Internet use up in Latvia

Retail commerce on the Internet climbed 180 percent in Latvia last year, according to research recently released by the Latvian Internet Association

Retail purchases over the Internet grew from about 100,000 lats ($156,250) in 2000 to about 280,000 lats last year.

Wholesale commerce grew 58 percent last year to 9.5 million lats.

Association head Ina Gudele expects retail sales to triple this year and wholesale sales to climb 60 percent to 70 percent.

The figures follow a substantial increase in Internet use in the country, Gudele said.

According to the research, Latvia had 220,000 regular Internet users at the end of 2001, a 63 percent increase over 2000.

Part of the reason for the increase, Gudele said, was the declining costs of connections.

The number of DSL and cable connections is growing in Latvia, while dial-up connection use is declining.

Internet connections grew 54 percent last year and the total sales of Internet service providers increased 25 percent to 3.16 million lats.

Total investments in Internet companies declined 30 percent last year.

The research showed that businesses were also using the Internet much more than in 2000. About 70 percent of 250 businesses surveyed said that they had their own home page. About 47 percent said they placed an Internet advertisement last year.

Gudele said Internet advertising in Latvia increased about 300 percent last year.

Estonia remains the clear Internet leader in the Baltics. An estimated 33 percent of "economically active" people in Estonia between the ages of 15 and 60 use the Internet on a regular basis.