Latvia - Economic Indicators
Economic Overview
Latvia is a small, open economy with exports contributing more than half of GDP. Due to its geographical location, transit services are highly-developed, along with timber and wood-processing, agriculture and food products, and manufacturing of machinery and electronics industries. Corruption continues to be an impediment to attracting foreign direct investment and Latvia's low birth rate and decreasing population are major challenges to its long-term economic vitality. Latvia's economy experienced GDP growth of more than 10% per year during 2006-07, but entered a severe recession...
| GDP | Reference | Last | Previous | Units | Frequency |
|---|---|---|---|---|---|
| Private Consumption | 2022 Q2 | 5,555,167 | 5,468,816 | Ths. EUR, NSA | Quarterly |
| Real Private Consumption | 2022 Q2 | 4,257,750 | 4,497,537 | Ths. Ch. 2015 EUR, NSA | Quarterly |
| Real Gross Domestic Product | 2022 Q2 | 7,285,596 | 6,397,651 | Ths. Ch. 2015 EUR, NSA | Quarterly |
| Real Fixed Investment (gross fixed capital formation) | 2022 Q2 | 1,602,449 | 1,220,959 | Ths. Ch. 2015 EUR, NSA | Quarterly |
| Nominal Gross Domestic Product | 2022 Q2 | 9,742,882 | 8,362,473 | Ths. EUR, NSA | Quarterly |
| Investment | 2022 Q2 | 3,119,404 | 1,826,346 | Ths. EUR, NSA | Quarterly |
| Real Investment | 2022 Q2 | 2,802,533 | 1,430,729 | Ths. Ch. 2015 EUR, NSA | Quarterly |
| Government Consumption | 2022 Q2 | 1,798,844 | 1,529,374 | Ths. EUR, NSA | Quarterly |
| Nominal Fixed Investment (gross fixed capital formation) | 2022 Q2 | 2,031,280 | 1,474,303 | Ths. EUR, NSA | Quarterly |
| Real Government Consumption | 2022 Q2 | 1,457,009 | 1,149,815 | Ths. Ch. 2015 EUR, NSA | Quarterly |
| Price | Reference | Last | Previous | Units | Frequency |
| Producer Price Index (PPI) | Aug 2022 | 166.1 | 159.5 | Index 2015=100, NSA | Monthly |
| Consumer Price Index (CPI) | Aug 2022 | 137 | 136.4 | Index 2015=100, NSA | Monthly |
| Wholesale Price Index | 2016 | 110.08 | 112.75 | Index 2010 = 100 | Annual |
| Labor | Reference | Last | Previous | Units | Frequency |
| Wage & Salaries | Jun 2022 | 1,382 | 1,361 | EUR, NSA | Monthly |
| Real Wages & Salaries | Jun 2022 | 99.1 | 97.7 | Index prv. per.=100, NSA | Monthly |
| Labor Force | 2022 Q2 | 948.82 | 941.29 | Ths. #, SA | Quarterly |
| Unemployment Rate | 2022 Q2 | 6.46 | 7.04 | %, SA | Quarterly |
| Agriculture Employment | 2017 | 74,974 | 77,587 | # | Annual |
| Primary Industries Employment | 2017 Q2 | 60 | 61.4 | Ths. #, NSA | Quarterly |
| Trade | Reference | Last | Previous | Units | Frequency |
| Current Account Balance | Jul 2022 | -217 | -206 | Mil. EUR, NSA | Monthly |
| Exports of Goods | Jul 2022 | 1,595 | 1,650 | Mil. EUR, NSA | Monthly |
| Imports of Goods | Jul 2022 | 2,237 | 2,031 | Mil. EUR, NSA | Monthly |
| Balance of Goods | Jul 2022 | -641.93 | -381.55 | Mil. EUR, NSA | Monthly |
| Real Exports of Goods and Services | 2022 Q2 | 4,865,432 | 4,727,950 | Ths. Ch. 2015 EUR, NSA | Quarterly |
| Imports of Goods and Services | 2022 Q2 | 7,380,455 | 6,494,469 | Ths. EUR, NSA | Quarterly |
| Real Imports of Goods and Services | 2022 Q2 | 6,042,874 | 5,591,304 | Ths. Ch. 2015 EUR, NSA | Quarterly |
| Exports of Goods and Services | 2022 Q2 | 6,649,922 | 6,032,406 | Ths. EUR, NSA | Quarterly |
| Real Net Exports | 2019 Q2 | -278,929 | -151,814 | Ths. Ch. 2010 EUR, NSA | Quarterly |
| Net Exports | 2019 Q2 | -67,796 | 103,354 | Ths. EUR, NSA | Quarterly |
| Government | Reference | Last | Previous | Units | Frequency |
| Government Expenditures | 2022 Q1 | 3,412 | 4,466 | Mil. EUR, NSA | Quarterly |
