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The Economy of Latvia

Latvian Economy

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Economy - overview: Latvia's economy experienced GDP growth of more than 10% per year during 2006-07; but entered a recession as a result of 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 a package to defend the currency's peg to the euro and reduce public spending by 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.

GDP:

GDP - real growth rate: -5% (2008 est.) 10.3% (2007 est.) 12.2% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 3.3% industry: 22.3% services: 74.4% (2008 est.)

Population below poverty line:

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

Distribution of family income - Gini index: 36 (2005)

Inflation rate (consumer prices):

Labor force: 1.169 million (2008 est.)

Labor force - by occupation: agriculture: 12.1% industry: 25.8% services: 61.8% (2005 est.)

Unemployment rate: 5.5% (2008 est.)

Budget: revenues: $12.33 billion expenditures: $12.84 billion (2008 est.)

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: -3.2% (2008 est.)

Electricity - production: 4.734 billion kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 6.424 billion kWh (2006 est.)

Electricity - exports: 1.676 billion kWh (2007 est.)

Electricity - imports: 4.671 billion kWh (2007 est.)

Oil - production: 0 bbl/day (2007 est.)

Oil - consumption: 35,180 bbl/day (2006 est.)

Oil - exports: 10,070 bbl/day (2005)

Oil - imports: 45,340 bbl/day (2005)

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

Natural gas - production: 0 cu m (2007 est.)

Natural gas - consumption: 2.04 billion cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 2.04 billion cu m (2007 est.)

Natural gas - proved reserves:

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

Exports: $8.364 billion f.o.b. (2008 est.)

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

Exports - partners: Lithuania 15.1%, Estonia 13.8%, Russia 13%, Germany 8.3%, Sweden 7.4%, UK 6.5% (2007)

Imports: $14.19 billion f.o.b. (2008 est.)

Imports - commodities: machinery and equipment, chemicals, fuels, vehicles

Imports - partners: Germany 15.1%, Lithuania 13.8%, Russia 8.7%, Estonia 8%, Poland 6.9%, Finland 5.1%, Sweden 4.9% (2007)

Debt - external: $43.9 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: lati (LVL) per US dollar - 0.4701 (2008 est.), 0.5162 (2007), 0.5597 (2006), 0.5647 (2005), 0.5402 (2004)

Fiscal year: