The CIA World Factbook Every edition, 1992 to 2025 Europe
Economic overview Latvia, in 34 editions.
The entry for Latvia published Economic overview in 34 editions of 34, from 1992 to 2025. The text changed in 29 editions. Each is shown as published. Economic overview in every entry.
- editions changed the text
- 29
- the first edition with it
- 1992
- the latest edition with it
- 2025
Published as “Overview” (1992 to 1995), “Economic overview” (1996 to 2025), “Economy - overview” (1997 to 2019), “Economy-overview” (1998) and “Economy--overview” (1999).
field in that editiontext changed from the edition beforenot in that editionthe edition shownChoose an edition on the strip beside the text, or step through them with the arrows. Mark changes compares it with the edition before: the marks are ours, words added and words removed.
2025 edition
Changed since 2024Published as “Overview”
Latvia is in the process of reforming the centrally planned economy inherited from the former USSR into a market economy. Prices have been freed, and privatization of shops and farms has begun. Latvia lacks natural resources, aside from its arable land and small forests. Its most valuable economic asset is its work force, which is better educated and disciplined than in most of the former Soviet republics. Industrial production is highly diversified, with products ranging from agricultural machinery to consumer
- electronics. One conspicuous vulnerability:
- Latvia produces only 10% of its electric power needs. Latvia in the near term must retain key commercial ties to Russia, Belarus, and Ukraine while moving in the long run toward joint ventures, technological support, and trade ties to the West. Because of the efficiency of its mostly individual farms, Latvians enjoy a diet that is higher in meat, vegetables, and dairy products and lower in grain and potatoes than diets in the 12 non-Baltic republics of the USSR. Good relations with Russia are threatened by animosity between ethnic Russians (34% of the population) and native Latvians.
Latvia is in the process of reforming the centrally planned economy
inherited from the former USSR into a market economy. Prices have been
freed, and privatization of shops and farms has begun. Latvia lacks natural
resources, aside from its arable land and small forests. Its most valuable
economic asset is its work force, which is better educated and disciplined
than in most of the former Soviet republics. Industrial production is highly
diversified, with products ranging from agricultural machinery to consumer
electronics. One conspicuous vulnerability: Latvia produces only 10% of its
electric power needs. Latvia in the near term must retain key commercial
ties to Russia, Belarus, and Ukraine while moving in the long run toward
joint ventures, technological support, and trade ties to the West. Because
of the efficiency of its mostly individual farms, Latvians enjoy a diet that
is higher in meat, vegetables, and dairy products and lower in grain and
potatoes than diets in the 12 non-Baltic republics of the USSR. Good
relations with Russia are threatened by animosity between ethnic Russians
(34% of the population) and native Latvians.
Published as “Overview”
Latvia is in the process of reforming the centrally planned economy inherited from the former USSR into a market economy. Prices have been freed, and privatization of shops and farms has begun. Latvia lacks natural resources, aside from its arable land and small forests. Its most valuable economic asset is its work force, which is better educated and disciplined than in most of the former Soviet republics. Industrial production is highly diversified, with products ranging from agricultural machinery to consumer
- electronics. One conspicuous vulnerability:
- Latvia produces only 10% of its electric power needs. Latvia in the near term must retain key commercial ties to Russia, Belarus, and Ukraine while moving in the long run toward joint ventures with technological support from, and trade ties to the West. Because of the efficiency of its mostly individual farms, Latvians enjoy a diet that is higher in meat, vegetables, and dairy products and lower in grain and potatoes than diets in the 12 non-Baltic republics of the former USSR. Good relations with Russia are threatened by animosity between ethnic Russians (34% of the population) and native Latvians. The cumulative difficulties in replacing old sources of supply and old markets, together with the phasing out of the Russian ruble as the medium of exchange, help account for the sharp 30% drop in GDP in 1992.
