unbekannter Gast

Latvia: Economy#

Latvia is a small, open economy with exports contributing nearly a third 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 softening world economy. Triggered by the collapse of the second largest bank, GDP plunged 18% in 2009. The economy has not returned to pre-crisis levels despite strong growth, especially in the export sector in 2011-12. 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. The government of Prime Minister Valdis DOMBROVSKIS remains committed to fiscal prudence and reducing the fiscal deficit. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises, including 99.8% ownership of the Latvian national airline. Latvia officially joined the World Trade Organization in February 1999 and the EU in May 2004. Latvia intends to join the euro zone in 2014.

Economic Facts#

GDP (purchasing power parity)$38.87 billion (2013 est.)
$37.38 billion (2012 est.)
$35.4 billion (2011 est.)
note: data are in 2013 US dollars
GDP - real growth rate4% (2013 est.)
5.6% (2012 est.)
5.5% (2011 est.)
GDP - per capita (PPP)$19,100 (2013 est.)
$18,300 (2012 est.)
$17,100 (2011 est.)
note: data are in 2013 US dollars
GDP - composition, by sector of originagriculture: 4.9%
industry: 25.7%
services: 69.4% (2013 est.)
Population below poverty lineNA%
Household income or consumption by percentage sharelowest 10%: 2.7%
highest 10%: 27.6% (2008)
Labor force - by occupationagriculture: 8.8%
industry: 24%
services: 67.2% (2010 est.)
Exports - commoditiesfood products, wood and wood products, metals, machinery and equipment, textiles
Exports - partnersRussia 18.2%, Lithuania 14.9%, Estonia 12.1%, Germany 7.5%, Poland 5.6%, Sweden 4.8% (2012)
Agriculture - productsgrain, rapeseed, potatoes, vegetables; pork, poultry, milk, eggs; fish
Budgetrevenues: $10.9 billion
expenditures: $10.95 billion (2013 est.)
Imports - commoditiesmachinery and equipment, consumer goods, chemicals, fuels, vehicles
Imports - partnersLithuania 19.1%, Germany 11.6%, Russia 9.2%, Poland 8.2%, Estonia 7.6%, Italy 4.6%, Finland 4.4% (2012)
Exchange rateslati (LVL) per US dollar -
0.5313 (2013 est.)
0.5469 (2012 est.)
0.5305 (2010 est.)
0.5056 (2009)
0.4701 (2008)
note: Latvia joined the EMU and adopted the euro as its currency on 1 January 2014
Exports$12.67 billion (2013 est.)
$12.23 billion (2012 est.)
Debt - external$39.87 billion (31 December 2013 est.)
$39.43 billion (31 December 2012 est.)
Fiscal yearcalendar year
Imports$15.56 billion (2013 est.)
$15.15 billion (2012 est.)
Industrial production growth rate4.2% (2013 est.)
Industriesprocessed foods, processed wood products, textiles, processed metals, pharmaceuticals, railroad cars, synthetic fibers, electronics
Inflation rate (consumer prices)0.2% (2013 est.)
2.3% (2012 est.)
Labor force1.022 million (2013 est.)
Unemployment rate9.8% (2013 est.)
11.4% (2012 est.)
Distribution of family income - Gini index35.2 (2010)
32 (1999)
Public debt39.2% of GDP (2013 est.)
40.7% of GDP (2012 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
Current account balance-$613.9 million (2013 est.)
-$473.4 million (2012 est.)
Reserves of foreign exchange and gold$7.22 billion (31 December 2013 est.)
$7.523 billion (31 December 2012 est.)
GDP (official exchange rate)$30.38 billion (2013 est.)
Stock of direct foreign investment - at home$15.49 billion (31 December 2013 est.)
$14.14 billion (31 December 2012 est.)
Stock of direct foreign investment - abroad$2.212 billion (31 December 2013 est.)
$1.992 billion (31 December 2012 est.)
Market value of publicly traded shares$1.115 billion (31 December 2012 est.)
$1.076 billion (31 December 2011)
$1.252 billion (31 December 2010 est.)
Central bank discount rate3.5% (31 December 2011 est.)
3.5% (31 December 2010 est.)
Commercial bank prime lending rate5% (31 December 2013 est.)
5.52% (31 December 2012 est.)
Stock of domestic credit$17.39 billion (31 December 2013 est.)
$18.39 billion (31 December 2012 est.)
Stock of narrow money$9.865 billion (31 December 2013 est.)
$9.099 billion (31 December 2012 est.)
Stock of broad money$12.57 billion (31 December 2013 est.)
$12.63 billion (31 December 2012 est.)
Taxes and other revenues35.9% of GDP (2013 est.)
Budget surplus (+) or deficit (-)-0.2% of GDP (2013 est.)
GDP - composition, by end usehousehold consumption: 62.4%
government consumption: 15%
investment in fixed capital: 22.5%
investment in inventories: 2.8%
exports of goods and services: 61.3%
imports of goods and services: -63.9%
(2013 est.)
Gross national saving23.2% of GDP (2013 est.)
24.6% of GDP (2012 est.)
22.7% of GDP (2011 est.)