Short facts about the economy in Latvia

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

Source: World Factbook