Discusses key economic indicators and trade statistics, which countries are dominant in the market, and other issues that affect trade.
Latvia is a member of the European Union, NATO, Eurozone, and the Organization for Economic Cooperation and Development (OECD).
Geographically, Latvia is a natural gateway between the United States and EU and Russia and Asia, with highly developed port, rail, and other transport infrastructure.
Latvia provides various tax, labor, and R&D incentives to foreign investors.
Latvia offers significant cost advantages to investors, including a highly skilled workforce at competitive labor costs, affordable real estate, and competitive tax rates.
Foreign and domestic investments in Latvia are treated equally under the law.
According to the Eurostat, Latvia’s GDP increased by 4.5 percent in 2021, rebounding from the 3.6 percent decrease in 2020. In Q1 of 2022, the GDP grew by 5.6 percent (flash estimate). The EU spring forecast released on May 16, 2022 predicts a more modest GDP growth of 2.0 percent in 2022 due to Latvia’s exposure to trade with Russia.
According to the U.S. Census Bureau’s Foreign Trade Division, the main exports to Latvia from the United States in 2021 were aircraft, beverages and spirits, electric machinery, optical and medical instruments, and various machinery.
Latvia’s main import partners in 2021 were Lithuania (17.2 percent of Latvia’s total imports), Germany (10.5 percent), and Poland (9.5 percent ), while the United States was the 20th largest partner.