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. The IMF, EU, and other donors provided assistance to Latvia as part of an agreement to defend the currency's peg to the euro and reduce the fiscal deficit to about 5% of GDP. 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. EU membership, a top foreign policy goal, came in May 2004. The current account deficit and inflation remain major concerns.
GDP (purchasing power parity):
$38.95 billion (2008 est.) country comparison to the world: 98 $40.83 billion (2007 est.)
$37.12 billion (2006 est.)
note: data are in 2008 US dollars
GDP (official exchange rate):
$33.98 billion (2008 est.)
GDP - real growth rate:
-4.6% (2008 est.) country comparison to the world: 216 10% (2007 est.)
12.2% (2006 est.)