Latvia Economy 2008

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.

GDP (purchasing power parity):
$40.04 billion (2007 est.)

GDP (official exchange rate):
$18.62 billion (2007 est.)

GDP - real growth rate:
10.3% (2007 est.)

GDP - per capita (PPP):
$17,700 (2007 est.)

GDP - composition by sector:
agriculture: 3.5%
industry: 21.3%
services: 75.2% (2007 est.)

Labor force:
1.136 million (2006 est.)

Labor force - by occupation:
agriculture: 13%
industry: 19%
services: 68% (2005 est.)

Unemployment rate:
5.9% (2007 est.)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: 2.5%
highest 10%: 29.1% (2003)

Distribution of family income - Gini index:
37.7 (2003)

Inflation rate (consumer prices):
9.6% (2007 est.)

Investment (gross fixed):
35.8% of GDP (2007 est.)

Budget:
revenues: $8.975 billion
expenditures: $8.88 billion (2007 est.)

Public debt:
8.8% of GDP (2007 est.)

Agriculture - products:
grain, sugar beets, potatoes, vegetables; beef, pork, milk, eggs; fish

Industries:
buses, vans, street and railroad cars; synthetic fibers, agricultural machinery, fertilizers, washing machines, radios, electronics, pharmaceuticals, processed foods, textiles; note - dependent on imports for energy and raw materials

Industrial production growth rate:
5.9% (2007 est.)

Electricity - production:
4.778 billion kWh (2005)

Electricity - consumption:
6.09 billion kWh (2005)

Electricity - exports:
707 million kWh (2005)

Electricity - imports:
2.855 billion kWh (2005)

Oil - production:
0 bbl/day (2005 est.)

Oil - consumption:
34,000 bbl/day (2005 est.)

Oil - exports:
6,765 bbl/day (2004)

Oil - imports:
39,190 bbl/day (2004)

Oil - proved reserves:
0 bbl (1 January 2006 est.)

natural gas - production:
0 cu m (2005 est.)

natural gas - consumption:
1.861 billion cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
1.861 billion cu m (2005)

Current account balance:
-$5.839 billion (2007 est.)

Exports:
$7.551 billion f.o.b. (2007 est.)

Exports - commodities:
wood and wood products, machinery and equipment, metals, textiles, foodstuffs

Exports - partners:
Lithuania 14.2%, Estonia 12.3%, Russia 11.5%, Germany 9.8%, UK 7.6%, Sweden 6.3%, Denmark 4.8% (2006)

Imports:
$13.7 billion f.o.b. (2007 est.)

Imports - partners:
Germany 15.5%, Lithuania 12.9%, Russia 8%, Estonia 7.7%, Poland 7.2%, Finland 5.7%, Sweden 5%, Belarus 4.7% (2006)

Economic aid - recipient:
$162 million (2004)

Reserves of foreign exchange and gold:
$5.16 billion (31 December 2007 est.)

Debt - external:
$29.85 billion (30 June 2007)

Stock of direct foreign investment - at home:
$6.418 billion (2006 est.)

Stock of direct foreign investment - abroad:
$442 million (2006 est.)

Market value of publicly traded shares:
$2.705 billion (2006)

Currency (code):
Latvian lat (LVL)

Exchange rates:
lati per US dollar - 0.5162 (2007), 0.5597 (2006), 0.5647 (2005), 0.5402 (2004), 0.5715 (2003)