Economy adversely affected by geopolitical events
A2
MEDIUM RISK for enterprise
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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Financing risk
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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Financing risk
Last updated in December 2022.
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GDP | USD39bn (World ranking 96, World Bank 2021) |
Population | 1.90mn (World ranking 149, World Bank 2021) |
Form of state |
Parliamentary republic |
Head of government | Krisjanis KARINS (Prime Minister) |
Next elections | 2026, legislative |

- Low systemic political risk
- Good international relations, except with Russia
- Competitive business environment
- Eurozone membership provides for low transfer and convertibility risk
- Adequate public finances and access to international capital markets

- Small industrial base
- Low R&D spending (0.6% of GDP in 2018) relative to OECD average (2.4% of GDP in 2018)
- Unfavorable export structure, largely dependent on Russia (prior to the war in Ukraine) and other Baltic States
- Banking sector remains vulnerable due to the high level of (volatile) non-resident deposits
- Regional inequalities and mismatch in labor markets (between workers and jobs)
Trade structure by destination/origin
(% of total, 2021)
Exports | Rank | Imports |
---|---|---|
Lithuania
17.8%
![]() |
1 |
![]() |
Estonia
10.6%
![]() |
2 |
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United Kingdom
7.7%
![]() |
3 |
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Germany
7.3%
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4 |
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Russian Federation
7.3%
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5 |
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Trade structure by product
(% of total, 2021)
Exports | Rank | Imports |
---|---|---|
Cork and wood
12.3%
|
1 |
6.2%
Road vehicles
|
Cork and wood manufactures (excluding furniture)
6.5%
|
2 |
5.4%
Eletrical machinery, apparatus and appliances, n.e.s
|
Telecommunication and sound recording apparatus
6.2%
|
3 |
5.0%
Iron steel
|
Cereals and cereal preparations
4.6%
|
4 |
4.9%
Telecommunication and sound recording apparatus
|
Road vehicles
4.2%
|
5 |
4.4%
Petroleum, petroleum products and related materials
|
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