Germany vs Latvia development indicators, 2024

Indicator	Germany, Value	Latvia, Value	Germany, Rank	Latvia, Rank	Germany as % of Latvia
Current account balance (% of GDP)	5.73	-2.12	18	73
Exports of goods and services (% of GDP)	42.1	64.6	53	29	65.1 %
Foreign direct investment, net inflows (% of GDP)	1.02	2.96	73	42	34.5 %
GDP per capita (current US$)	55,800	23,368	17	53	239 %
GDP per capita, PPP (current international US$)	72,300	43,867	18	52	165 %
Imports of goods and services (% of GDP)	38.2	67.2	75	27	56.9 %
Inflation, consumer prices (annual %)	2.26	1.27	103	132	178 %
Net migration	36,954	-2,225	29	123
Population, total	83,510,950	1,862,441	19	150	4,484 %

Demography and Health

The demography and health indicators reveal key differences between Germany and Latvia. Germany has a crude birth rate of 8.3 per 1,000 people, slightly higher than Latvia's 7.7. However, Latvia has a significantly higher crude death rate at 14.9 compared to Germany's 12.3, indicating potential concerns in health outcomes. Life expectancy in Germany stands at 80.5 years, which is notably higher than Latvia's 75.7 years. Under-5 mortality rates are also better in Germany at 3.7 per 1,000 live births versus Latvia's 3. The heathcare system in Germany appears more robust as evidenced by higher domestic general government health expenditure per capita at $6,791 compared to Latvia's $2,032. Germany also boasts a higher number of physicians per 1,000 people (4.5) against Latvia's 3.4. However, Latvia faces challenges with a higher suicide mortality rate of 15.2 per 100,000 population compared to Germany's 12.9.

Economy

Germany displays stronger economic indicators with a GDP per capita of $55,800 compared to Latvia’s $23,368. When adjusted for purchasing power parity, Germany again leads with $72,300 against Latvia's $43,867. Latvia has a much heavier reliance on exports, with 64.6% of its GDP from exports of goods and services, which is significantly higher than Germany's 42.1%. The inflation rate in Latvia at 1.3% shows a more stable economy in that aspect compared to Germany's 2.3%. Unemployment rates illustrate a contrast as well, with Germany at a low 3.1% versus Latvia’s relatively high 6.5%. Interestingly, Latvia shows a net outflow of migration at -2,225, which suggests challenges in either attracting or retaining talent.

Trade and Investment

In terms of trade and investment, Germany has a more developed high-technology export sector, generating $255.7 billion compared to Latvia’s $2.1 billion. The imports of goods and services as a percentage of GDP also indicate a disparity; Germany's 38.2% is lower than Latvia’s 67.2%, suggesting Latvia is heavily reliant on imports. The balance of trade could present challenges in Latvia, given its net current account balance of -2.1% of GDP compared to Germany's surplus of 5.7%. Foreign direct investment also plays a crucial role; Germany has low net inflows of 1% of GDP, whereas Latvia attracts more with 3%.

Governance and Institutions

The governance landscape in Germany appears stronger with higher scores in various governance indicators. It ranks better in terms of control of corruption (1.7) and government effectiveness (1.2) compared to Latvia, which scores 0.7 in both areas. Germany's rule of law (1.6) also ranks significantly better than Latvia’s score of 1. On political stability and absence of violence, both countries score equally at 0.6. Latvia, however, has limited regulatory quality at 1.2, which is lower compared to Germany's 1.5, suggesting more efficient regulations in Germany.

Infrastructure and Technology

Germany's infrastructure, particularly in trade and transport, is rated higher with a logistics performance index of 4.3 confidently ahead of Latvia’s 3.3. Such infrastructure is critical for facilitating trade and economic growth. In terms of innovation, Germany leads with a significant number of patent applications (39,822) compared to Latvia’s modest 104. Additionally, research and development expenditure as a percentage of GDP showcases Germany's commitment to technological advancement at 3.1%, while Latvia falls behind at 0.8%. This gap suggests that Germany is more invested in enhancing its technological capabilities.

Environment and Sustainability

When analyzing environment and sustainability, Latvia demonstrates a commendable performance in renewable energy consumption, with 44% of its total final energy consumption coming from renewable sources, dwarfed by Germany at 17.6%. Latvia's level of water stress is notably low at 1.1%, showcasing more sustainable management of freshwater resources compared to Germany's 35.4%. In terms of greenhouse gas emissions, Latvia has an advantage with a per capita emission of 5.8 tons of CO2e, while Germany’s figure stands at 8.1 tons. This indicates that Latvia currently has a potential edge when it comes to balancing economic growth and environmental sustainability despite its economic challenges.