Currency | Euro (EUR, €) |
---|---|
Calendar year | |
Trade organisations | EU, OECD and WTO |
Country group | |
Statistics | |
Population | 1,861,900 (2024)[3] |
GDP | |
GDP rank | |
GDP growth | |
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
Population below poverty line | |
34.0 medium (2023)[10] | |
60 out of 100 points (2023)[12] (36th) | |
Labour force | |
Labour force by occupation |
|
Unemployment | |
Average gross salary | €1,623 monthly (May, 2024) |
€1,180 monthly (May, 2024) | |
Main industries | processed foods, processed wood products, textiles, processed metals, pharmaceuticals, railroad cars, synthetic fibers, electronics |
External | |
Exports | $20.73 billion (2023)[17] |
Export goods | foodstuffs, wood and wood products, metals, machinery and equipment, textiles |
Main export partners | |
Imports | $25.49 billion (2023)[18] |
Import goods | machinery and equipment, consumer goods, chemicals, fuels, vehicles |
Main import partners | |
FDI stock | |
−$1.732 billion (2024)[20] | |
Gross external debt | $40.83 billion (April 2024)[21] |
Public finances | |
Revenues | 37.8% of GDP (2024)[25] |
Expenses | 40.8% of GDP (2024)[26] |
Economic aid |
|
$4.46 billion (2022 est.)[7] | |
All values, unless otherwise stated, are in US dollars. |
The economy of Latvia is an open economy in Europe and is part of the European Single Market. Latvia is a member of the World Trade Organization (WTO) since 1999,[34] a member of the European Union since 2004, a member of the Eurozone since 2014 and a member of the OECD since 2016.[35] Latvia is ranked the 14th in the world by the Ease of Doing Business Index prepared by the World Bank Group.[36] According to the Human Development Report 2023/24 by the United Nations Development Programme, has a HDI score of a 0.879 (2022 data).[37] 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.
Latvia's economy has had rapid GDP growth of more than 10% per year during 2006–07, but entered a severe recession in 2009 as a result of an unsustainable current account deficit, collapse of the real estate market, and large debt exposure amid the softening world economy. Triggered by the collapse of Parex Bank, the second largest bank, GDP decreased by almost 18% in 2009,[38] and the European Union, the International Monetary Fund, 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. In 2011 Latvia achieved GDP growth by 5.5%[39] and thus Latvia again was among the fastest growing economies in the European Union. The IMF/EU program successfully concluded in December 2011.[40]
Privatization is mostly complete, except for some of the large state-owned utilities. Export growth contributed to the economic recovery, however, the bulk of the country's economic activity is in the services sector.
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