| Government Budget Balance | 2022 Q1 | -71.82 | -1,156 | Mil. EUR, NSA | Quarterly |
| Government Revenues | 2022 Q1 | 3,340 | 3,309 | Mil. EUR, NSA | Quarterly |
| Gross External Debt | 2021 Q2 | 8,273,640,800 | 8,882,860,000 | USD, NSA | Quarterly |
| Outstanding Public Debt - Foreign | 2021 Q2 | 4,494,528,800 | 5,071,062,500 | USD, NSA | Quarterly |
| Outstanding Public Debt - Domestic | 2021 Q2 | 38,596,855,200 | 37,543,450,000 | USD, NSA | Quarterly |
| Markets | Reference | Last | Previous | Units | Frequency |
| Stock Market Index | 29 Sep 2022 | 1,055 | 1,051 | Index, NSA | Business Daily |
| Average Long-term Government Bond | Aug 2022 | 2.29 | 2.47 | % p.a., NSA | Monthly |
| Household Lending Rate | Aug 2022 | 16.09 | 15.65 | % , NSA | Monthly |
| Business Lending Rate | Aug 2022 | 2.11 | 2.29 | % , NSA | Monthly |
| Monetary Policy Rate | May 2021 | -0.5 | %, NSA | Monthly | |
| Treasury Bills (over 31 days) | Dec 2013 | 0.23 | % p.a., NSA | Monthly | |
| Lending Rate | Mar 2013 | 2.5 | 2.5 | % - End of period | Monthly |
| Real Estate | Reference | Last | Previous | Units | Frequency |
| Building Permits | 2022 Q2 | 1,365 | 1,108 | #, NSA | Quarterly |
| Non-residential Building Permits | 2022 Q2 | 374 | 411 | #, NSA | Quarterly |
| Residential Building Permits | 2022 Q2 | 991 | 697 | #, NSA | Quarterly |
| House Price Index for Existing Homes | 2022 Q2 | 191.6 | 183.56 | Index 2015=100, NSA | Quarterly |
| House Price Index for New Homes | 2022 Q2 | 165.63 | 150.1 | Index 2015=100, NSA | Quarterly |
| House Price Index | 2022 Q2 | 185.76 | 176.06 | Index 2015=100, NSA | Quarterly |
| Residential Building Completions | 2022 Q2 | 101.4 | 72.1 | Ths. m², NSA | Quarterly |
| Consumer | Reference | Last | Previous | Units | Frequency |
| Consumer Confidence | Sep 2022 | -31.3 | -29.1 | SA | Monthly |
| Retail Sales | Aug 2022 | 162.87 | 162.31 | Index 2015=100, SA | Monthly |
| Real Retail Sales | Aug 2022 | 123.03 | 122.84 | Vol. Index 2015=100, SA | Monthly |
| Business | Reference | Last | Previous | Units | Frequency |
| Capacity Utilization | 2022 Q3 | 76.4 | 75.4 | %, SA | Quarterly |
| Business Confidence | Sep 2022 | -8.4 | -5.7 | SA | Monthly |
| Industrial Production | Jul 2022 | 122.44 | 123.94 | Vol. Index 2015=100, SA | Monthly |
| Change in Inventories | 2022 Q2 | 1,088,124 | 352,043 | Ths. EUR, NSA | Quarterly |
| Demographics | Reference | Last | Previous | Units | Frequency |
| Population | Aug 2022 | 1,895 | 1,896 | Ths., NSA | Monthly |
| Births | Jul 2022 | 1,416 | 1,452 | #, NSA | Monthly |
| Deaths | Jul 2022 | 2,206 | 2,296 | #, NSA | Monthly |
| Net Migration | 2017 | -50,000 | # | Annual | |
| Birth Rate | 2015 | 11.1 | # per Ths. pop. | Annual | |
| Death Rate | 2015 | 14.4 | # per Ths. pop. | Annual |
Factbook
Background
Background:
Several eastern Baltic tribes merged in medieval times to form the ethnic core of the Latvian people (ca. 8th-12th centuries A.D.). The region subsequently came under the control of Germans, Poles, Swedes, and finally, Russians. A Latvian republic emerged following World War I, but it was annexed by the USSR in 1940 - an action never recognized by the US and many other countries. Latvia reestablished its independence in 1991 following the breakup of the Soviet Union. Although the last Russian troops left in 1994, the status of the Russian minority (some 26% of the population) remains of concern to Moscow. Latvia acceded to both NATO and the EU in the spring of 2004; it joined the euro zone in 2014 and the OECD in 2016. A dual citizenship law was adopted in 2013, easing naturalization for non-citizen children.
