Economic data in 2016
Labour / sector: service (8, 7), Industry ( 8), access (9,6%), construction (8,3%), Education (9,6%),
Agriculture (7,5%), health (5,9%), Public Administration and defense (6,6%)
Exports-partners: Lithuania (, 4), Estonia (, 7), Russia (, 8) Germany (6.9%) Poland (6.4%), Sweden
In Latvia in the first 8 months of 2014, the budget deficit was € 223.8 million, which evolved to 1% of
GDP, while the current account deficit was € 224 million.
In May 2014, the reserve of the Central Bank of Latvia was € 2.7 billion.
The main sectors that should attract the attention of foreign investors are transport, infrastructure,
food, timber, mechanical engineering and pharmaceutical industry.
Growth rates fell lower than the rates of the last 2 years in the first quarter of the year due to the
decreasing domestic demand. While the decrease in consumption and public expenditures limited
the total consumption increase in the first quarter, the fixed investment increase decreased by half
compared to the previous quarter. With the effect of the growth in solid matter exports, a slowdown
was observed in the foreign sector. The growth rate is stable in the second quarter. According to the
data obtained, economic sentiment has weakened its confidence in all sectors except industry, and
has declined to the lowest level in the last two years in May. Moreover, the increase in exports
slowed down considerably in April and the decrease in demands was seen to have damaged the
Due to the decrease in demand from the trade partners of Latvia, the restriction of the European
Union harmonization funds and the increase of geopolitical uncertainty, growth rates decreased, as
investment activities decreased. Nevertheless, thanks to the partially sustainable salary increase,
private consumption will remain stable and overall growth will be achieved. FocusEconomics
panelists state that GDP increased by 3.4% in 2019 and decreased by 3.2% in 2020.
The most important sectors of the Latvian economy are agriculture, chemicals, logistics and timber.
Other important sectors are textile, food processing, machinery manufacturing and green
Latvia has soils suitable for temperate climate and agriculture. Agriculture, which constitutes 3/1 of
the sector, is the traditional trade of Latvians and is still valid. Products such as dairy products and
honey are important products of export.
There are educated people working in the chemical industry. Pharmacy, recycling, environmentally
friendly chemicals and biocosmetic products are produced in Latvia and exported abroad. University-
trained experts studying at the Organic Synthesis Institute conduct innovative basic research and
development. Medical discoveries are among the highlights of the Latvian chemical industry.
Thanks to the geographical location of Latvia, the logistics industry is very important and is still
relevant today. Latvia's ports, railways and roads have always linked Europe and the rest of the West
to the East. 25 million customers can be served within 48 hours in the Baltic region next to Latvia.
Riga Airport operates flights to 100 destinations to Europe and transcontinental countries.
Timber is an important sector of Latvia. Half of the country is covered with forests, some of which
have been cut and exported. Raw timber and manufactured products are an important component
of Latvian exports. Designated natural reserves, state-owned forests and long-term business
strategies maintain the balance between business and nature.
Innovative sectors such as high-tech electronics, information technologies and design are also
important sectors of the Latvian economy. The infrastructure used in logistics and communication
makes business and trade easier and more competitive. Innovations in Latvia are followed with