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):
$54.02 billion (2017 est.)
$51.67 billion (2016 est.)
$50.55 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 108
[see also: GDP country ranks ]

GDP (official exchange rate):
$30.33 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
4.5% (2017 est.)
2.2% (2016 est.)
3% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 64
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$27,700 (2017 est.)
$26,200 (2016 est.)
$25,500 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 76
[see also: GDP - per capita country ranks ]

Gross national saving:
20.7% of GDP (2017 est.)
21% of GDP (2016 est.)
21.8% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 91
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 61.8% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 18.2% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 19.9% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 1.5% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 60.6% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -61.9% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 3.9% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 22.4% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 73.7% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
grain, rapeseed, potatoes, vegetables; pork, poultry, milk, eggs; fish

Industries:
processed foods, processed wood products, textiles, processed metals, pharmaceuticals, railroad cars, synthetic fibers, electronics

Industrial production growth rate:
10.6% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 12
[see also: Industrial production growth rate country ranks ]

Labor force:
990,000 (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 144
[see also: Labor force country ranks ]

Labor force - by occupation:
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 ]

Unemployment rate:
8.7% (2017 est.)
9.6% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 124
[see also: Unemployment rate country ranks ]

Population below poverty line:
25.5% (2015)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 2.2%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 26.3% (2015)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
34.5 (2015)
35.4 (2014)
country comparison to the world (CIA rank, may be based on non-current data): 102
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 11.39 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 11.53 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
37.5% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 54
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-0.5% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 62
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
36.3% of GDP (2017 est.)
37.4% 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 (CIA rank, may be based on non-current data): 147
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
2.9% (2017 est.)
0.1% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 130
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
0% (31 December 2017 est.)
0.05% (31 December 2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 155
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
2.58% (31 December 2017 est.)
2.61% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 181
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$12.91 billion (31 December 2017 est.)
$10.71 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 78
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$12.91 billion (31 December 2017 est.)
$10.71 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 79
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$17.27 billion (31 December 2017 est.)
$15.11 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 94
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$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 (CIA rank, may be based on non-current data): 80
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$231 million (2017 est.)
$378 million (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 99
[see also: Current account balance country ranks ]

Exports:
$12.84 billion (2017 est.)
$11.35 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 81
[see also: Exports country ranks ]

Exports - partners:
Lithuania 15.8%, Russia 14%, Estonia 10.9%, Germany 6.9%, Sweden 5.7%, UK 4.9%, Poland 4.3%, Denmark 4.1% (2017)

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

Imports:
$15.79 billion (2017 est.)
$13.61 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 86
[see also: Imports country ranks ]

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

Imports - partners:
Lithuania 17.6%, Germany 11.7%, Poland 8.7%, Estonia 7.6%, Russia 7.1%, Netherlands 4.2%, Finland 4.2%, Italy 4% (2017)

Reserves of foreign exchange and gold:
$4.614 billion (31 December 2017 est.)
$3.514 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 97
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$40.02 billion (31 March 2016 est.)
$38.19 billion (31 March 2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 74
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$18.84 billion (31 December 2017 est.)
$15.36 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 82
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$3.402 billion (31 December 2017 est.)
$2.485 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 80
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
euros (EUR) per US dollar -
0.885 (2017 est.)
0.903 (2016 est.)
0.9214 (2015 est.)
0.885 (2014 est.)
0.7634 (2013 est.)