Geography
Location:
Eastern Europe, bordering the Baltic Sea, between Estonia and Lithuania
Geographic coordinates:
57 00 N, 25 00 E
Map references:
Europe
Area:
total: 64,589 sq km
land: 62,249 sq km
water: 2,340 sq km
country comparison to the world: 125
Area - comparative:
slightly larger than West Virginia
Area comparison map:
Land boundaries:
total: 1,370 km
border countries (4): Belarus 161 km, Estonia 333 km, Lithuania 544 km, Russia 332 km
Coastline:
498 km
Maritime claims:
territorial sea: 12 nm
exclusive economic zone: limits as agreed to by Estonia, Finland, Latvia, Sweden, and Russia
continental shelf: 200 m depth or to the depth of exploitation
Climate:
maritime; wet, moderate winters
Terrain:
low plain
Elevation:
mean elevation: 87 m
elevation extremes: lowest point: Baltic Sea 0 m
highest point: Gaizina Kalns 312 m
Natural resources:
peat, limestone, dolomite, amber, hydropower, timber, arable land
Land use:
agricultural land: 29.2%
arable land 18.6%; permanent crops 0.1%; permanent pasture 10.5%
forest: 54.1%
other: 16.7% (2011 est.)
Irrigated land:
12 sq km
note: land in Latvia is often too wet and in need of drainage not irrigation; approximately 16,000 sq km or 85% of agricultural land has been improved by drainage (2012)
Population - distribution:
largest concentration of people is found in and around the port and capital city of Riga; small agglomerations are scattered throughout the country
Natural hazards:
large percentage of agricultural fields can become waterlogged and require drainage
Environment - current issues:
while land, water, and air pollution are evident, Latvia's environment has benefited from a shift to service industries after the country regained independence; improvements have occurred in drinking water quality, sewage treatment, household and hazardous waste management, as well as reduction of air pollution; nature protection; management of water resources and protection of the Baltic Sea
Environment - international agreements:
party to: Air Pollution, Air Pollution-Persistent Organic Pollutants, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Ship Pollution, Wetlands
signed, but not ratified: none of the selected agreements
Geography - note:
most of the country is composed of fertile low-lying plains with some hills in the east
People & Society
Population:
1,944,643 (July 2017 est.)
country comparison to the world: 149
Nationality:
noun: Latvian(s)
adjective: Latvian
Ethnic groups:
Latvian 62%, Russian 25.4%, Belarusian 3.3%, Ukrainian 2.2%, Polish 2.1%, Lithuanian 1.2%, other 3.8% (2017 est.)
Languages:
Latvian (official) 56.3%, Russian 33.8%, other 0.6% (includes Polish, Ukrainian, and Belarusian), unspecified 9.4%
note: data represent language usually spoken at home (2011 est.)
Religions:
Lutheran 19.6%, Orthodox 15.3%, other Christian 1%, other 0.4%, unspecified 63.7% (2006)
Age structure:
0-14 years: 15.15% (male 151,195/female 143,388)
15-24 years: 9.45% (male 94,779/female 88,952)
25-54 years: 41.75% (male 403,699/female 408,277)
55-64 years: 14.1% (male 121,993/female 152,260)
65 years and over: 19.55% (male 124,570/female 255,530) (2017 est.)
population pyramid:
Dependency ratios:
total dependency ratio: 52.5
youth dependency ratio: 23.1
elderly dependency ratio: 29.4
potential support ratio: 3.4 (2015 est.)
Median age:
total: 43.6 years
male: 39.7 years
female: 46.9 years (2017 est.)
country comparison to the world: 16
Population growth rate:
-1.08% (2017 est.)
country comparison to the world: 229
Birth rate:
9.7 births/1,000 population (2017 est.)
country comparison to the world: 198
Death rate:
14.5 deaths/1,000 population (2017 est.)
country comparison to the world: 4
Net migration rate:
-6.1 migrant(s)/1,000 population (2017 est.)
country comparison to the world: 199
Population distribution:
largest concentration of people is found in and around the port and capital city of Riga; small agglomerations are scattered throughout the country
Urbanization:
urban population: 67.4% of total population (2017)
rate of urbanization: -0.56% annual rate of change (2015-20 est.)
Major urban areas - population:
RIGA (capital) 621,000 (2015)
Sex ratio:
at birth: 1.05 male(s)/female
0-14 years: 1.05 male(s)/female
15-24 years: 1.07 male(s)/female
25-54 years: 0.98 male(s)/female
55-64 years: 0.79 male(s)/female
65 years and over: 0.48 male(s)/female
total population: 0.85 male(s)/female (2017 est.)
Mother's mean age at first birth:
27.2 years (2014 est.)
Maternal mortality ratio:
18 deaths/100,000 live births (2015 est.)
country comparison to the world: 130
Infant mortality rate:
total: 5.2 deaths/1,000 live births
male: 5.6 deaths/1,000 live births
female: 4.8 deaths/1,000 live births (2017 est.)
country comparison to the world: 175
Life expectancy at birth:
total population: 74.7 years
male: 70.1 years
female: 79.5 years (2017 est.)
country comparison to the world: 121
Total fertility rate:
1.51 children born/woman (2017 est.)
country comparison to the world: 196
Health expenditures:
5.9% of GDP (2014)
country comparison to the world: 105
Physicians density:
3.21 physicians/1,000 population (2015)
Hospital bed density:
5.8 beds/1,000 population (2013)
Drinking water source:
improved:
urban: 99.8% of population
rural: 98.3% of population
total: 99.3% of population
unimproved:
urban: 0.2% of population
rural: 1.7% of population
total: 0.7% of population (2015 est.)
