Latvia
Modest recovery in 2024
Last update – January 2024
Country rating
MEDIUM RISK FOR ENTERPRISE
Economic risk
Business environment risk
Political risk
Commercial risk
Financing risk
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GDP | USD41.2bn (World ranking 98, World Bank 2022) |
Population | 1.9mn (World ranking 150, World Bank 2022) |
Form of state |
Parliamentary republic |
Head of government |
Evika SILINA (Prime Minister) |
Next elections |
2026, legislative |
Strengths & weaknesses
- 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
- 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)
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Exports | Rank | Imports | ||
Lithuania 18.9% | 1 |
21.6% Lithuania |
||
Estonia 10.5% | 2 |
10.2% Estionia |
||
Germany 6.3% | 3 | 10.2% Russian Federation | ||
Russian Federation 5.9% | 4 |
9.0% Germany |
||
Sweden 5.6% | 5 |
8.6% Poland |
Trade structure by product
(% of total, 2022)
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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 |
Gas, natural and manufactured 4.0% |
5 |
4.6% Telecommunication and sound recording apparatus |
Contact
Manfred Stamer
Allianz Trade
Allianz Trade