set up for the protection of the Baltic Sea, sponsored by the European Union, and aiming not only to protect the sea but also the rivers, which flow into the Baltic Sea. Taking advantage of funding from PHARE programme and World Bank several small projects were carried out and some damages were reduced.  

Transport by roads, by rail and by air.
Transit trade is one of the central resources for the Baltic States. PHARE program has contributed to the integration among the trans-European networks. Other European funds and national budgets will be used for gradual interventions. Among the projects to be realised there are the highway Tallinn- Riga-Vilnius and an extension to Germany, via Poland. In addition, East-West highways are planned which should connect Moscow with the main capitals. 
Since 1990 the number of car owners has doubled, and currently around 25% of the total population has its own car.  
The inland transport registered a significant decrease caused by the switching to railway transport, which now makes up of 50% of internal transport. There are programmes to connect Baltic capitals to Russia, and to the other European countries through Poland, but there are problems of incompatibility as regards the railway gauge.  

Industry
Industrial sector started to grow in 1996 and since then has been growing on average 6% every year.  The strength of the industrial sphere in the Baltic Countries lies in its job-intensive feature and in the low value-added sectors (processing of foodstuffs, timber, textiles).  The accession to the EU highlighted the need of renovating the existing electrical machineries and equipments.  

Building industry
This field got lower in the 90s, but rised up with the connected activities of stope. Building industry has been one of the most dynamic sectors in the latest years, even if almost all building contractors are in the capital and in some of the main cities; there has been a significant growth of projects in order to improve ports, renew roads and build fixtures for the sewage disposal.  In spite of the slow process of returning the properties back and the difficulties in getting a financial support, renovations of houses and flats are speeding up. The major banks grant mortgages and loans ever more frequently.  In 1998 this sector had a boom and achieved a 14% increase between 2002 and 2004. Construction of commercial buildings (retail sale and wholesale) was more dynamic than the building of residential areas.  

Tourism
In the latest years several hotels were built and others renovated, but in the future the number of tourist hotels and connected services is expected to grow further, in particular in rural areas where facilities have to be improved. Indeed, just one third of the tourists tried to visit different locations other than Riga.     Latvia plans to invest some of the funds granted by the European Union in priority infrastructural projects like: - Renovation of the Baltic Way (Finland-Poland); -  connection among the ports of Ventspils, Riga, Liepaja and the corridors of European transport;       -  Modernization of railways, particularly in the east-west direction; -  further development of water systems in Riga, Jelgava, Ventspils and 18 other smaller towns; -  Creating a rubbish tip and a hazardous waste management system; - building a new bridge crossing Daugava river in Riga.  - Development of infrastructures in the special economic areas enclosed to the ports.

 

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