Latvia Economy - 2006

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.

GDP (purchasing power parity):
$29.7 billion (2005 est.)

GDP (official exchange rate):
$14.64 billion (2005 est.)

GDP - real growth rate:
8.3% (2005 est.)

GDP - per capita (PPP):
$13,000 (2005 est.)

GDP - composition by sector:
agriculture: 4.1%
industry: 26%
services: 69.9% (2005 est.)

Labor force:
1.11 million (2005 est.)

Labor force - by occupation:
agriculture: 15%
industry: 25%
services: 60% (2000 est.)

Unemployment rate:
8.8% (2005 est.)

Population below poverty line:
NA%

Household income or consumption by percentage share:
lowest 10%: 2.9%
highest 10%: 25.9% (1998)

Distribution of family income - Gini index:
32 (1999)

Inflation rate (consumer prices):
5.9% (2005 est.)

Investment (gross fixed):
29.9% of GDP (2005 est.)

Budget:
revenues: $5.646 billion
expenditures: $5.889 billion; including capital expenditures of $NA (2005 est.)

Public debt:
12% of GDP (2005 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:
8.5% (2005 est.)

Electricity - production:
3.573 billion kWh (2003)

Electricity - consumption:
5.839 billion kWh (2003)

Electricity - exports:
300 million kWh (2003)

Electricity - imports:
2.816 billion kWh (2003)

Oil - production:
0 bbl/day (2003 est.)

Oil - consumption:
29,000 bbl/day (2003 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Natural gas - production:
NA cu m

Natural gas - consumption:
1.8 billion cu m (2003 est.)

Natural gas - exports:
0 cu m (2001 est.)

Natural gas - imports:
1.7 billion cu m (2001 est.)

Current account balance:
-$1.392 billion (2005 est.)

Exports:
$5.749 billion f.o.b. (2005 est.)

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

Exports - partners:
UK 12.8%, Germany 12%, Sweden 10%, Lithuania 9.1%, Estonia 8%, Russia 6.4%, Denmark 5.4% (2004)

Imports:
$8.559 billion f.o.b. (2005 est.)

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

Imports - partners:
Germany 13.9%, Lithuania 12.2%, Russia 8.7%, Estonia 7%, Finland 6.3%, Sweden 6.1%, Poland 5.4%, Belarus 4.8% (2004)

Reserves of foreign exchange and gold:
$2.2 billion (2005 est.)

Debt - external:
$13.2 billion (30 June 2005 est.)

Economic aid - recipient:
$96.2 million (1995)

Currency (code):
Latvian lat (LVL)

Exchange rates:
lati per US dollar - 0.5647 (2005), 0.5402 (2004), 0.5715 (2003), 0.6182 (2002), 0.6279 (2001)