Latvia is in the process of reforming the centrally planned economy
inherited from the former USSR into a market economy. Prices have been
freed, and privatization of shops and farms has begun. Latvia lacks natural
resources, aside from its arable land and small forests. Its most valuable
economic asset is its work force, which is better educated and disciplined
than in most of the former Soviet republics. Industrial production is highly
diversified, with products ranging from agricultural machinery to consumer
electronics. One conspicuous vulnerability: Latvia produces only 10% of its
electric power needs. Latvia in the near term must retain key commercial
ties to Russia, Belarus, and Ukraine while moving in the long run toward
joint ventures, ventures with technological support, support from, and trade ties to the West. Because
Because of the efficiency of its mostly individual farms, Latvians enjoy a
diet that
grain and
USSR. GoodRussians
Russians (34% of the population) and native Latvians. The cumulative
difficulties in replacing old sources of supply and old markets, together
with the phasing out of the Russian ruble as the medium of exchange, help
account for the sharp 30% drop in GDP in 1992.
Published as “Overview”
Latvia is rapidly becoming a dynamic market economy, rivaled only by Estonia among the former Soviet states in the speed of its transformation. The transition has been painful with GDP falling over 45% in 1992-93, according to official statistics, and industrial production experiencing even steeper declines. Nevertheless, the government's tough monetary policies and reform program, which foster the development of the private sector and market mechanisms, have kept inflation low, created a dynamic private sector - much of which is not captured in official statistics - and expanded trade ties with the West.
Much of agriculture is already privatized and the government plans to step up the pace of privatization of state enterprises. The economy is now poised for recovery and will benefit from the country's strategic location on the Baltic Sea, its well-educated population, and its diverse - albeit largely obsolete - industrial structure.
Rewritten: too little of the 1993 text remains to mark the changes.
Latvia is rapidly becoming a dynamic market economy, rivaled only by
Estonia among the former Soviet states in the speed of its
transformation. The transition has been painful with GDP falling over
45% in 1992-93, according to official statistics, and industrial
production experiencing even steeper declines. Nevertheless, the
government's tough monetary policies and reform program, which foster
the development of the private sector and market mechanisms, have kept
inflation low, created a dynamic private sector - much of which is not
captured in official statistics - and expanded trade ties with the
West. Much of agriculture is already privatized and the government
plans to step up the pace of privatization of state enterprises. The
economy is now poised for recovery and will benefit from the country's
strategic location on the Baltic Sea, its well-educated population,
and its diverse - albeit largely obsolete - industrial structure.
Published as “Overview”
Latvia is rapidly becoming a dynamic market economy, rivaled only by Estonia among the former Soviet states in the speed of its transformation. However, the transition has been painful; in 1994 the IMF reported a 2% growth in GDP, following steep declines in 1992-93. The government's tough monetary policies and reform program have kept inflation at less than 2% a month, supported a dynamic private sector now accounting for more than half of GDP, and spurred the growth of trade ties with the West.
Much of agriculture is already privatized and the government plans to step up the pace of privatization of state enterprises. Latvia thus is in the midst of recovery, helped by the country's strategic location on the Baltic Sea, its well-educated population, and its diverse - albeit largely obsolete - industrial structure.
Latvia is rapidly becoming a dynamic market economy, rivaled
only by
transformation. The However, the transition has been painful with GDP falling over painful; in
45%1992-93, according to official statistics, and industrial 1994 the
production experiencing even steeper declines. Nevertheless,
IMF reported a 2% growth in GDP, following steep declines in 1992-93.
The government's tough monetary policies and reform program, which foster program have kept
the development of the private sector and market mechanisms,
inflation low, created at less than 2% a month, supported a dynamic private sector - much of which is notcaptured in official statistics - now accounting for more than half of GDP, and expanded spurred the growth of
trade ties with the
and the governmententerprises. Theeconomy enterprises. Latvia thus is now poised for recovery and will benefit from in the country's midst of recovery, helped by the
country's strategic location on the Baltic Sea, its well-educated population,
population, and its diverse - albeit largely obsolete - industrial
structure.
Latvia's economic transformation to a modern market economy - rivaled only by Estonia among the former Soviet states - faltered in 1995 as a result of banking and budget crises. Latvia's largely unregulated financial sector suffered a series of bank failures, including the collapse of the country's largest commercial bank - Bank Baltija - due largely to criminal activity by the owners. The government's attempts to compensate depositors of failed banks exacerbated an existing budget shortfall; poor revenue collection and a soft treasury bill market had already caused the government to incur a larger than expected deficit early in the year.
As a result of the crises, Latvia's budget deficit for 1995 was $168 million, double that originally planned. In addition, GDP growth came to a halt. The Central Bank maintained its tough monetary policies - severely limiting credits to the state, despite the budget problems - helping to keep annual inflation the lowest among the Baltic states, at about 20%. New Prime Minister SKELE wants to invigorate the privatization of industry; agriculture already is mainly in private hands.
Rewritten: too little of the 1995 text remains to mark the changes.
Latvia's economic transformation to a modern
market economy - rivaled only by Estonia among the former Soviet
states - faltered in 1995 as a result of banking and budget crises.
Latvia's largely unregulated financial sector suffered a series of
bank failures, including the collapse of the country's largest
commercial bank - Bank Baltija - due largely to criminal activity by
the owners. The government's attempts to compensate depositors of
failed banks exacerbated an existing budget shortfall; poor revenue
collection and a soft treasury bill market had already caused the
government to incur a larger than expected deficit early in the
year. As a result of the crises, Latvia's budget deficit for 1995
was $168 million, double that originally planned. In addition, GDP
growth came to a halt. The Central Bank maintained its tough
monetary policies - severely limiting credits to the state, despite
the budget problems - helping to keep annual inflation the lowest
among the Baltic states, at about 20%. New Prime Minister SKELE
wants to invigorate the privatization of industry; agriculture
already is mainly in private hands.
Published as “Economy - overview”
In the five years following the implosion of the USSR in December 1991, the Latvian economy has made substantial progress toward establishing a modern market economy and widening economic ties with the West. Two major long-term concerns are the growing trade deficit and the impact of organized crime. The economy in 1996 has largely recovered from the mid-1995 collapse of several commercial banks - including Latvia's large bank, Bank Baltija - and a severe government budget crisis.
Prime Minister SKELE has stated that he expects the country's GDP to grow 5% in 1997 through the implementation of the government's new economic reform program. In December 1996, the government passed a balanced 1997 budget - its first - that SKELE predicts will reduce inflation to 10% to 12% in 1997. Unemployment, which has held steady at about 6% over the past two years, reached roughly 7.5% in 1996. One of SKELE's key objectives for 1997 is to speed up the privatization program, which has lagged behind other areas of reform.
Rewritten: too little of the 1996 text remains to mark the changes.
In the five years following the implosion of the
USSR in December 1991, the Latvian economy has made substantial
progress toward establishing a modern market economy and widening
economic ties with the West. Two major long-term concerns are the
growing trade deficit and the impact of organized crime. The economy
in 1996 has largely recovered from the mid-1995 collapse of several
commercial banks - including Latvia's large bank, Bank Baltija - and a
severe government budget crisis. Prime Minister SKELE has stated that
he expects the country's GDP to grow 5% in 1997 through the
implementation of the government's new economic reform program. In
December 1996, the government passed a balanced 1997 budget - its
first - that SKELE predicts will reduce inflation to 10% to 12% in
1997. Unemployment, which has held steady at about 6% over the past
two years, reached roughly 7.5% in 1996. One of SKELE's key objectives
for 1997 is to speed up the privatization program, which has lagged
behind other areas of reform.
Published as “Economy-overview”
In 1997 Latvia scored the most impressive economic achievements since independence in 1991, with GDP growing by 6% and inflation at 7.4%. GDP is expected to grow 5% in 1998 and inflation to range between 6% and 7%. In 1997 Latvia continued its strict fiscal policy and apparently ended the year with a small fiscal surplus, reflecting higher-than-expected income from customs revenues, excise and business taxes, and restraints on government spending.
Foreign direct investment (FDI) in 1997 was a record $880 million by yearend. Prospects for increasing FDI in 1998 are good if Latvia privatizes at least some of its large companies, including Venspils Nafta (the state oil company). Although Latvia was disappointed that it was not included among the five Central and East European states invited to start EU accession talks in spring 1998, it is likely to join the WTrO in 1998. Latvia's growing current account and trade deficits remain a cause for concern, reaching nearly 10% by yearend. Latvia's trade deficit may even reach 22% of GDP in 1998.
Rewritten: too little of the 1997 text remains to mark the changes.
In 1997 Latvia scored the most impressive economic
achievements since independence in 1991, with GDP growing by 6% and
inflation at 7.4%. GDP is expected to grow 5% in 1998 and inflation to
range between 6% and 7%. In 1997 Latvia continued its strict fiscal
policy and apparently ended the year with a small fiscal surplus,
reflecting higher-than-expected income from customs revenues, excise
and business taxes, and restraints on government spending. Foreign
direct investment (FDI) in 1997 was a record $880 million by yearend.
