Latvia, a member of the EU since 2004, is facing serious economic challenges.  The economy may be overheating and the current account balance is an economic indicator many are watching.

Economic Structure

• Latvia faces economic problems
• Overheating? Government/Central Bank slow to respond
• Current Account Balance: -$5.84 billion, 22% of GDP
• High inflation: 6.5% (2007 CPI est.)
• Currency is pegged to the Euro, increasing inflation
• Privatization of Real Estate and Banks
• WTO in 1999, EU in 2004
• GDP: $27 billion
• Real GDP Growth: 10.7%
• Unemployment: 5.9%
• Riga (capital) produces 57% of GDP

Demographic:

• Median Age
• Male: 36.9 years
• Female: 43 years
• Sex Ratio
• under 15 years: 1.05 male(s)/female
• 15-64 years: 0.95 male(s)/female
• 65 years and over: 0.49 male(s)/female
• Income per Capita: $17,700
• Ethnically diverse
• Life expectancy at birth: 72 years

Latvia By Sector:

• Forestry and Woodworking
• Large natural supple of timber
• Dependence on Russia
• Hurt by Russian financial crises, major import/export partner
• Russia attempting to transport goods via its own ports
• Construction
• 14% increase in 2007, 7% of overall GDP
• Strong investment and booming housing market
• Population density linked with job opportunities
• Fewer schools, healthcare, public services in rural areas
• Best to concentrate focus on major cities

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