embassy: Raina Boulevard 7, LV-1510, Riga
mailing address: American Embassy Riga, PSC 78, Box Riga, APO AE 09723
telephone: [371] 721-0005
FAX: [371] 782-0047
Flag description: three horizontal bands of maroon (top), white (half-width), and maroon
Latvia Economy
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.)