Prospects for increasing FDI in 1998 are good if Latvia privatizes at
least some of its large companies, including Venspils Nafta (the state
oil company). Although Latvia was disappointed that it was not
included among the five Central and East European states invited to
start EU accession talks in spring 1998, it is likely to join the WTrO
in 1998. Latvia's growing current account and trade deficits remain a
cause for concern, reaching nearly 10% by yearend. Latvia's trade
deficit may even reach 22% of GDP in 1998.
Published as “Economy--overview”
Developments in 1998 include an invitation to join the World Trade Organization (the first Baltic country invited), GDP growth of 3.6% (down from 6% in 1997), and reduced inflation at 4.7% (from 8.4% in 1997). The drop in GDP growth is largely attributable to the impact of Russia's financial crisis and reduced investment in emerging markets following the Asian financial troubles. Unofficial sanctions that Russia imposed in the spring initially hit Latvia's exporters--Russia is among Latvia's top three trade partners--but also prompted them to seek alternative markets.
Latvia continued its strict fiscal and monetary policy, including its second balanced budget and had a 1.8% budget surplus. Its draft 1999 budget is based on conservative projections of 2% to 4% GDP growth and 4.5% inflation. Unemployment climbed to 9.2% in 1998, a considerable increase over the 6.7% rate in 1997. Latvia continued to have a high current account deficit, estimated at about 9%. Privatization of large state utilities--especially the energy sector--was postponed and is unlikely to resume before late 1999.
EU accession remains Latvia's top priority, and Latvia expects to be invited to start EU accession talks by the end of 1999. Continued troubles in the Russian and East Asian economies probably will hold growth to around 2.5% in 1999.
Rewritten: too little of the 1998 text remains to mark the changes.
Developments in 1998 include an invitation to
join the World Trade Organization (the first Baltic country
invited), GDP growth of 3.6% (down from 6% in 1997), and reduced
inflation at 4.7% (from 8.4% in 1997). The drop in GDP growth is
largely attributable to the impact of Russia's financial crisis and
reduced investment in emerging markets following the Asian financial
troubles. Unofficial sanctions that Russia imposed in the spring
initially hit Latvia's exporters--Russia is among Latvia's top three
trade partners--but also prompted them to seek alternative markets.
Latvia continued its strict fiscal and monetary policy, including
its second balanced budget and had a 1.8% budget surplus. Its draft
1999 budget is based on conservative projections of 2% to 4% GDP
growth and 4.5% inflation. Unemployment climbed to 9.2% in 1998, a
considerable increase over the 6.7% rate in 1997. Latvia continued
to have a high current account deficit, estimated at about 9%.
Privatization of large state utilities--especially the energy
sector--was postponed and is unlikely to resume before late 1999. EU
accession remains Latvia's top priority, and Latvia expects to be
invited to start EU accession talks by the end of 1999. Continued
troubles in the Russian and East Asian economies probably will hold
growth to around 2.5% in 1999.
Published as “Economy - overview”
In 1999 Latvia, a transitional economy, experienced zero GDP growth as it continued to feel the impact of the August 1998 Russian financial crisis. Latvia officially joined the World Trade Organization (WTrO) in February 1999 - the first Baltic state to join - band was invited at the Helsinki EU Summit in December 1999 to begin accession talks in early 2000. Unemployment reached 9.6% in 1999, up from 9.2% in 1998 and 6.7% in 1997.
Privatization of large state-owned utilities, especially the energy sector, faced more delays in 1999, but is expected to accelerate in the next two years. Latvia projects 3.5% GDP growth, 3% inflation, and a 2% fiscal deficit in 2000. Preparing for EU membership by 2003 remains a top foreign policy priority.
Rewritten: too little of the 1999 text remains to mark the changes.
In 1999 Latvia, a transitional economy, experienced zero GDP growth as it continued to feel the impact of the August 1998 Russian financial crisis. Latvia officially joined the World Trade Organization (WTrO) in February 1999 - the first Baltic state to join - band was invited at the Helsinki EU Summit in December 1999 to begin accession talks in early 2000. Unemployment reached 9.6% in 1999, up from 9.2% in 1998 and 6.7% in 1997. Privatization of large state-owned utilities, especially the energy sector, faced more delays in 1999, but is expected to accelerate in the next two years. Latvia projects 3.5% GDP growth, 3% inflation, and a 2% fiscal deficit in 2000. Preparing for EU membership by 2003 remains a top foreign policy priority.