Sanitation facility access:
improved:
urban: 90.8% of population
rural: 81.5% of population
total: 87.8% of population
unimproved:
urban: 9.2% of population
rural: 18.5% of population
total: 12.2% of population (2015 est.)
HIV/AIDS - adult prevalence rate:
0.7% (2016 est.)
country comparison to the world: 52
HIV/AIDS - people living with HIV/AIDS:
6,600 (2016 est.)
country comparison to the world: 104
HIV/AIDS - deaths:
<500 (2016 est.)
Major infectious diseases:
degree of risk: intermediate
vectorborne diseases: tickborne encephalitis (2016)
Obesity - adult prevalence rate:
23.6% (2016)
country comparison to the world: 65
Education expenditures:
5.3% of GDP (2014)
country comparison to the world: 77
Literacy:
definition: age 15 and over can read and write
total population: 99.9%
male: 99.9%
female: 99.9% (2015 est.)
School life expectancy (primary to tertiary education):
total: 16 years
male: 16 years
female: 17 years (2014)
Unemployment, youth ages 15-24:
total: 16.3%
male: 18%
female: 14.1% (2015 est.)
country comparison to the world: 83
Government
Country name:
conventional long form: Republic of Latvia
conventional short form: Latvia
local long form: Latvijas Republika
local short form: Latvija
former: Latvian Soviet Socialist Republic
etymology: the name "Latvia" originates from the ancient Latgalians, one of four eastern Baltic tribes that formed the ethnic core of the Latvian people (ca. 8th-12th centuries A.D.)
Government type:
parliamentary republic
Capital:
name: Riga
geographic coordinates: 56 57 N, 24 06 E
time difference: UTC+2 (7 hours ahead of Washington, DC, during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October
Administrative divisions:
110 municipalities (novadi, singular - novads) and 9 cities
municipalities: Adazu Novads, Aglonas Novads, Aizkraukles Novads, Aizputes Novads, Aknistes Novads, Alojas Novads, Alsungas Novads, Aluksnes Novads, Amatas Novads, Apes Novads, Auces Novads, Babites Novads, Baldones Novads, Baltinavas Novads, Balvu Novads, Bauskas Novads, Beverinas Novads, Brocenu Novads, Burtnieku Novads, Carnikavas Novads, Cesu Novads, Cesvaines Novads, Ciblas Novads, Dagdas Novads, Daugavpils Novads, Dobeles Novads, Dundagas Novads, Durbes Novads, Engures Novads, Erglu Novads, Garkalnes Novads, Grobinas Novads, Gulbenes Novads, Iecavas Novads, Ikskiles Novads, Ilukstes Novads, Incukalna Novads, Jaunjelgavas Novads, Jaunpiebalgas Novads, Jaunpils Novads, Jekabpils Novads, Jelgavas Novads, Kandavas Novads, Karsavas Novads, Keguma Novads, Kekavas Novads, Kocenu Novads, Kokneses Novads, Kraslavas Novads, Krimuldas Novads, Krustpils Novads, Kuldigas Novads, Lielvardes Novads, Ligatnes Novads, Limbazu Novads, Livanu Novads, Lubanas Novads, Ludzas Novads, Madonas Novads, Malpils Novads, Marupes Novads, Mazsalacas Novads, Mersraga Novads, Nauksenu Novads, Neretas Novads, Nicas Novads, Ogres Novads, Olaines Novads, Ozolnieku Novads, Pargaujas Novads, Pavilostas Novads, Plavinu Novads, Preilu Novads, Priekules Novads, Priekulu Novads, Raunas Novads, Rezeknes Novads, Riebinu Novads, Rojas Novads, Ropazu Novads, Rucavas Novads, Rugaju Novads, Rujienas Novads, Rundales Novads, Salacgrivas Novads, Salas Novads, Salaspils Novads, Saldus Novads, Saulkrastu Novads, Sejas Novads, Siguldas Novads, Skriveru Novads, Skrundas Novads, Smiltenes Novads, Stopinu Novads, Strencu Novads, Talsu Novads, Tervetes Novads, Tukuma Novads, Vainodes Novads, Valkas Novads, Varaklanu Novads, Varkavas Novads, Vecpiebalgas Novads, Vecumnieku Novads, Ventspils Novads, Viesites Novads, Vilakas Novads, Vilanu Novads, Zilupes Novads
cities: Daugavpils, Jekabpils, Jelgava, Jurmala, Liepaja, Rezekne, Riga, Valmiera, Ventspils
Independence:
4 May 1990 (declared independence from the Soviet Union); 6 September 1991 (recognized by the Soviet Union)
National holiday:
Independence Day (Republic of Latvia Proclamation Day), 18 November (1918); note - 18 November 1918 was the date Latvia established its statehood and its concomitant independence from Soviet Russia; 4 May 1990 was the date it declared the restoration of Latvian statehood and its concomitant independence from the Soviet Union
Constitution:
history: several previous (pre-1991 independence); note - following the restoration of independence in 1991, parts of the 1922 constitution were reintroduced 4 May 1990 and fully reintroduced 6 July 1993
amendments: proposed by two-thirds of Parliament members or by petition of one-tenth of qualified voters submitted through the president; passage requires at least two-thirds majority vote of Parliament in each of three readings; amendment of constitutional articles including national sovereignty, language, the parliamentary electoral system, and constitutional amendment procedures requires passage in a referendum by majority vote of at least one-half of the electorate; amended several times, last in 2014 (2016)
