Riga is the capital and largest city of Latvia, a major industrial, commercial, cultural and financial centre of the Baltics, and an important seaport, situated on the mouth of the Daugava. With 706,413 inhabitants (2010) it is the largest city of the Baltic states. Riga’s territory covers 307.17 km2 (118.60 sq mi) and lies between 1 and 10 metres (3.3 and 33 ft) above sea level, on a flat and sandy plain. Riga’s historical centre has been declared a UNESCO World Heritage Site, and the city is particularly notable for its extensive Jugendstil (German Art Nouveau) architecture, which UNESCO considers to be unparalleled anywhere in the world. In 1282 Riga became a member of the Hanseatic League. The Hansa was instrumental in giving Riga economic and political stability, thus providing the city with a strong foundation which endured the political conflagrations that were to come, down to modern times.
The policy of economic reform, introduced in 1986 as Perestroika, led to dissolution of the Soviet Union and restoration of independent Latvia in 1991. Latvia formally joined the United Nations as an independent country on September 17, 1991. In 2004 Latvia joined both NATO and the European Union. In 2004, the arrival of low-cost airlines resulted in cheaper flights from other European cities such as London and Berlin and consequently a substantial increase in numbers of tourists.
Almost all important Latvian financial institutions are located in Riga, including the Bank of Latvia, which is Latvia’s central bank. Foreign commercial trade through Riga has been on the increase in recent years and received new impetus on May 1, 2004 when Latvia became a member of the European Union. Riga accounts for about half of the total industrial output of Latvia, focusing on the financial sector, public utilities, food and beverages, pharmaceuticals, wood processing, printing and publishing, textiles and furniture, and communications equipment manufacturing. More than 50% of Latvian companies are registered in Riga region.