Published as “Economy - overview”
In 2000, Latvia's transitional economy recovered from the 1998 Russian financial crisis, largely due to the SKELE government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Latvia's trade dependency on Russia. Latvia officially joined the World Trade Organization in February 1999 - the first Baltic state to join - and was invited at the Helsinki EU Summit in December 1999 to begin accession talks in early 2000.
Unemployment fell to 7.8% in 2000, down from 9.6% in 1999, and 9.2% in 1998. Privatization of large state-owned utilities and the shipping industry faced more delays in 2000, and political instability will continue to delay completion of the privatization process over the next year. Latvia projects 6% GDP growth, 2.5%-3.0% inflation, and a 1.7% fiscal deficit in 2001. Preparing for EU membership over the next few years remains a top foreign policy goal.
In 1999 Latvia, a 2000, Latvia's transitional economy, experienced zero GDP growth as it continued to feel the impact of economy recovered from the August 1998 Russian financial crisis. crisis, largely due to the SKELE government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Latvia's trade dependency on Russia. Latvia officially joined the World Trade Organization (WTrO) in February 1999 - the first Baltic state to join - band and was invited at the Helsinki EU Summit in December 1999 to begin accession talks in early 2000. Unemployment reached 9.6% fell to 7.8% in 1999, up 2000, down from 9.2% 9.6% in 1998 1999, and 6.7% 9.2% in 1997. 1998. Privatization of large state-owned utilities, especially utilities and the energy sector, shipping industry faced more delays in 1999, but is expected 2000, and political instability will continue to accelerate in delay completion of the privatization process over the next two years. year. Latvia projects 3.5% 6% GDP growth, 3% 2.5%-3.0% inflation, and a 2% 1.7% fiscal deficit in 2000. 2001. Preparing for EU membership by 2003 over the next few years remains a top foreign policy priority. goal.
Published as “Economy - overview”
Latvia's transitional economy recovered from the 1998 Russian financial crisis, largely due to the SKELE government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Latvia's trade dependency on Russia. The majority of companies, banks, and real estate have been privatized. Latvia officially joined the World Trade Organization in February 1999. Preparing for EU membership over the next few years continues as a top foreign policy goal. The high current account and internal government deficits remain major concerns.
In 2000, Latvia's transitional economy recovered from the 1998 Russian financial crisis, largely due to the SKELE government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Latvia's trade dependency on Russia. The majority of companies, banks, and real estate have been privatized. Latvia officially joined the World Trade Organization in February 1999 - the first Baltic state to join - and was invited at the Helsinki EU Summit in December 1999 to begin accession talks in early 2000. Unemployment fell to 7.8% in 2000, down from 9.6% in 1999, and 9.2% in 1998. Privatization of large state-owned utilities and the shipping industry faced more delays in 2000, and political instability will continue to delay completion of the privatization process over the next year. Latvia projects 6% GDP growth, 2.5%-3.0% inflation, and a 1.7% fiscal deficit in 2001. 1999. Preparing for EU membership over the next few years remains continues as a top foreign policy goal. The high current account and internal government deficits remain major concerns.
The same text in 2003 and 2004.
Published as “Economy - overview”
Latvia's transitional economy recovered from the 1998 Russian financial crisis, largely due to the SKELE government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Latvia's trade dependency on Russia. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999.
Preparing for EU membership continues as a top foreign policy goal. The current account and internal government deficits remain major concerns, but the government's efforts to increase efficiency in revenue collection may lessen the budget deficit.
Latvia's transitional economy recovered from the 1998 Russian financial crisis, largely due to the SKELE government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Latvia's trade dependency on Russia. The majority of companies, banks, and real estate have been privatized. privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999. Preparing for EU membership over the next few years continues as a top foreign policy goal. The high current account and internal government deficits remain major concerns. concerns, but the government's efforts to increase efficiency in revenue collection may lessen the budget deficit.
Published as “Economy - overview”
Latvia's transitional economy recovered from the 1998 Russian financial crisis, largely due to the government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Latvia's trade dependency on Russia. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999.