Legal system:
civil law system with traces of socialist legal traditions and practices
International law organization participation:
has not submitted an ICJ jurisdiction declaration; accepts ICCt jurisdiction
Citizenship:
citizenship by birth: no
citizenship by descent only: at least one parent must be a citizen of Latvia
dual citizenship recognized: no
residency requirement for naturalization: 5 years
Suffrage:
18 years of age; universal
Executive branch:
chief of state: President Raimonds VEJONIS (since 8 July 2015)
head of government: Prime Minister Maris KUCINSKIS (since 11 February 2016); Deputy Prime Minister Arvils ASERADENS (since 11 February 2016)
cabinet: Cabinet of Ministers nominated by the prime minister, appointed by Parliament
elections/appointments: president indirectly elected by Parliament for a 4-year term (eligible for a second term); election last held on 3 June 2015 (next to be held in 2019); prime minister appointed by the president, confirmed by Parliament
election results: Raimonds VEJONIS elected president; Parliament vote - Raimonds VEJONIS 55 of 100
Legislative branch:
description: unicameral Parliament or Saeima (100 seats; members directly elected in multi-seat constituencies by proportional representation vote; members serve 4-year terms)
elections: last held on 4 October 2014 (next to be held in October 2018)
election results: percent of vote by party - SC 23%, Unity 21.9%, ZZS 19.5%, NA 16.6%, NSL 6.9%, LRA 6.7%, other 5.4%; seats by party - SC 24, Unity 23, ZZS 21, NA 17, LRA 8, NSL 7
Judicial branch:
highest court(s): Supreme Court (consists of the Senate with 27 judges and Supreme Court of Chambers with 22 judges); Constitutional Court (consists of 7 judges)
judge selection and term of office: Supreme Court judges nominated by chief justice and confirmed by the Saeima; judges serve until age 70, but term can be extended 2 years; Constitutional Court judges - 3 nominated by Saeima members, 2 by Cabinet ministers, and 2 by plenum of Supreme Court; all judges confirmed by Saeima majority vote; Constitutional Court president and vice president serve in their positions for 3 years; all judges serve 10-year terms; mandatory retirement at age 70
subordinate courts: district (city) and regional courts
Political parties and leaders:
Alliance of Regions or LRA [Martins BONDARS]
For Latvia from the Heart or NSL [Inguna SUDRABA]
Social Democratic Party "Harmony" or SC [Nils USAKOVS]
National Alliance "All For Latvia!"-"For Fatherland and Freedom/LNNK" or NA [Gaidis BERZINS, Raivis DZINTARS]
Union of Greens and Farmers or ZZS [Augusts BRIGMANIS]
Unity [Andris PIEBALGS]
Political pressure groups and leaders:
Latvian Employers' Confederation or LDDK [Vitalijs GAVRILOVS]
Farmers' Parliament or ZSA [Juris LAZDINS]
Free Trade Union Confederation of Latvia or LBAS [Egils BALDZENS]
International organization participation:
Australia Group, BA, BIS, CBSS, CD, CE, EAPC, EBRD, ECB, EIB, EMU, ESA (cooperating state), EU, FAO, IAEA, IBRD, ICAO, ICC (NGOs), ICCt, ICRM, IDA, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO (correspondent), ITU, ITUC (NGOs), MIGA, NATO, NIB, NSG, OAS (observer), OIF (observer), OPCW, OSCE, PCA, Schengen Convention, UN, UNCTAD, UNESCO, UNHCR, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO
Diplomatic representation in the US:
chief of mission: Ambassador Andris TEIKMANIS (since 16 September 2016)
chancery: 2306 Massachusetts Ave. NW, Washington, DC 20008
telephone: [1] (202) 328-2840
FAX: [1] (202) 328-2860
Diplomatic representation from the US:
chief of mission: Ambassador Nancy Bikoff PETTIT (since 8 September 2015)
embassy: 1 Samnera Velsa St, Riga LV-1510
mailing address: Embassy of the United States of America, 1 Samnera Velsa St, Riga, LV-1510, Latvia
telephone: [371] 6710-7000
FAX: [371] 6710-7050
Flag description:
three horizontal bands of maroon (top), white (half-width), and maroon; the flag is one of the older banners in the world; a medieval chronicle mentions a red standard with a white stripe being used by Latvian tribes in about 1280
National symbol(s):
white wagtail (bird); national colors: maroon, white
National anthem:
name: "Dievs, sveti Latviju!" (God Bless Latvia)
lyrics/music: Karlis BAUMANIS
note: adopted 1920, restored 1990; first performed in 1873 while Latvia was a part of Russia; banned during the Soviet occupation from 1940 to 1990
Economy
Economy - overview:
Latvia is a small, open economy with exports contributing more than half of GDP. Due to its geographical location, transit services are highly-developed, along with timber and wood-processing, agriculture and food products, and manufacturing of machinery and electronics industries. Corruption continues to be an impediment to attracting foreign direct investment and Latvia's low birth rate and decreasing population are major challenges to its long-term economic vitality.
