Last year, the Baltic states experienced the most profound crisis among all of the EU member states, encountering a considerable dual shock caused by the openness of the small economies, the crisis in the global financial system and the imbalance of their economies, which they themselves had tolerated. Many foreign experts foresaw intense agony in the region and a very slow economic recovery. Yet this scenario did not come true, and already since this spring, the Baltic states have been transmitting positive signals one after another about a rally from their deep crisis. This was received with scepticism at first, both at home and abroad, but the scepticism soon transformed into genuine admiration as increasingly convincing good news poured in month after month.

Now we have come so far as to assert that the recession in all three Baltic states is over. In Estonia and Lithuania, there was also a slight year-on-year increase in the second quarter; in Latvia, this will show as soon as the third quarter. Given the events in all three countries, growth forecasts are being raised. In 2011, the Baltic economies will grow by at least 4 per cent, the employment indicators will improve and the economic structure will become more efficient. It has become obvious that the small economies can only be driven forward by competitive manufacturing industries and exports of goods and services. This is also the driving force in the region at the moment, and it should further establish itself as such as time goes on. It is apparent that the crisis has forced energies to be concentrated in companies, industries and the region. As they think of their niche product, more and more manufacturing businesses are also moving towards cooperation in order to streamline business processes. The crisis has brought Baltic businesses closer together, rendering the market even more tightly knit.

The critical stage of the crisis has concluded in Latvia and we are standing on the threshold of a new and promising cycle of development. It is very important to detect new economic prospects promptly and to survey the potential of our economy. There is no doubt that the manufacturing potential of Latvia has not been exploited so far, and neither has the perfect geographical position of the country or the importance of Riga as the regional centre. Now that all the signals both here and on the outside are pointing in the direction that is to be followed; it is the right time to bring Baltic manufacturers together in one place, in Riga, to show others as well as themselves what they are capable of and to be able to make an even greater leap forward in their evolution.

Riga is the geographical centre of the Baltics, and it must become the long-term meeting place for Lithuanian, Latvian and Estonian manufacturers and distributors, where they can share experiences, network, compete on technology, compare the capabilities of manufacturers within a specific industry and draw new ideas for future development. It is important for small countries to strengthen the economic and business ties with their closest neighbours.

Andris Vilks