Latvia - Country Commercial Guide
Market Overview
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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 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 Eurostat, Latvia’s GDP increased by 2.8 percent in 2022, backed by strong private consumption and exports.  This was a more modest rate of increase than the 4.1 percent GDP increase in 2021.  The EU spring forecast, released on May 15, 2023, predicts a more modest GDP growth of 1.4 percent in 2023 due to continued inflation pressure. 

According to the U.S. Census Bureau’s Foreign Trade Division, in 2022 the main exports to Latvia from the United States were aircraft, electric machinery, petrol oil, vehicles, optical and medical instruments, and beverages and spirits.

Latvia’s main import partners in 2022 were Lithuania (24.3 percent of Latvia’s total imports), Estonia (10 percent), and Germany (9.6 percent ), while the United States was the 19th largest partner.

Political & Economic Environment

Visit State Department’s website for background on the country’s political environment