EU membership, a top foreign policy goal, came in May 2004. The current account and internal government deficits remain major concerns, but the government's efforts to increase efficiency in revenue collection may lessen the budget deficit. A growing perception that many of Latvia's banks facilitate illicit activity could damage the country's vibrant financial sector.
Latvia's transitional economy recovered from the 1998 Russian financial crisis, largely due to the SKELE government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Latvia's trade dependency on Russia. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999. Preparing for EU membership continues as membership, a top foreign policy goal. goal, came in May 2004. The current account and internal government deficits remain major concerns, but the government's efforts to increase efficiency in revenue collection may lessen the budget deficit. A growing perception that many of Latvia's banks facilitate illicit activity could damage the country's vibrant financial sector.
Published as “Economy - overview”
Latvia's transitional economy recovered from the 1998 Russian financial crisis, largely due to the government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Latvia's trade dependency on Russia. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999.
EU membership, a top foreign policy goal, came in May 2004. The current account deficit - 11.5% of GDP in 2005 - remains a major concern. A growing perception that many of Latvia's banks facilitate illicit activity could damage the country's vibrant financial sector.
Latvia's transitional economy recovered from the 1998 Russian financial crisis, largely due to the government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Latvia's trade dependency on Russia. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999. EU membership, a top foreign policy goal, came in May 2004. The current account and internal government deficits remain major concerns, but the government's efforts to increase efficiency deficit - 11.5% of GDP in revenue collection may lessen the budget deficit. 2005 - remains a major concern. A growing perception that many of Latvia's banks facilitate illicit activity could damage the country's vibrant financial sector.
Published as “Economy - overview”
Latvia's economy experienced average GDP growth of more than 7.0% over the past several years. In 2006 it reached 10.2% real GDP growth. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999. EU membership, a top foreign policy goal, came in May 2004. The current account deficit - more than 15% of GDP in 2006 - and inflation remain major concerns.
Latvia's transitional economy recovered from the 1998 Russian financial crisis, largely due to the government's budget stringency and a gradual reorientation experienced average GDP growth of exports toward EU countries, lessening Latvia's trade dependency on Russia. more than 7.0% over the past several years. In 2006 it reached 10.2% real GDP growth. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999. EU membership, a top foreign policy goal, came in May 2004. The current account deficit - 11.5% more than 15% of GDP in 2005 2006 - remains a and inflation remain major concern. A growing perception that many of Latvia's banks facilitate illicit activity could damage the country's vibrant financial sector. concerns.
Published as “Economy - overview”
Latvia's economy experienced GDP growth of more than 10% per year during 2006-07. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999. EU membership, a top foreign policy goal, came in May 2004. The current account deficit - more than 22% of GDP in 2007 - and inflation - at nearly 10% per year - remain major concerns.
Latvia's economy experienced average GDP growth of more than 7.0% over the past several years. In 2006 it reached 10.2% real GDP growth. 10% per year during 2006-07. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999. EU membership, a top foreign policy goal, came in May 2004. The current account deficit - more than 15% 22% of GDP in 2006 2007 - and inflation - at nearly 10% per year - remain major concerns.
Published as “Economy - overview”
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. The IMF, EU, and other donors provided assistance to Latvia as part of an agreement to defend the currency's peg to the euro and reduce the fiscal deficit to about 5% of GDP. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999. EU membership, a top foreign policy goal, came in May 2004. The current account deficit and inflation remain major concerns.
Latvia's economy experienced GDP growth of more than 10% per year during 2006-07. 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. The IMF, EU, and other donors provided assistance to Latvia as part of an agreement to defend the currency's peg to the euro and reduce the fiscal deficit to about 5% of GDP. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999. EU membership, a top foreign policy goal, came in May 2004. The current account deficit - more than 22% of GDP in 2007 - and inflation - at nearly 10% per year - remain major concerns.
Published as “Economy - overview”
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. GDP plunged 18% in 2009 - the three former Soviet Baltic republics had the world's worst declines that year - and another 1.8% in 2010. The IMF, EU, and other donors provided assistance to Latvia as part of an agreement to defend the currency's peg to the euro and reduce the fiscal deficit to about 5% of GDP over time.
