Economy of Latvia

Economy of Latvia

Riga, Old town
Currency	Euro (EUR)
Fiscal year	Calendar year
Trade organisations	EU and WTO
Statistics
GDP	$48 billion (PPP, 2014 est.)
GDP rank	97th (nominal) / 105th (PPP)
GDP growth	4.6% (Real, 2013 est.)
GDP per capita	$13,729 (nominal, 2015 est.) $25,195 (PPP, 2015 est.)
GDP by sector	agriculture: 4.4%; industry: 26.3%; services: 69.3% (2012 est.)
Inflation (CPI)	0,6% (CPI, 2014)
Gini coefficient	35.2 (2013)
Labour force	0.9 million(2014)
Labour force by occupation	agriculture: 8.8%; industry: 24.0%; services: 67.2% (2010 est.)
Unemployment	9.1% (February 2015)
Average gross salary	€11,000/$12,000 , yearly (2015)
Average net salary	€8,000/$9,000 , yearly (2015)
Main industries	processed foods, processed wood products, textiles, processed metals, pharmaceuticals, railroad cars, synthetic fibers, electronics
Ease-of-doing-business rank	14th (2017)
External
Exports	$ 13.4 billion (2014 est.)
Export goods	foodstuffs, wood and wood products, metals, machinery and equipment, textiles
Main export partners	Lithuania 17.7%  Russia 14.7%  Estonia 11.2%  Germany 6.6%  Poland 6.2%  Sweden 5.1%  UK 4.7% (2014 est.)
Imports	$16.7 billion (2014 est.)
Import goods	machinery and equipment, consumer goods, chemicals, fuels, vehicles
Main import partners	Lithuania 17%  Germany 11.7%  Poland 10.9%  Estonia 7.7%  Russia 7.7%  Finland 5.8%  Italy 4.1% (2014 est.)
FDI stock	$13 billion (31 December 2012 est.)
Gross external debt	$35 billion (31 December 2012 est.)
Public finances
Public debt	35.0% of GDP (2015 est.)
Revenues	€7.3 billion(2015 est.)
Expenses	€7.5 billion(2015 est.)
Economic aid	recipient: $0.1 billion (1995)
Credit rating	Standard & Poor's: A- (Domestic) A- (Foreign) AAA (T&C Assessment) Outlook: Stable Moody's: Baa3 Outlook: Positive Fitch: BBB Outlook: Positive
Foreign reserves	$9 billion (April 2011)
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars.

$13,729 (nominal, 2015 est.)

The economy of Latvia is an open economy in Northern Europe and is part of the European Union's (EU) single market. Latvia is a member of the World Trade Organization (WTO) since 1999, a member of the European Union since 2004, a member of the Eurozone since 2014 and a member of the OECD since 2016. Latvia is ranked the 21st in the world by the Ease of Doing Business Index prepared by the World Bank Group, According to the Human Development Report 2011, Latvia belongs to the group of very high human development countries. 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 electronic devices.

Latvia's economy has had rapid GDP growth of more than 10% per year during 2006–07, but entered a severe recession in 2009 as a result of an unsustainable current account deficit, collapse of the real estate market, and large debt exposure amid the softening world economy. Triggered by the collapse of Parex Bank, the second largest bank, GDP decreased by almost 18% in 2009, and the European Union, the International Monetary Fund, 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. In 2011 Latvia achieved GDP growth by 5.5% and thus Latvia again was among the fastest growing economies in the European Union. The IMF/EU program successfully concluded in December 2011.