LATVIA

Growth slows as external demand weakens

BB2

LOW RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Swipe to view more

GDP USD35bn (World ranking 99, World Bank 2018)
Population 1.93mn (World ranking 148, World Bank 2018)
Form of state Parliamentary democracy
Head of government Krisjanis KARINS  (Prime Minister)
Next elections 2022, legislative
  • Low systemic political risk
  • Good international relations
  • Competitive business environment
  • Eurozone membership provides for low transfer and convertibility risk
  • Adequate public finances and access to international capital markets
  • Small industrial base
  • Low R&D spending (0.5% of GDP in 2017) relative to OECD average (2.4% of GDP in 2017)
  • Unfavorable export structure, largely dependent on Russia (geopolitical risk) and other Baltic States
  • Banking sector remains vulnerable due to the high level of (volatile) non-resident deposits
  • Regional inequalities and mismatch in labor markets (between workers and jobs)

Trade structure by destination/origin

(% of total)

Exports Rank Imports
Lithuania 18%
1
18% Lithuania
Estonia 12%
2
12% Germany
Russian Federation 8%
3
11% Poland
Germany 7%
4
8% Estonia
Sweden 6%
5
8% Russian Federation

Trade structure by product

(% of total)

Exports Rank Imports
Cork and wood 10%
1
8% Road vehicles
Telecommunications 8%
2
6% Telecommunications
Wood manufactures 6%
3
6% Petroleum products
Road vehicles 5%
4
4% Pharmaceuticals
Cereals 5%
5
4% Electrical machinery

Contact

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Country Risk Analysts:

Manfred Stamer, Marco Hauschel

      manfred.stamer@eulerhermes.com      

VIEW OUR SOLUTION