Is Latgale doomed to economic stagnation? After mass layoffs in Daugavpils, concerns grow over region's future
Three major employers in Daugavpils have announced collective redundancies, which could leave up to 700 people jobless in the coming months. Experts analyse Latgale's economic prospects, pointing to structural issues and exposure to Russia-related risks.
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Latgale, already facing high unemployment, is now confronted with a new challenge: three of its largest employers – "LDz Cargo", "Concentrix" and Grīvas Prison – have initiated collective layoffs. Currently, Daugavpils has about 2,800 unemployed residents, and under the worst-case scenario, another 700 could be added.
This situation forces a re-examination of the already difficult socio-economic conditions in Latgale – a region proud of its talented people, nature and hospitality, but suffering from geopolitical risks linked to Russia's proximity. Experts interviewed by TVNET Business are trying to understand the roots of the region's economic backwardness and seek possible solutions to accelerate its development.
The article, the first in a two-part series, analyses factors contributing to the region's stagnation, including job losses, demographic decline and lack of investment. The second part will offer a deeper discussion of potential development paths.