Latvia's economy experienced GDP growth of more than 10% per year during 2006-07, but entered a severe recession in 2008 as a result of an unsustainable current account deficit and large debt exposure amid the slowing world economy. Triggered by the collapse of the second largest bank, GDP plunged by more than 14% in 2009 and, despite strong growth since 2011, the economy took until 2017 return to pre-crisis levels in real terms. Strong investment and consumption, the latter stoked by rising wages, helped the economy grow by more than 4% in 2017, while inflation rose to 3%. Continued gains in competitiveness and investment will be key to maintaining economic growth, especially in light of unfavorable demographic trends, including the emigration of skilled workers, and one of the highest levels of income inequality in the EU.
In the wake of the 2008-09 crisis, the IMF, EU, and other international donors provided substantial financial assistance to Latvia as part of an agreement to defend the currency's peg to the euro in exchange for the government's commitment to stringent austerity measures. The IMF/EU program successfully concluded in December 2011, although, the austerity measures imposed large social costs. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises, including 80% ownership of the Latvian national airline. Latvia officially joined the World Trade Organization in February 1999 and the EU in May 2004. Latvia also joined the euro zone in 2014 and the OECD in 2016.
GDP (purchasing power parity):
$53.47 billion (2017 est.)
$51.49 billion (2016 est.)
$50.5 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 109
GDP (official exchange rate):
$30.18 billion (2017 est.)
GDP - real growth rate:
3.8% (2017 est.)
2% (2016 est.)
2.7% (2015 est.)
country comparison to the world: 79
GDP - per capita (PPP):
$27,300 (2017 est.)
$26,100 (2016 est.)
$25,400 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 73
Gross national saving:
20.9% of GDP (2017 est.)
21.4% of GDP (2016 est.)
21.3% of GDP (2015 est.)
country comparison to the world: 83
GDP - composition, by end use:
household consumption: 63.1%
government consumption: 17.8%
investment in fixed capital: 19.7%
investment in inventories: 0%
exports of goods and services: 60.3%
imports of goods and services: -61% (2017 est.)
GDP - composition, by sector of origin:
agriculture: 3.2%
industry: 21.6%
services: 75.2% (2017 est.)
Agriculture - products:
grain, rapeseed, potatoes, vegetables; pork, poultry, milk, eggs; fish
Industries:
processed foods, processed wood products, textiles, processed metals, pharmaceuticals, railroad cars, synthetic fibers, electronics
Industrial production growth rate:
2.4% (2017 est.)
country comparison to the world: 116
Labor force:
990,000 (2017 est.)
country comparison to the world: 144
Labor force - by occupation:
agriculture: 7.7%
industry: 24.1%
services: 68.1% (2016 est.)
Unemployment rate:
9% (2017 est.)
9.6% (2016 est.)
country comparison to the world: 123
Population below poverty line:
25.5% (2015 est.)
Household income or consumption by percentage share:
lowest 10%: 2.2%
highest 10%: 26.3% (2015 est.)
Distribution of family income - Gini index:
34.5 (2015 est.)
35.4 (2014 est.)
country comparison to the world: 102
Budget:
revenues: $10.13 billion
expenditures: $10.43 billion (2017 est.)
Taxes and other revenues:
33.6% of GDP (2017 est.)
country comparison to the world: 63
Budget surplus (+) or deficit (-):
-1% of GDP (2017 est.)
country comparison to the world: 57
Public debt:
38.9% of GDP (2017 est.)
40.1% of GDP (2016 est.)
note: data cover general government debt, and includes debt instruments issued (or owned) by government entities, including sub-sectors of central government, state government, local government, and social security funds
country comparison to the world: 140
Fiscal year:
calendar year
Inflation rate (consumer prices):
3% (2017 est.)
0.1% (2016 est.)
country comparison to the world: 129
Central bank discount rate:
0% (31 December 2017 est.)
0.05% (31 December 2015 est.)
country comparison to the world: 156
Commercial bank prime lending rate:
4.6% (31 December 2017 est.)
