Latvia: Economy Overview

Latvia's economy experienced GDP growth of more than 10% per year during 2006-07 but entered a severe recession in 2008 as a result of an unsustainable current account deficit and large debt exposure amid the softening world economy.

Year of EU entry: 2004

Member of Schengen area:Yes

Political system: Republic

Capital city: Riga

Total area: 65 000 km²

Population: 2.3 million

Currency: lats

Listen to the official EU language:  Latvian

Latvia regained independence from the Soviet Union in 1991. Situated on the Baltic coast, Latvia is a low-lying country with large forests that supply timber for construction and paper industries. The environment is rich in wildlife. Latvia also produces consumer goods, textiles and machine tools. The country attracts tourists from all over Europe.

Ethnically, the population is 59% Latvian and 29% Russian, and more than a third live in the capital Riga. Founded in 1201, Riga is the largest city in the three Baltic states with a population of 730 000. Its Freedom Statue is one of the highest monuments in Europe, at 43 metres.

The 100-seat unicameral Latvian Parliament, the Saeima , is elected by direct, popular vote every four years. The president is elected by the Parliament, also every four years.

Among the best-known Latvians are the expressionist painter Mark Rothko and the contemporary composer Peteris Vasks.

Characteristic specialities of Latvian cuisine are spek,api-ra-dzin,i (bacon pies) and a refreshing, cold sour cream soup.

Useful links

• The Commission's Representation in Latvia
• European Parliament office in Latvia
• Latvian Government
• Tourist information

Source: European Commission