Economy of Latvia

History

During times of the Hanse and enters it two wars, the Latvia uses of its position of crossroads between the east and the west to develop. However, the Soviet period of Russian occupation then that will transform the Latvian industry historically based on the importation of Bois of Papier or farm products towards a production falling under logic imperialist of the occupant.

The conquest of independence in 1991 leads the state to privatiser to keep only the manufacturing sectors of public goods of which Latvenergo which is the leader as regards energy. The resumption of the growth is seen stopped by twice: by the bankruptcy of Banka Baltija , the largest bank of the country, and second once following the Russian stock exchange crash landing of 1998.

The financial deficit of the state is one of low among the countries which joined the European Union in 2004 whereas its growth rate is strongest.

Facts

The currency is Lats (LVL) which is equivalent to 100 centimes (santims).

Inflation was relatively strong but the revalorization of the minimum wage (+14,3%) to 138 € goes back only to 2005 and does not allow really a profit purchasing power. However, the government envisages to make it pass to 212€ in January 2010. The minimum wage is lowest of Europe (11,5 times less than the Luxembourg) and than it is the wages of 15% of full-time employees.

productions of the primary sector

the cereals
the sugar beet
the potato
the vegetables
the ox
milk
the pig
the fish
wood

productions of the secondary industry

sugar
products of wood
Machines and equipment
Textile Metal

Electricity

production: 4.547 GWh (2002)

production by source:
fossil energy: 29,1%
hydroelectric energy: 70,9%
nuclear energy: 0%
others: 0% (2001) (existing wind farms/production: ???)

consumption: 5.829 GWh (2002)

exports: 1.100 GWh (2002)

imports: 2.700 GWh (2002)

In Figures

total GDP (PPP) (2004): 18.230 million $

by sector (2004)

agriculture: 4.4%
industry: 24.8%
services: 70.8%

per capita (PPP): 7.730 $/habitant

annual Growth (1991 - 2001): -1.6%
Annual growth (2005): 10,2%

Agriculture (2002): 3.9%
Industry (2002): 8.4%

Active population by sector (2000)

I: 15%
II: 25%
III: 60%

Rate of Inflation (2005): 7,1%

958.6% in 1992
25% in 1995
1.4% in 2002.
1.9% in 2004

Rate of Unemployment (2005): 7,5%

the moonlighting being tracked much more, the figures pass from 12,2% in 2004 to 7,5%.

total Dette external (2004): 6.971 million $
Exports : 3,569 million $ (2004)

Produced: wood and product of wood, machinery and equipment, metals, textiles, agroalimentary
Partners: The United Kingdom 22.1%, Germany 9.9%, the United States 8.2%, Sweden 7.3%, France 6.6%, Lithuania 6.4%, Estonia 5.2%, Denmark 4.2%, Russia 4.1%

Imports : 5,97 million $ (2004)

Produced: machinery and equipment, chemicals and tankers, vehicles
Partners: Germany 16.1%, Russia 14.4%, Lithuania 7.6%, Finland 6.5%, Sweden 5.6%, Estonia 5.1%, Italy 4.2%, Poland 4%

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