4.5% (31 December 2016 est.)
country comparison to the world: 149
Stock of narrow money:
$12.77 billion (31 December 2017 est.)
$10.71 billion (31 December 2016 est.)
country comparison to the world: 79
Stock of broad money:
$15.25 billion (31 December 2017 est.)
$12.97 billion (31 December 2016 est.)
country comparison to the world: 98
Stock of domestic credit:
$17.12 billion (31 December 2017 est.)
$15.11 billion (31 December 2016 est.)
country comparison to the world: 94
Market value of publicly traded shares:
$6.76 billion (31 December 2016 est.)
$6.799 billion (31 December 2015 est.)
$7.127 billion (31 December 2014 est.)
country comparison to the world: 79
Current account balance:
$-100 million (2017 est.)
$409 million (2016 est.)
country comparison to the world: 80
Exports:
$12.34 billion (2017 est.)
$11.35 billion (2016 est.)
country comparison to the world: 81
Exports - commodities:
foodstuffs, wood and wood products, metals, machinery and equipment, textiles
Exports - partners:
Lithuania 17.3%, Estonia 11.5%, Russia 11.4%, Germany 6.8%, Sweden 5.7%, UK 5.3%, Poland 5%, Denmark 4.4% (2016)
Imports:
$15.13 billion (2017 est.)
$13.28 billion (2016 est.)
country comparison to the world: 86
Imports - commodities:
machinery and equipment, consumer goods, chemicals, fuels, vehicles
Imports - partners:
Lithuania 16.9%, Germany 12.3%, Poland 10.4%, Estonia 7.9%, Russia 7.4%, Finland 4.3%, Netherlands 4.3% (2016)
Reserves of foreign exchange and gold:
$3.595 billion (31 December 2017 est.)
$3.514 billion (31 December 2016 est.)
country comparison to the world: 100
Debt - external:
$40.02 billion (31 March 2016 est.)
$38.19 billion (31 March 2015 est.)
country comparison to the world: 71
Stock of direct foreign investment - at home:
$16.22 billion (31 December 2017 est.)
$15.36 billion (31 December 2016 est.)
country comparison to the world: 86
Stock of direct foreign investment - abroad:
$2.755 billion (31 December 2017 est.)
$2.485 billion (31 December 2016 est.)
country comparison to the world: 78
Exchange rates:
lati (LVL) per US dollar -
0.91 (2017 est.)
0.9 (2016 est.)
0.9 (2015 est.)
0.9 (2014 est.)
0.75 (2013 est.)
Energy
Electricity access:
electrification - total population: 100% (2016)
Electricity - production:
5.342 billion kWh (2015 est.)
country comparison to the world: 119
Electricity - consumption:
6.712 billion kWh (2015 est.)
country comparison to the world: 111
Electricity - exports:
3.795 billion kWh (2016 est.)
country comparison to the world: 38
Electricity - imports:
4.828 billion kWh (2016 est.)
country comparison to the world: 41
Electricity - installed generating capacity:
2.935 million kW (2015 est.)
country comparison to the world: 98
Electricity - from fossil fuels:
39.1% of total installed capacity (2015 est.)
country comparison to the world: 169
Electricity - from nuclear fuels:
0% of total installed capacity (2015 est.)
country comparison to the world: 127
Electricity - from hydroelectric plants:
54.1% of total installed capacity (2015 est.)
country comparison to the world: 35
Electricity - from other renewable sources:
6.7% of total installed capacity (2015 est.)
country comparison to the world: 85
Crude oil - production:
0 bbl/day (2016 est.)
country comparison to the world: 159
Crude oil - exports:
0 bbl/day (2016 est.)
country comparison to the world: 152
Crude oil - imports:
0 bbl/day (2016 est.)
country comparison to the world: 148
Crude oil - proved reserves:
0 bbl (1 January 2017 est.)
country comparison to the world: 156
Refined petroleum products - production:
0 bbl/day (2016 est.)
country comparison to the world: 163
Refined petroleum products - consumption:
37,680 bbl/day (2016 est.)
country comparison to the world: 117
Refined petroleum products - exports:
22,640 bbl/day (2016 est.)
country comparison to the world: 69
Refined petroleum products - imports:
54,060 bbl/day (2016 est.)
country comparison to the world: 79
Natural gas - production:
0 cu m (2014 est.)
country comparison to the world: 158
Natural gas - consumption:
2.2 billion cu m (2015 est.)
country comparison to the world: 85
Natural gas - exports:
0 cu m (2014 est.)
country comparison to the world: 136
Natural gas - imports:
1.306 billion cu m (2015 est.)
country comparison to the world: 56
Natural gas - proved reserves:
0 cu m (2014 est.)
country comparison to the world: 160
Carbon dioxide emissions from consumption of energy:
7.6 million Mt (2015 est.)
