Latvia Economy - 2024

Economic overview

high-income, EU-member Baltic economy; export-driven; Russian invasion of Ukraine has caused a temporary labor force surge and impacted growth due to Russian trade reliance; highly developed transit services

Real GDP (purchasing power parity)

$60.457 billion (2021 est.)
$58.094 billion (2020 est.)
$59.403 billion (2019 est.)

note: data are in 2017 dollars

Real GDP growth rate

4.07% (2021 est.)
-2.2% (2020 est.)
2.57% (2019 est.)

Real GDP per capita

$32,100 (2021 est.)
$30,600 (2020 est.)
$31,000 (2019 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$34.084 billion (2019 est.)

Inflation rate (consumer prices)

3.28% (2021 est.)
0.22% (2020 est.)
2.81% (2019 est.)

Credit ratings

Fitch rating: A- (2014)

Moody's rating: A3 (2015)

Standard & Poors rating: A+ (2020)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 3.9% (2017 est.)

industry: 22.4% (2017 est.)

services: 73.7% (2017 est.)

GDP - composition, by end use

household consumption: 61.8% (2017 est.)

government consumption: 18.2% (2017 est.)

investment in fixed capital: 19.9% (2017 est.)

investment in inventories: 1.5% (2017 est.)

exports of goods and services: 60.6% (2017 est.)

imports of goods and services: -61.9% (2017 est.)

Agricultural products

wheat, milk, rapeseed, barley, oats, potatoes, rye, beans, pork, poultry

Industries

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

Industrial production growth rate

1.93% (2021 est.)

Labor force

955,000 (2021 est.)

Unemployment rate

7.6% (2021 est.)
8.1% (2020 est.)
6.31% (2019 est.)

Youth unemployment rate (ages 15-24)

total: 15.5% (2021 est.)

male: 12%

female: 19.6%

Population below poverty line

22.9% (2018 est.)

Gini Index coefficient - distribution of family income

34.5 (2019 est.)

Average household expenditures

on food: 17.3% of household expenditures (2018 est.)

on alcohol and tobacco: 7.9% of household expenditures (2018 est.)

Household income or consumption by percentage share

lowest 10%: 2.2%

highest 10%: 26.3% (2015)

Remittances

3.31% of GDP (2021 est.)
3.15% of GDP (2020 est.)
3.33% of GDP (2019 est.)

Budget

revenues: $12.931 billion (2020 est.)

expenditures: $14.242 billion (2020 est.)

Budget surplus (+) or deficit (-)

-0.5% (of GDP) (2017 est.)

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

Taxes and other revenues

21.77% (of GDP) (2020 est.)

Fiscal year

calendar year

Current account balance

-$1.7 billion (2021 est.)
$918.67 million (2020 est.)
-$200.203 million (2019 est.)

Exports

$25.248 billion (2021 est.) note: data are in current year dollars
$20.768 billion (2020 est.) note: data are in current year dollars
$20.539 billion (2019 est.) note: data are in current year dollars

Exports - partners

Lithuania 17%, Estonia 9%, United Kingdom 8%, Germany 7%, Russia 7% (2021)

Exports - commodities

lumber, wheat, broadcasting equipment, packaged medicines, fuel woods, hard liquors (2021)

Imports

$26.622 billion (2021 est.) note: data are in current year dollars
$20.427 billion (2020 est.) note: data are in current year dollars
$20.765 billion (2019 est.) note: data are in current year dollars

Imports - partners

Lithuania 15%, Russia 14%, Germany 9%, Poland 8%, Estonia 8% (2021)

Imports - commodities

refined petroleum, packaged medicines, broadcasting equipment, electricity, cars, natural gas (2021)

Reserves of foreign exchange and gold

$5.491 billion (31 December 2021 est.)
$5.29 billion (31 December 2020 est.)
$4.48 billion (31 December 2019 est.)

Debt - external

$40.164 billion (2019 est.)
$42.488 billion (2018 est.)

Exchange rates

euros (EUR) per US dollar -

Exchange rates:
0.845 (2021 est.)
0.876 (2020 est.)
0.893 (2019 est.)
0.847 (2018 est.)
0.885 (2017 est.)