Explore Latvia

Economy

Latvia’s economy is dynamic and open, part of both the European Single Market and the Eurozone, with key strengths in transit services, manufacturing, timber, and food production. Having transitioned to a market economy after its independence in 1991, Latvia has developed a well-diversified economy with a focus on services, which comprise the largest sector. The industrial sector, notably strong in wood processing, electronics, and machinery, supports Latvia’s export-driven growth alongside agricultural products such as grains and dairy.

The country experienced notable growth in GDP in recent years, with services accounting for around 65% of GDP, followed by industry at 25%. Latvia has a history of high economic resilience, particularly post-recession, supported by policies encouraging private investment and entrepreneurship. Latvia ranks competitively in the World Bank’s Ease of Doing Business Index, offering a favorable environment for business and investment, especially in the tech and innovation sectors

Latvia’s trade partnerships are predominantly within the EU, with significant exports going to Lithuania, Estonia, and Germany, alongside other European markets. Key exports include wood products, machinery, and agricultural goods. Import needs, however, include fuel, machinery, and various consumer goods  

For more detailed data on Latvia’s economic development, you may find Latvia’s economic reports or Ministry of Economics publications insightful.