Latvia profile

Demography and Health

Latvia is a small European country with a population of about 1.86 million in 2024, ranking around 150 in global population size. The country exhibits an aging demographic profile, reflected in a life expectancy of 75.7 years (2023) and a crude birth rate of 7.7 per 1,000 people (2023) alongside a notably high death rate of 14.9 per 1,000 people (2023). This combination helps explain a relatively low natural population growth and a tendency toward aging, which has implications for future healthcare demand and pension systems. Net migration in 2024 is negative (-2,225), signaling a mild outward flow that can compound aging pressures and affect labor supply and population dynamics over time. The country records an under-5 mortality rate of 3.0 per 1,000 live births (2023) and a physician density of 3.38 per 1,000 people (2021), suggesting a functioning health system but with room to improve perinatal health and access in certain regions. Health expenditure sits at about 7.62% of GDP (2022), with domestic government health expenditure per capita (PPP) around 2,032 international US dollars (2022), indicating substantial public investment in health alongside private and insurance contributions. The health profile is complemented by a suicide mortality rate of 15.2 per 100,000 (2021), highlighting mental health as an area requiring continued attention. Poverty remains significant, with 22.5% of the population under national poverty lines (2022) and undernourishment at 2.5% (2022), underscoring persistent social vulnerabilities that health and social policies must address. Latvia also records a relatively high penetration of internet use at 92.2% of the population (2023), a factor that interacts with health service delivery, telemedicine potential, and public health information dissemination.

Economy

Latvia’s GDP per capita stands at about 23,368 current US dollars (2024), with a purchasing power parity (PPP) measure of roughly 43,867 international US dollars, indicating a middle-income economy by European standards. Inflation remains modest at 1.27% in 2024, while the unemployment rate is 6.46% (2023), reflecting a relatively solid labor market within a small open economy. The country runs an open trade regime, with exports of goods and services equal to 64.6% of GDP and imports at 67.2% of GDP (both 2024), signaling a high level of trade integration and reliance on external markets for growth and consumer goods. The current account shows a deficit of 2.12% of GDP (2024), which, while manageable, indicates ongoing external financing needs or consumption of foreign savings. Latvia attracts foreign direct investment amounting to about 2.96% of GDP (2024), suggesting a moderate but positive climate for capital inflows. In the innovation space, high-technology exports amount to about 2.13 billion USD (2023), with R&D expenditure at 0.764% of GDP (2022) and 104 resident patent applications (2021), pointing to a developing but still modest knowledge-based sector relative to peers. The economy shows signs of efficiency and openness, but structural challenges linked to productivity and demographic dynamics persist.

Trade and Investment

Latvia demonstrates an externally oriented economy, with exports of goods and services at 64.6% of GDP and imports at 67.2% of GDP in 2024, reflecting a highly integrated regional and global trade posture. The current account balance stands at a deficit of 2.12% of GDP (2024), suggesting that trade flows and investment positions are balanced but reflect ongoing import needs or investment financing. Foreign direct investment net inflows are 2.96% of GDP (2024), signaling a supportive but competitive environment for foreign capital. Latvia’s logistics performance index for trade and transport-related infrastructure scores 3.3 on a 1-to-5 scale (2022), with a ranking of 13 in quality of logistics, indicating relatively efficient supply chains and transit capability. The country’s innovation indicators—resident patent applications (104 in 2021) and a measurable but still modest level of high-technology exports (about 2.13 billion USD, 2023)—suggest ongoing progress in moving up the value chain, albeit from a modest base. Overall, Latvia exhibits substantial trade openness and improving but still evolving capabilities in logistics, innovation, and international investment.

Governance and Institutions

Latvia’s governance indicators point to a country with relatively solid regulatory quality and rule of law within the European context. Political stability and absence of violence or terrorism are measured at 0.591 (2023), with regulatory quality at 1.17, rule of law at 1.04, control of corruption at 0.698, and government effectiveness at 0.697 (all for 2023). While global rankings are not included here, these figures suggest Latvia maintains a reasonably stable political environment and effective institutions with sound regulatory frameworks and anti-corruption measures. The composite impression is of a country with robust governance mechanisms that support business, investment, and public service delivery, albeit with continued need to address remaining vulnerabilities and implementation gaps to sustain momentum and resilience in a changing external environment.

Infrastructure and Technology

Latvia benefits from strong digital connectivity, with 92.2% of the population using the internet in 2023, enabling digital services, e-government, and remote work. The logistics and trade infrastructure is rated relatively highly, with a Logistics Performance Index score of 3.3 (2022) and a rank of 13 in quality of trade and transport-related infrastructure, indicating efficient port, road, and rail networks that facilitate trade with neighboring markets and beyond. Latvia also shows investment in innovation and technology, with R&D expenditure at 0.764% of GDP (2022) and 104 resident patent applications (2021). High-technology exports reach about 2.13 billion USD (2023), reinforcing a trajectory toward knowledge-based industries. These elements—broad digital inclusion, strong logistics capabilities, and ongoing R&D activity—support productivity growth, digital transformation, and resilience in a small, open economy.

Environment and Sustainability

Latvia demonstrates notable progress in renewable energy, with renewables comprising 44% of total final energy consumption as of 2021, reflecting a substantial shift toward low-carbon energy sources. Per-capita greenhouse gas emissions are about 5.84 t CO2e (2023), placing Latvia among nations with moderate emissions consistent with its energy mix and industry structure. The level of water stress, measured as freshwater withdrawal relative to available resources, stands at 1.07 (2021), indicating a moderate to elevated stress level that underscores the importance of water management and efficiency measures. Latvia’s environmental performance thus combines strong renewable energy progress with continued attention to emissions intensity, water resources, and sustainability in industrial and household sectors. Collectively, these indicators suggest a country actively pursuing decarbonization and sustainable development while balancing growth, social needs, and resource constraints.