Latvia Economy 2001

Economy - overview: In 2000, Latvia's transitional economy recovered from the 1998 Russian financial crisis, largely due to the SKELE government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Latvia's trade dependency on Russia. Latvia officially joined the World Trade Organization in February 1999 - the first Baltic state to join - and was invited at the Helsinki EU Summit in December 1999 to begin accession talks in early 2000. Unemployment fell to 7.8% in 2000, down from 9.6% in 1999, and 9.2% in 1998. Privatization of large state-owned utilities and the shipping industry faced more delays in 2000, and political instability will continue to delay completion of the privatization process over the next year. Latvia projects 6% GDP growth, 2.5%-3.0% inflation, and a 1.7% fiscal deficit in 2001. Preparing for EU membership over the next few years remains a top foreign policy goal.

GDP: purchasing power parity - $17.3 billion (2000 est.)

GDP - real growth rate: 5.5% (2000 est.)

GDP - per capita: purchasing power parity - $7,200 (2000 est.)

GDP - composition by sector:
agriculture: 5%
industry: 33%
services: 62% (1999)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 2.9%
highest 10%: 25.9% (1998)

Inflation rate (consumer prices): 2.7% (2000)

Labor force: 1.4 million (2000 est.)

Labor force - by occupation: agriculture 10%, industry 25%, services 65% (2000 est.)

Unemployment rate: 7.8% (2000 est.)

Budget:
revenues: $1.33 billion
expenditures: $1.27 billion, including capital expenditures of $NA (1998 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, raw materials, and intermediate products

Industrial production growth rate: 6.3% (2000 est.)

Electricity - production: 3.996 billion kWh (1999)

Electricity - production by source:
fossil fuel: 31.78%
hydro: 68.22%
nuclear: 0%
other: 0% (1999)

Electricity - consumption: 4.316 billion kWh (1999)

Electricity - exports: 400 million kWh (1999)

Electricity - imports: 1 billion kWh (1999)

Agriculture - products: grain, sugar beets, potatoes, vegetables; beef, milk, eggs; fish

Exports: $2.1 billion (f.o.b., 2000)

Exports - commodities: wood and wood products, machinery and equipment, metals, textiles, foodstuffs

Exports - partners: Germany 16%, UK 11%, Sweden 11%, Russia 7% (1999)

Imports: $3.2 billion (f.o.b., 2000)

Imports - commodities: machinery and equipment, chemicals, fuels

Imports - partners: Russia 15%, Germany 10%, Finland 9%, Sweden 7% (1999)

Debt - external: $800 million (2000 est.)

Economic aid - recipient: $96.2 million (1995)

Currency: Latvian lat (LVL)

Currency code: LVL

Exchange rates: lati per US dollar - 0.614 (January 2001), 0.607 (2000), 0.585 (1999), 0.590 (1998), 0.581 (1997), 0.551 (1996)

Fiscal year: calendar year

NOTE: The information regarding Latvia on this page is re-published from the 2001 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Latvia Economy 2001 information contained here. All suggestions for corrections of any errors about Latvia Economy 2001 should be addressed to the CIA.