DOMBROVSKIS' government enacted major speding cuts to reduce the fiscal deficit to 7.8% of GDP in 2010, and plans to cut the deficit further in 2011. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999. EU membership, a top foreign policy goal, came in May 2004.
Latvia's economy experienced GDP growth of more than 10% per year during 2006-07; 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. GDP plunged 18% in 2009 - the three former Soviet Baltic republics had the world's worst declines that year - and another 1.8% in 2010. The IMF, EU, and other donors provided assistance to Latvia as part of an agreement to defend the currency's peg to the euro and reduce the fiscal deficit to about 5% of GDP. GDP over time. DOMBROVSKIS' government enacted major speding cuts to reduce the fiscal deficit to 7.8% of GDP in 2010, and plans to cut the deficit further in 2011. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999. EU membership, a top foreign policy goal, came in May 2004. The current account deficit and inflation remain major concerns.
Published as “Economy - overview”
Latvia is a small, open economy with exports contributing significantly to its 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 electronic devices. The bulk of the country's economic activity, however, is in the services sector. Corruption continues to be an impediment to attracting FDI flows 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. GDP plunged 18% in 2009 - the three Baltic states had the world's worst declines that year. Thanks to strong export growth in 2009 and 2010, the economy experienced its first real quarterly GDP growth in over two years (2.9%) in the third quarter of 2010.
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. This agreement calls for reduction of Latvia's fiscal deficit to below 3% of GDP by 2012, in order to meet the Maastricht Treaty criteria for euro adoption. DOMBROVSKIS' government enacted major spending cuts to reduce the fiscal deficit to a maximum of 8.5% of GDP in 2010, and Latvia has approved a 2011 budget with a projected deficit of 5.4% of GDP. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises.
Latvia officially joined the World Trade Organization in February, 1999. EU membership, a top foreign policy goal, came in May 2004. Latvia's current major financial policy goal, entrance into the euro zone, is targeted for 2014.
Latvia is a small, open economy with exports contributing significantly to its 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 electronic devices. The bulk of the country's economic activity, however, is in the services sector. Corruption continues to be an impediment to attracting FDI flows 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 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. GDP plunged 18% in 2009 - the three former Soviet Baltic republics states had the world's worst declines that year - year. Thanks to strong export growth in 2009 and another 1.8% 2010, the economy experienced its first real quarterly GDP growth in over two years (2.9%) in the third quarter of 2010. 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 and reduce the euro. This agreement calls for reduction of Latvia's fiscal deficit to about 5% below 3% of GDP over time. by 2012, in order to meet the Maastricht Treaty criteria for euro adoption. DOMBROVSKIS' government enacted major speding spending cuts to reduce the fiscal deficit to 7.8% a maximum of 8.5% of GDP in 2010, and plans to cut the Latvia has approved a 2011 budget with a projected deficit further in 2011. of 5.4% of GDP. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February February, 1999. EU membership, a top foreign policy goal, came in May 2004. Latvia's current major financial policy goal, entrance into the euro zone, is targeted for 2014.
Published as “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 remained committed to fiscal prudence and reducing the fiscal deficit from 7.7% of GDP in 2010, to 2.7% of GDP in 2012.
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.
Latvia is a small, open economy with exports contributing significantly to its 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 electronic devices. The bulk of the country's economic activity, however, is in the services sector. electronics industries. Corruption continues to be an impediment to attracting FDI flows 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 three Baltic states had the world's worst declines that year. Thanks 2009. The economy has not returned to pre-crisis levels despite strong export growth growth, especially in 2009 and 2010, the economy experienced its first real quarterly GDP growth in over two years (2.9%) export sector in the third quarter of 2010. 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. This agreement calls euro in exchange for reduction of Latvia's fiscal deficit the government's commitment to below 3% of GDP by 2012, stringent austerity measures. The IMF/EU program successfully concluded in order to meet the Maastricht Treaty criteria for euro adoption. DOMBROVSKIS' December 2011. The government enacted major spending cuts of Prime Minister Valdis DOMBROVSKIS remained committed to reduce fiscal prudence and reducing the fiscal deficit to a maximum of 8.5% from 7.7% of GDP in 2010, and Latvia has approved a 2011 budget with a projected deficit of 5.4% to 2.7% of GDP. GDP in 2012. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. enterprises, including 99.8% ownership of the Latvian national airline. Latvia officially joined the World Trade Organization in February, 1999. 1999 and the EU membership, a top foreign policy goal, came in May 2004. Latvia's current major financial policy goal, entrance into Latvia intends to join the euro zone, is targeted for zone in 2014.
