Latvia/Economy

Economy of Latvia

An overview of key economic indicators. Select a category for detailed trends, charts, and insights.

Explore Economic Domains

Growth & Output

Coming Soon
GDP (USD)
$42.2B(2023)
GDP PPP (USD)
$77.9B(2023)
GDP per Capita (USD)
$22,503(2023)
GDP Growth (inflation-adjusted)
1.7%(2023)
Inflation (CPI Annual %)
1.3%(2024)

Trade & Finance

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Exports (as share of GDP)
67%(2023)
Imports (as share of GDP)
70.7%(2023)
FDI Inflows (as share of GDP)
4%(2023)
Remittance Inflow (USD)
$1.2B(2023)
Tax Revenue (as share of GDP)
16.8%(2023)

Labor & Income

Coming Soon
Unemployment Rate
6.7%(2024)
Employment in Services
70.3%(2023)
Poverty Rate
22.5%(2022)
GINI Index
33.7(2022)
GNI per Capita (USD)
$22,630(2023)

Energy & Environment

Coming Soon
Energy Use per Capita
2370 kg oil eq.(2023)
Renewable Energy Consumption (%)
44%(2021)

Economic Snapshot Overview

A summary of key economic indicators for Latvia

  • The economic architecture of Latvia is substantial, anchored by a Gross Domestic Product (GDP) of approximately $42.25B
    2023
    . This places it as the 97th largest economy out of 191 countries measured, underscoring its significance on the world stage. On a per capita basis, GDP stands at $22.5K
    2023
    , while its GDP in Purchasing Power Parity (PPP) terms is estimated at $77.9B, reflecting the population's domestic purchasing power. The economy is seeing modest growth of 1.7%
    2023
    , accompanied by stable price levels, with inflation (CPI) at 1.3%
    2024
    .
  • On the global stage, the nation's trade and financial dynamics reveal a complex interplay of factors. The nation runs a trade deficit, with exports at 67.0% of GDP and imports at 70.7%
    2023
    . Foreign Direct Investment (FDI) inflows are significant, constituting 4.00% of the economy
    2023
    . This performance positions the country 47th globally out of 186 nations, indicating its relative attractiveness to foreign capital. Additionally, personal remittances received amount to a substantial $1.23B annually
    2023
    , highlighting the economic importance of its diaspora. Fiscal capacity is moderate, with tax revenue at 16.8% of GDP
    2023
    .
  • The socio-economic landscape is characterized by a Gross National Income (GNI) per capita of $22,630
    2023
    . Globally, this ranks the nation 45th out of 190 in terms of GNI per capita, providing a clear measure of its national wealth relative to others. The labor market is stable, with unemployment at 6.7%
    2024
    . The services sector is a primary driver of the labor market, accounting for 70.3% of total employment
    2023
    . Poverty remains a key issue, with 22.5% of the population living below the national poverty line
    2022
    . The country has a relatively equitable distribution of income, with a Gini index of 33.7
    2022
    .
  • On the environment and energy front, energy consumption per capita is 2,370.273 kg of oil equivalent
    2023
    . The country is a leader in clean energy, with renewable sources making up 44.0% of total final energy consumption
    2021
    . Its commitment to clean energy places it 136th among 190 countries for its share of renewable energy consumption.

Key Economic Insights

Macroeconomic Health

Maintaining a balance between growth, inflation, and employment is the central challenge for economic policymakers.

Trade & Investment Profile

The degree of openness to trade and foreign investment is a major determinant of economic structure and resilience.

Social Equity & Distribution

Distributing the benefits of economic growth equitably is crucial for social cohesion and long-term stability.

Energy & Sustainability

A strong commitment to renewable energy positions the country as a leader in the green transition, potentially creating new economic advantages.

More About This Country

Neighbors & Regional Peers

Note: The information on this page has been compiled from authoritative sources. While every effort is made to ensure accuracy, please note that some figures may not be current or entirely precise.