Estonia Estonia vs Latvia Latvia development indicators, 2024

Indicator
Estonia
Estonia, Value
Latvia
Latvia, Value
Estonia
Estonia, Rank
Latvia
Latvia, Rank
Estonia Estonia as % of
Latvia Latvia
Current account balance (% of GDP) -1.15 -2.12 64 73 54 %
Exports of goods and services (% of GDP) 76.3 64.6 15 29 118 %
Foreign direct investment, net inflows (% of GDP) -8.18 2.96 105 42
GDP per capita (current US$) 31,170 23,368 41 53 133 %
GDP per capita, PPP (current international US$) 49,334 43,867 44 52 112 %
Imports of goods and services (% of GDP) 75.7 67.2 15 27 113 %
Inflation, consumer prices (annual %) 3.52 1.27 62 132 278 %
Net migration -7,742 -2,225 147 123 348 %
Population, total 1,371,986 1,862,441 155 150 73.7 %

Demography and Health

Estonia and Latvia exhibit some differences in demographic indicators and health outcomes. Estonia has a slightly higher birth rate of 8 per 1,000 people compared to Latvia's 7.7, ranking 64th globally against Latvia's 70th. Conversely, the crude death rate in Estonia stands at 11.7 per 1,000, which is lower than Latvia's 14.9, indicating a healthier population overall, with Estonia ranking 35th and Latvia 11th. Moreover, life expectancy at birth is higher in Estonia at 78.5 years, compared to 75.7 years in Latvia, reflecting better health outcomes. Additionally, Estonia has a lower under-5 mortality rate of 2.1 per 1,000 live births, whereas Latvia's rate is 3.0, ranking Estonia at 81st and Latvia at 60th. Both countries report an identical poverty headcount ratio of 22.5% and a prevalence of undernourishment at 2.5% of the population, indicating similar levels of food security. However, Estonia's net migration is notably higher at -7,742, whereas Latvia's is at -2,225, suggesting different trends in population movements.

Economy

Estonia leads Latvia in several economic indicators. As of 2024, Estonia's GDP per capita stands at $31,170, significantly higher than Latvia's $23,368, placing Estonia 59th in the world compared to Latvia's 83rd. In terms of purchasing power parity (PPP), Estonia again outperforms Latvia, with $49,334 versus $43,867. Estonia's economy is heavily export-oriented, with 76.3% of its GDP coming from exports, compared to Latvia's 64.6%, ranking Estonia 43rd and Latvia 56th. On the other hand, Estonia experiences a higher inflation rate of 3.5%, relative to Latvia's 1.3%, which may challenge the purchasing power of its residents.

Trade and Investment

When it comes to trade and investment, Estonia has a higher level of foreign direct investment (FDI) net inflows, albeit negative at -8.2% of GDP, compared to Latvia’s positive inflows of 3%. This disparity may influence the stability and growth potential of both economies, with Latvia's investment environment appearing more favorable. Estonia also has a slightly higher logistics performance index score of 3.5, compared to Latvia's 3.3, indicating superior trade and transport-related infrastructure quality in Estonia, which can enhance its competitive edge in international trade.

Governance and Institutions

Estonia demonstrates higher governance effectiveness as reflected in its control of corruption score (1.5) and government effectiveness score (1.3), compared to Latvia's scores of 0.7 in both indicators. In terms of political stability and the absence of violence, Estonia scores 0.7, slightly better than Latvia’s score of 0.6. Both countries have made strides in regulatory quality and rule of law, with Estonia scoring 1.4 in both categories, showing stronger legal frameworks than Latvia, which scored 1 and 1.2 respectively. Both countries have similar unemployment rates, with Estonia at 6.4% and Latvia at 6.5%, indicating comparable labor market conditions.

Infrastructure and Technology

Estonia showcases significant strengths in technology adoption, with 93.2% of its population using the Internet, compared to 92.2% in Latvia, placing Estonia 26th and Latvia 33rd globally. The quality of trade and transport-related infrastructure again favors Estonia, as indicated by its higher logistics performance index. Furthermore, Estonia has a robust research and development expenditure at 1.8% of GDP, far outpacing Latvia's 0.8%, suggesting a greater emphasis on innovation and technology advancement.

Environment and Sustainability

Estonia has made notable progress in renewable energy consumption, reaching 38% of total energy consumption compared to Latvia's 44%, though both countries rank well in their commitment to renewable energy. Estonia’s total greenhouse gas emissions per capita are 10.5 t CO2e, significantly higher than Latvia's 5.8 t CO2e, reflecting challenges in managing emissions and a need for more sustainable practices. Water stress levels contrast sharply; Estonia's freshwater withdrawal is at 10.8% of available resources, indicating a significant concern compared to Latvia's 1.1%, which might reflect better freshwater management in Latvia.