Economy - overview:
Latvia is a small, open economy with exports contributing nearly a third 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 softening world economy. Triggered by the collapse of the second largest bank, GDP plunged 18% in 2009. The economy has not returned to pre-crisis levels despite strong growth, especially in the export sector in 2011-12. 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. The government of Prime Minister Valdis DOMBROVSKIS remains committed to fiscal prudence and reducing the fiscal deficit. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises, including 99.8% ownership of the Latvian national airline. Latvia officially joined the World Trade Organization in February 1999 and the EU in May 2004. Latvia intends to join the euro zone in 2014.
GDP (purchasing power parity): GDP (official exchange rate): GDP - real growth rate: GDP - per capita (PPP): Gross national saving: GDP - composition, by end use:
GDP - composition, by sector of origin:
Agriculture - products: Industries: Industrial production growth rate: Labor force: Labor force - by occupation:
Unemployment rate: Population below poverty line: Household income or consumption by percentage share:
Distribution of family income - Gini index: Budget:
Taxes and other revenues: Budget surplus (+) or deficit (-): Public debt: Fiscal year: Inflation rate (consumer prices): Central bank discount rate: Commercial bank prime lending rate: Stock of narrow money: Stock of broad money: Stock of domestic credit: Market value of publicly traded shares: Current account balance: Exports: Exports - commodities: Exports - partners: Imports: Imports - commodities: Imports - partners: Reserves of foreign exchange and gold: Debt - external: Stock of direct foreign investment - at home: Stock of direct foreign investment - abroad: Exchange rates:
$38.87 billion (2013 est.)
country comparison to the world: 109
$37.38 billion (2012 est.)
$35.4 billion (2011 est.)
note:
data are in 2013 US dollars
[see also: GDP country ranks ]
$30.38 billion (2013 est.)
[see also: GDP (official exchange rate) country ranks ]
4% (2013 est.)
country comparison to the world: 76
5.6% (2012 est.)
5.5% (2011 est.)
[see also: GDP - real growth rate country ranks ]
$19,100 (2013 est.)
country comparison to the world: 74
$18,300 (2012 est.)
$17,100 (2011 est.)
note:
data are in 2013 US dollars
[see also: GDP - per capita country ranks ]
23.2% of GDP (2013 est.)
country comparison to the world: 61
24.6% of GDP (2012 est.)
22.7% of GDP (2011 est.)
[see also: Gross national saving country ranks ]
household consumption:
62.4%
government consumption:
15%
investment in fixed capital:
22.5%
investment in inventories:
2.8%
exports of goods and services:
61.3%
imports of goods and services:
-63.9%
(2013 est.)
agriculture:
4.9%
industry:
25.7%
services:
69.4% (2013 est.)
grain, rapeseed, potatoes, vegetables; pork, poultry, milk, eggs; fish
processed foods, processed wood products, textiles, processed metals, pharmaceuticals, railroad cars, synthetic fibers, electronics
4.2% (2013 est.)
country comparison to the world: 69
[see also: Industrial production growth rate country ranks ]
1.022 million (2013 est.)
country comparison to the world: 143
[see also: Labor force country ranks ]
agriculture:
8.8%
industry:
24%
services:
67.2% (2010 est.)
9.8% (2013 est.)
country comparison to the world: 105
11.4% (2012 est.)
[see also: Unemployment rate country ranks ]
NA%
[see also: Population below poverty line country ranks ]
lowest 10%:
2.7%
highest 10%:
27.6% (2008)
35.2 (2010)
country comparison to the world: 90
32 (1999)
[see also: Distribution of family income - Gini index country ranks ]
revenues:
$10.9 billion
expenditures:
$10.95 billion (2013 est.)
35.9% of GDP (2013 est.)
country comparison to the world: 61
[see also: Taxes and other revenues country ranks ]
-0.2% of GDP (2013 est.)
country comparison to the world: 47
[see also: Budget surplus (+) or deficit (-) country ranks ]
39.2% of GDP (2013 est.)
country comparison to the world: 92
40.7% of GDP (2012 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
[see also: Public debt country ranks ]
calendar year
0.2% (2013 est.)
country comparison to the world: 12
2.3% (2012 est.)
[see also: Inflation rate (consumer prices) country ranks ]
3.5% (31 December 2011 est.)
country comparison to the world: 99
3.5% (31 December 2010 est.)
[see also: Central bank discount rate country ranks ]
5% (31 December 2013 est.)
country comparison to the world: 141
5.52% (31 December 2012 est.)
[see also: Commercial bank prime lending rate country ranks ]
$9.865 billion (31 December 2013 est.)
country comparison to the world: 78
$9.099 billion (31 December 2012 est.)
[see also: Stock of narrow money country ranks ]
$12.57 billion (31 December 2013 est.)
country comparison to the world: 98
$12.63 billion (31 December 2012 est.)
[see also: Stock of broad money country ranks ]
$17.39 billion (31 December 2013 est.)
country comparison to the world: 85
$18.39 billion (31 December 2012 est.)
[see also: Stock of domestic credit country ranks ]
$1.115 billion (31 December 2012 est.)
country comparison to the world: 98
$1.076 billion (31 December 2011)
$1.252 billion (31 December 2010 est.)
[see also: Market value of publicly traded shares country ranks ]
-$613.9 million (2013 est.)
country comparison to the world: 107
-$473.4 million (2012 est.)
[see also: Current account balance country ranks ]
$12.67 billion (2013 est.)
country comparison to the world: 88
$12.23 billion (2012 est.)
[see also: Exports country ranks ]
food products, wood and wood products, metals, machinery and equipment, textiles
Russia 18.2%, Lithuania 14.9%, Estonia 12.1%, Germany 7.5%, Poland 5.6%, Sweden 4.8% (2012)
$15.56 billion (2013 est.)
country comparison to the world: 87
$15.15 billion (2012 est.)
[see also: Imports country ranks ]
machinery and equipment, consumer goods, chemicals, fuels, vehicles
Lithuania 19.1%, Germany 11.6%, Russia 9.2%, Poland 8.2%, Estonia 7.6%, Italy 4.6%, Finland 4.4% (2012)
$7.22 billion (31 December 2013 est.)
country comparison to the world: 82
$7.523 billion (31 December 2012 est.)
[see also: Reserves of foreign exchange and gold country ranks ]
$39.87 billion (31 December 2013 est.)
country comparison to the world: 66
$39.43 billion (31 December 2012 est.)
[see also: Debt - external country ranks ]
$15.49 billion (31 December 2013 est.)
country comparison to the world: 79
$14.14 billion (31 December 2012 est.)
[see also: Stock of direct foreign investment - at home country ranks ]
$2.212 billion (31 December 2013 est.)
country comparison to the world: 70
$1.992 billion (31 December 2012 est.)
[see also: Stock of direct foreign investment - abroad country ranks ]
lati (LVL) per US dollar -
0.5313 (2013 est.)
0.5469 (2012 est.)
0.5305 (2010 est.)
0.5056 (2009)
0.4701 (2008)
note:
Latvia joined the EMU and adopted the euro as its currency on 1 January 2014