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): 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:
$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
$30.18 billion (2016 est.)
[see also: GDP (official exchange rate) country ranks ]
3.8% (2017 est.)
2% (2016 est.)
2.7% (2015 est.)
country comparison to the world: 81
[see also: GDP - real growth rate country ranks ]
$27,300 (2017 est.)
$26,100 (2016 est.)
$25,400 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 73
20.9% of GDP (2017 est.)
21.4% of GDP (2016 est.)
21.3% of GDP (2015 est.)
country comparison to the world: 83
[see also: Gross national saving country ranks ]
household consumption: 63.1%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 17.8%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 19.7%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 60.3%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -61% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]
agriculture: 3.2%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 21.6%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 75.2% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]
grain, rapeseed, potatoes, vegetables; pork, poultry, milk, eggs; fish
processed foods, processed wood products, textiles, processed metals, pharmaceuticals, railroad cars, synthetic fibers, electronics
2.4% (2017 est.)
country comparison to the world: 119
[see also: Industrial production growth rate country ranks ]
990,000 (2017 est.)
country comparison to the world: 144
[see also: Labor force country ranks ]
agriculture: 7.7%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 24.1%
[see also: Labor force - by occupation - industry country ranks ]
services: 68.1% (2016 est.)
[see also: Labor force - by occupation - services country ranks ]
9% (2017 est.)
9.6% (2016 est.)
country comparison to the world: 123
[see also: Unemployment rate country ranks ]
25.5% (2015)
[see also: Population below poverty line country ranks ]
lowest 10%: 2.2%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 26.3% (2015)
34.5 (2015)
35.4 (2014)
country comparison to the world: 97
[see also: Distribution of family income - Gini index country ranks ]
revenues: $10.13 billion
[see also: Budget - revenues country ranks ]
expenditures: $10.43 billion (2017 est.)
[see also: Budget - expenditures country ranks ]
33.6% of GDP (2017 est.)
country comparison to the world: 63
[see also: Taxes and other revenues country ranks ]
-1% of GDP (2017 est.)
country comparison to the world: 59
[see also: Budget surplus (+) or deficit (-) country ranks ]
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: 139
[see also: Public debt country ranks ]
calendar year
3% (2017 est.)
0.1% (2016 est.)
country comparison to the world: 129
[see also: Inflation rate (consumer prices) country ranks ]
0% (31 December 2016 est.)
0.05% (31 December 2015 est.)
country comparison to the world: 156
[see also: Central bank discount rate country ranks ]
4.6% (31 December 2017 est.)
4.5% (31 December 2016 est.)
country comparison to the world: 149
[see also: Commercial bank prime lending rate country ranks ]
$12.77 billion (31 December 2017 est.)
$10.71 billion (31 December 2016 est.)
country comparison to the world: 79
[see also: Stock of narrow money country ranks ]
$15.25 billion (31 December 2017 est.)
$12.97 billion (31 December 2016 est.)
country comparison to the world: 98
[see also: Stock of broad money country ranks ]
$17.12 billion (31 December 2017 est.)
$15.11 billion (31 December 2016 est.)
country comparison to the world: 94
[see also: Stock of domestic credit country ranks ]
$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
[see also: Market value of publicly traded shares country ranks ]
-$100 million (2017 est.)
$409 million (2016 est.)
country comparison to the world: 80
[see also: Current account balance country ranks ]
$12.34 billion (2017 est.)
$11.35 billion (2016 est.)
country comparison to the world: 81
[see also: Exports country ranks ]
foodstuffs, wood and wood products, metals, machinery and equipment, textiles
Lithuania 17.3%, Estonia 11.5%, Russia 11.4%, Germany 6.8%, Sweden 5.7%, UK 5.3%, Poland 5%, Denmark 4.4% (2016)
$15.13 billion (2017 est.)
$13.28 billion (2016 est.)
country comparison to the world: 86
[see also: Imports country ranks ]
machinery and equipment, consumer goods, chemicals, fuels, vehicles
Lithuania 16.9%, Germany 12.3%, Poland 10.4%, Estonia 7.9%, Russia 7.4%, Finland 4.3%, Netherlands 4.3% (2016)
$3.595 billion (31 December 2017 est.)
$3.514 billion (31 December 2016 est.)
country comparison to the world: 100
[see also: Reserves of foreign exchange and gold country ranks ]
$40.02 billion (31 March 2016 est.)
$38.19 billion (31 March 2015 est.)
country comparison to the world: 71
[see also: Debt - external country ranks ]
$16.22 billion (31 December 2017 est.)
$15.36 billion (31 December 2016 est.)
country comparison to the world: 86
[see also: Stock of direct foreign investment - at home country ranks ]
$2.755 billion (31 December 2017 est.)
$2.485 billion (31 December 2016 est.)
country comparison to the world: 78
[see also: Stock of direct foreign investment - abroad country ranks ]
lati (LVL) per US dollar -
0.906 (2017 est.)
0.9037 (2016 est.)
0.9037 (2015 est.)
0.9012 (2014 est.)
0.7525 (2013 est.)