Economy - overview:
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. The
majority of companies, banks, and real estate have been privatized,
although the state still holds sizable stakes in a few large
enterprises. Latvia officially joined the World Trade Organization
in February 1999. Preparing for EU membership continues as a top
foreign policy goal. The current account and internal government
deficits remain major concerns, but the government's efforts to
increase efficiency in revenue collection may lessen the budget
deficit.
GDP:
purchasing power parity - $23.9 billion (2003 est.)
GDP - real growth rate:
7.4% (2003 est.)
GDP - per capita:
purchasing power parity - $10,200 (2003 est.)
GDP - composition by sector: agriculture: 4.5% industry: 24.5% services: 70.9% (2003)
Investment (gross fixed):
27.1% of GDP (2003)
Population below poverty line:
NA
Household income or consumption by percentage share: lowest 10%: 2.9% highest 10%: 25.9% (1998)
Distribution of family income - Gini index:
32 (1999)
Inflation rate (consumer prices):
2.9% (2003 est.)