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Economy of Latvia

Latvia is considered to be a developed nation. The developmental stage of a nation is determined by a number of factors including, but not limited to, economic prosperity, life expectancy, income equality, and quality of life. As a developed nation, Latvia is able to provide its citizens with social services like public education, healthcare, and law enforcement. Citizens of developed nations enjoy a high standard of living and longer life expectancies than citizens of developing nations. Each year, Latvia exports around $12.67 billion and imports roughly $15.56 billion. 8.3% of population in the country are unemployed. The total number of unemployed people in Latvia is 160,185. In Latvia, 22.5% of the population lives below the poverty line. The percentage of citizens living below the poverty line in Latvia is fairly high, but is not reason for complete concern with regard to investments. Potential financial backers should look at other economic markers, including GDP, urbanization rate, and strength of currency, before making any decisions regarding investments. Government expenditure on education is 5% of GDP. The Gini Index of the country is 35.2. Latvia is experiencing good equality. The majority of citizens in Latvia fall within a narrow range of income, although some cases may show significant differences. Latvia has a Human Development Index (HDI) of 0.81. Latvia has a high HDI score. This indicates that the majority of citizens will be able to attain a desirable life while providing substantial aid and assistance to citizens with lower living standards. The Global Peace Index (GPI) for Latvia is 1.695. Due to strong law enforcement presence and high social responsibility, Latvia is very safe by international standards. The strength of legal rights index for Latvia is 9. Overall, it is considered to be rather strong - bancrupcy and collateral laws are able to protect the rights of borrowers and lenders quite well; credit information is abundant and easily accessible.

Currency

The currency of Latvia is euro. There are several plural forms of the name 'euro'. These are euro, euros. The symbol used for this currency is €, and it is abbreviated as EUR. The euro is divided into Cent; there are 100 in one euro.

Credit rating

The depth of credit information index for Latvia is 6, which means that information is mostly sufficient and quite detailed; accessibility is not a problem. According to the S&P credit-rating agency, Latvia has a credit rating score of A-, and the prospects of this rating are stable. According to the Fitch credit-rating agency, Latvia has a credit rating score of A-, and the prospects of this rating are stable. According to the Moody's credit-rating agency, Latvia has a credit rating score of A3, and the prospects of this rating are stable.

Central bank

In Latvia, the institution that manages the state's currency, money supply, and interest rates is called Bank of Latvia. Locally, the central bank of Latvia is called Latvijas Banka. The average deposit interest rate offered by local banks in Latvia is 0.2%.

Public debt

Latvia has a government debt of 39.3% of the country's Gross Domestic Product (GDP), as assessed in 2012.

Tax information

The corporate tax in Latvia is set at 15%. Personal income tax ranges from 24% to 24%, depending on your specific situation and income level. VAT in Latvia is 21%.

Finances

The total Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) in Latvia is $48362 billion. The Gross Domestic Product (GDP) assessed as Purchasing Power Parity (PPP) per capita in Latvia was last recorded at $25 million. PPP in Latvia is considered to be below average when compared to other countries. Below average PPP indicates that citizens in this country find it difficult to purchase local goods. Local goods can include food, shelter, clothing, health care, personal care, essential furnishings, transportation and communication, laundry, and various types of insurance. Countries with below average PPP are dangerous locations for investments. The total Gross Domestic Product (GDP) in Latvia is 30,886 billion. Based on this statistic, Latvia is considered to have a medium economy. Countries with medium economies support an average number of industries and opportunities for investment. It should not be too difficult to find worthwhile investment opportunities in medium economies. The Gross Domestic Product (GDP) per capita in Latvia was last recorded at $16 million. The average citizen in Latvia has very low wealth. Countries with very low wealth per capita often have lower life expectancies and dramatically lower quality of living among citizens. It can be very difficult to find highly skilled workers in countries with very low wealth, as it is difficult for citizens to obtain the requisite education needed for specialized industries. However, labor can be found for very low rates when compared with countries with higher wealth per capita. GDP Annual Growth Rate in Latvia averaged 2.7% in 2014. According to this percentage, Latvia is currently experiencing modest growth. Countries that are experiencing modest growth offer safe opportunities for investment; their expanding economy indicates that businesses, jobs, and income will expand accordingly. To read more about financial information click on finances of Latvia.

Industry

Major industries in the country are processed foods, processed wood products, textiles, processed metals, pharmaceuticals, railroad cars, synthetic fibers, electronics. The total labor force of Latvia is 999,670 people, wherein 8.3% of population in the country are unemployed. The total number of unemployed people in Latvia is 160,185. The Industrial Production growth rate of Latvia is -1.8%.To read more about industrial information within Latvia click on industry of Latvia.

Agriculture

There are 17926 km2 of arable land in Latvia, and it comprises 28% of the country's total territory. There are 18212 km2 of cultivated land in Latvia. The country's major agricultural crops and products are grain, rapeseed, potatoes, vegetables, pork, poultry, milk, eggs, fish.To read more about agriculture click on agriculture of Latvia.