Modest recovery in 2024
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 January 2024.
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GDP | USD41bn (World ranking 98, World Bank 2022) |
Population | 1.90mn (World ranking 150, World Bank 2022) |
Form of state |
Parliamentary republic |
Head of government | Evika Silina (Prime Minister) |
Next elections | 2026, legislative |
Strengths & Weaknesses
![Strenghts](/en_global/economic-research/country-reports/Latvia/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co/grid-0-par/wrapper_copy_copy/wrapper/image.img.82.3360.png/1720687529774/plus.png)
- Low systemic political risk
- Good international relations (except with Russia), EU and NATO membership
- Competitive business environment
- Eurozone membership provides for low transfer and convertibility risk
- Adequate public finances and access to international capital markets
![Weaknesses](/en_global/economic-research/country-reports/Latvia/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co/grid-1-par/wrapper_copy/wrapper/image.img.82.3360.png/1720687542983/minus.png)
- Small industrial base
- 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)
Economic Overview
Trade structure by destination/origin
(% of total, 2022)
Exports | Rank | Imports |
---|---|---|
Lithuania
18.9%
![]() |
1 |
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Estonia
10.5%
![]() |
2 |
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Germany
6.3%
![]() |
3 |
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Russian Federation
5.9%
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4 |
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Sweden
5.6%
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5 |
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Trade structure by product
(% of total, 2022)
Exports | Rank | Imports |
---|---|---|
Cork and wood
11.4%
|
1 |
9.3%
Gas, natural and manufactured
|
Cork and wood manufactures (excluding furniture)
5.8%
|
2 |
6.6%
Petroleum, petroleum products and related materials
|
Cereals and cereal preparations
5.6%
|
3 |
5.6%
Electric current
|
Telecommunication and sound recording apparatus
4.8%
|
4 |
5.5%
Road vehicles
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Gas, natural and manufactured
4.0%
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5 |
4.6%
Telecommunication and sound recording apparatus
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