Moderate recovery from Covid-19 shock in 2021

BB2

Medium RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD34bn (World ranking 99, World Bank 2019)
Population 1.93mn (World ranking 149, World Bank 2019)
Form of state Parliamentary republic
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 (0.6% of GDP in 2018) relative to OECD average (2.4% of GDP in 2018)
  • 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
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