country comparison to the world: 113
Communications
Telephones - fixed lines:
total subscriptions: 362,940
subscriptions per 100 inhabitants: 19 (July 2016 est.)
country comparison to the world: 110
Telephones - mobile cellular:
total: 2,650,273
subscriptions per 100 inhabitants: 136 (July 2016 est.)
country comparison to the world: 147
Telephone system:
general assessment: recent efforts focused on bringing competition to the telecommunications sector; the number of fixed lines is decreasing as mobile-cellular telephone service expands
domestic: number of telecommunications operators has grown rapidly since the fixed-line market opened to competition in 2003; combined fixed-line and mobile-cellular subscribership roughly 150 per 100 persons
international: country code - 371; the Latvian network is now connected via fiber-optic cable to Estonia, Finland, and Sweden (2016)
Broadcast media:
several national and regional commercial TV stations are foreign-owned, 2 national TV stations are publicly owned; system supplemented by privately owned regional and local TV stations; cable and satellite multi-channel TV services with domestic and foreign broadcasts available; publicly owned broadcaster operates 4 radio networks with dozens of stations throughout the country; dozens of private broadcasters also operate radio stations (2007)
Internet country code:
.lv
Internet users:
total: 1,570,374
percent of population: 79.9% (July 2016 est.)
country comparison to the world: 121
Transportation
National air transport system:
number of registered air carriers: 3
inventory of registered aircraft operated by air carriers: 47
annual passenger traffic on registered air carriers: 2,527,368
annual freight traffic on registered air carriers: 2,277,996 mt-km (2015)
Civil aircraft registration country code prefix:
YL (2016)
Airports:
42 (2013)
country comparison to the world: 101
Airports - with paved runways:
total: 18
over 3,047 m: 1
2,438 to 3,047 m: 3
1,524 to 2,437 m: 4
914 to 1,523 m: 3
under 914 m: 7 (2017)
Airports - with unpaved runways:
total: 24
under 914 m: 24 (2013)
Heliports:
1 (2013)
Pipelines:
gas 928 km; refined products 415 km (2013)
Railways:
total: 2,239 km
broad gauge: 2,206 km 1.520-m gauge
narrow gauge: 33 km 0.750-m gauge (2008)
country comparison to the world: 70
Roadways:
total: 70,192 km
paved: 14,959 km
unpaved: 55,233 km (2016)
country comparison to the world: 65
Waterways:
300 km (navigable year-round) (2010)
country comparison to the world: 92
Merchant marine:
total: 65
by type: general cargo 15, oil tanker 8, other 42 (2017)
country comparison to the world: 105
Ports and terminals:
major seaport(s): Riga, Ventspils
Military & Security
Military expenditures:
1.7% of GDP (2017)
1.47% of GDP (2016)
1.05% of GDP (2015)
0.94% of GDP (2014)
0.94% of GDP (2013)
country comparison to the world: 77
Military branches:
National Armed Forces (Nacionalie Brunotie Speki): Land Forces (Latvijas Sauszemes Speki), Navy (Latvijas Juras Speki, includes Coast Guard (Latvijas Kara Flote)), Latvian Air Force (Latvijas Gaisa Speki), Latvian Home Guard (Latvijas Zemessardze) (2017)
Military service age and obligation:
18 years of age for voluntary male and female military service; no conscription; under current law, every citizen is entitled to serve in the armed forces for life (2016)
Transnational Issues
Disputes - international:
Russia demands better Latvian treatment of ethnic Russians in Latvia; boundary demarcated with Latvia and Lithuania; the Latvian parliament has not ratified its 1998 maritime boundary treaty with Lithuania, primarily due to concerns over oil exploration rights; as a member state that forms part of the EU's external border, Latvia has implemented the strict Schengen border rules with Russia
Refugees and internally displaced persons:
stateless persons: 242,736 (2016); note - individuals who were Latvian citizens prior to the 1940 Soviet occupation and their descendants were recognized as Latvian citizens when the country's independence was restored in 1991; citizens of the former Soviet Union residing in Latvia who have neither Latvian nor other citizenship are considered non-citizens (officially there is no statelessness in Latvia) and are entitled to non-citizen passports; children born after Latvian independence to stateless parents are entitled to Latvian citizenship upon their parents' request; non-citizens cannot vote or hold certain government jobs and are exempt from military service but can travel visa-free in the EU under the Schengen accord like Latvian citizens; non-citizens can obtain naturalization if they have been permanent residents of Latvia for at least five years, pass tests in Latvian language and history, and know the words of the Latvian national anthem
Illicit drugs:
transshipment and destination point for cocaine, synthetic drugs, opiates, and cannabis from Southwest Asia, Western Europe, Latin America, and neighboring Baltic countries; despite improved legislation, vulnerable to money laundering due to nascent enforcement capabilities and comparatively weak regulation of offshore companies and the gaming industry; CIS organized crime (including counterfeiting, corruption, extortion, stolen cars, and prostitution) accounts for most laundered proceeds
