Latvia Economy Profile 2008

Economy - overview

Latvia's economy experienced GDP growth of more than 10% per year during 2006-07. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999. EU membership, a top foreign policy goal, came in May 2004. The current account deficit - more than 22% of GDP in 2007 - and inflation - at nearly 10% per year - remain major concerns.

GDP (purchasing power parity)

$40.04 billion (2007 est.)

GDP (official exchange rate)

$27 billion (2007 est.)

GDP - real growth rate

10.3% (2007 est.)

GDP - per capita (PPP)

$17,700 (2007 est.)

GDP - composition by sector

agriculture: 3.5%
industry: 21.3%
services: 75.2% (2007 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: 2.5%
highest 10%: 29.1% (2003)

Inflation rate (consumer prices)

9.6% (2007 est.)

Investment (gross fixed)

35.8% of GDP (2007 est.)

Labor force

1.136 million (2006 est.)

Labor force - by occupation

agriculture: 13%
industry: 19%
services: 68% (2005 est.)

Unemployment rate

5.9% (2007 est.)

Distribution of family income - Gini index

37.7 (2003)

Budget

revenues: $8.975 billion
expenditures: $8.88 billion (2007 est.)

Public debt

8.8% of GDP (2007 est.)

Industries

buses, vans, street and railroad cars; synthetic fibers, agricultural machinery, fertilizers, washing machines, radios, electronics, pharmaceuticals, processed foods, textiles; note - dependent on imports for energy and raw materials

Industrial production growth rate

5.9% (2007 est.)

Electricity - production

4.778 billion kWh (2005)

Electricity - consumption

6.09 billion kWh (2005)

Electricity - exports

707 million kWh (2005)

Electricity - imports

2.855 billion kWh (2005)

Oil - production

0 bbl/day (2005 est.)

Oil - consumption

34,000 bbl/day (2005 est.)

Oil - imports

39,190 bbl/day (2004)

Oil - exports

6,765 bbl/day (2004)

Oil - proved reserves

0 bbl (1 January 2006 est.)

Natural gas - production

0 cu m (2005 est.)

Natural gas - consumption

1.861 billion cu m (2005 est.)

Natural gas - exports

0 cu m (2005 est.)

Natural gas - imports

1.861 billion cu m (2005)

Current Account Balance

-$5.839 billion (2007 est.)

Agriculture - products

grain, sugar beets, potatoes, vegetables; beef, pork, milk, eggs; fish

Exports

$7.551 billion f.o.b. (2007 est.)

Exports - commodities

wood and wood products, machinery and equipment, metals, textiles, foodstuffs

Exports - partners

Lithuania 14.2%, Estonia 12.3%, Russia 11.5%, Germany 9.8%, UK 7.6%, Sweden 6.3%, Denmark 4.8% (2006)

Imports

$13.7 billion f.o.b. (2007 est.)

Imports - commodities

machinery and equipment, chemicals, fuels, vehicles

Imports - partners

Germany 15.5%, Lithuania 12.9%, Russia 8%, Estonia 7.7%, Poland 7.2%, Finland 5.7%, Sweden 5%, Belarus 4.7% (2006)

Reserves of foreign exchange and gold

$5.16 billion (31 December 2007 est.)

Debt - external

$29.85 billion (30 June 2007)

Stock of direct foreign investment - at home

$6.418 billion (2006 est.)

Stock of direct foreign investment - abroad

$442 million (2006 est.)

Market value of publicly traded shares

$2.705 billion (2006)

Economic aid - recipient

$162 million (2004)

Currency (code)

lat (LVL)

Exchange rates

lati per US dollar - 0.5162 (2007), 0.5597 (2006), 0.5647 (2005), 0.5402 (2004), 0.5715 (2003)

Fiscal year

calendar year