Published as “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 remained committed to fiscal prudence and reducing the fiscal deficit from 7.7% of GDP in 2010, to 2.7% of GDP in 2012.
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.
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 currency''s peg to the euro in exchange for the government's government''s commitment to stringent austerity measures. The IMF/EU program successfully concluded in December 2011. The government of Prime Minister Valdis DOMBROVSKIS remained committed to fiscal prudence and reducing the fiscal deficit from 7.7% of GDP in 2010, to 2.7% of GDP in 2012. 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, February 1999 and the EU in May 2004. Latvia intends to join the euro zone in 2014.
Published as “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.
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 currency's peg to the euro in exchange for the government''s government's commitment to stringent austerity measures. The IMF/EU program successfully concluded in December 2011. The government of Prime Minister Valdis DOMBROVSKIS remained remains committed to fiscal prudence and reducing the fiscal deficit from 7.7% of GDP in 2010, to 2.7% of GDP in 2012. 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.
Published as “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 2011-14.
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 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 joined the euro zone in 2014.
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. 2011-14. 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 joined the euro zone in 2014.
Published as “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 2011-14.
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 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 joined the euro zone in 2014.
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 2011-14.
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 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 joined the euro zone in 2014.
Published as “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 18% in 2009. The economy has yet to return to pre-crisis levels in real terms despite strong growth, especially in the export sector. Continued gains in competitiveness and investment will be key to maintaining economic growth, especially in light of unfavorable demographic trends.
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 have 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.
Latvia is a small, open economy with exports contributing nearly a third 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 softening slowing world economy. Triggered by the collapse of the second largest bank, GDP plunged 18% in 2009. The economy has not returned yet to return to pre-crisis levels in real terms despite strong growth, especially in the export sector sector. Continued gains in 2011-14. competitiveness and investment will be key to maintaining economic growth, especially in light of unfavorable demographic trends.
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. 2011, although, the austerity measures have 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 99.8% 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. 2014 and the OECD in 2016.
The same text in 2018 and 2019.
Published as “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.
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.18% by more than 14% in 2009. The 2009 and, despite strong growth since 2011, the economy has yet to took until 2017 return to pre-crisis levels in real terms despite strong growth, especially in terms. Strong investment and consumption, the export sector. 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. 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
Thehave 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.
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.
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.
The same text in 2021 and 2022.
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.
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.
- high-income, EU-member Baltic economy;
- export-driven;
- Russian invasion of Ukraine has caused a temporary labor force surge and impacted growth due to Russian trade reliance;
- highly developed transit services
Rewritten: too little of the 2022 text remains to mark the changes.
high-income, EU-member Baltic economy; export-driven; Russian invasion of Ukraine has caused a temporary labor force surge and impacted growth due to Russian trade reliance; highly developed transit services
- high-income EU and eurozone member;
- economic contraction triggered by export decline and energy shocks;
- recovery driven by easing inflation, wage growth, and investments supported by EU funds;
- challenges from skilled labor shortages, capital market access, large informal sector, and green and digital transitions
Rewritten: too little of the 2023 text remains to mark the changes.
high-income EU and eurozone member; economic contraction triggered by export decline and energy shocks; recovery driven by easing inflation, wage growth, and investments supported by EU funds; challenges from skilled labor shortages, capital market access, large informal sector, and green and digital transitions
- high-income EU and eurozone member;
- weak recovery following economic contraction, with slight increase in private consumption and uncertain trade environment;
- challenges from skilled-labor shortages, capital market access, large informal sector, and green and digital transitions
high-income EU and eurozone member; economic contraction triggered by export decline and energy shocks; weak recovery driven by easing inflation, wage growth, following economic contraction, with slight increase in private consumption and investments supported by EU funds; uncertain trade environment; challenges from skilled labor skilled-labor shortages, capital market access, large informal sector, and green and digital transitions
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Cite this page
Central Intelligence Agency. “Latvia: Economic overview.” The World Factbook, 1992–2025 editions. Archived by The Factbook, thefactbook.org/latvia/economic-overview.