Latvia vs Romania development indicators, 2024

Demography and Health

In terms of demography, Latvia has a total population of approximately 1.9 million, significantly smaller than Romania's 19.1 million. The crude birth rate in Latvia stands at 7.7 births per 1,000 people, slightly lower than Romania's 8. Meanwhile, Latvia experiences a higher crude death rate at 14.9 compared to Romania's 12.7. Both countries have seen challenges in their respective health sectors; however, Latvia reports a lower under-5 mortality rate at 3 deaths per 1,000 live births compared to Romania's 6.6. Life expectancy is slightly lower in Latvia, at 75.7 years compared to Romania's 76.6 years. Latvia's suicide mortality rate at 15.2 per 100,000 population is notably higher than Romania's 9.6, indicating potential mental health concerns.

Economy

Latvia's economy, as measured by GDP per capita, stands at $23,368, which surpasses Romania's $20,072, reflecting a stronger economic performance on a per-person basis. However, when considering GDP per capita in terms of purchasing power parity (PPP), Latvia's figure is lower at $43,867 compared to Romania's $48,712, indicating that the cost of living is higher in Latvia. The inflation rate in Latvia is significantly lower at 1.3% versus Romania's 5.7%, which could contribute to a more stable economic environment. Foreign direct investment as a percentage of GDP is 3% in Latvia compared to Romania's 1.9%, suggesting that Latvia may be a more attractive destination for investors.

Trade and Investment

Latvia's exports of goods and services account for 64.6% of its GDP, indicating an economy heavily reliant on international trade compared to Romania’s 35.6%. Conversely, Latvia's imports also take up a larger share of its GDP at 67.2% versus Romania's 41.7%. This trade imbalance may suggest opportunities for local industry development in Latvia. High-technology exports are significantly greater in Romania at $9.7 billion, whereas Latvia's figure stands at $2.1 billion, signifying a potential area for growth in the Latvian economy.

Governance and Institutions

Governance in Latvia appears to be more effective than in Romania, as indicated by Latvia's Control of Corruption score of 0.7 compared to Romania’s 0. This is further supported by Latvia's Government Effectiveness rating of 0.7, against Romania's -0.1. The Rule of Law indicator also favors Latvia at 1, compared to Romania's 0.4, suggesting a stronger legal framework. However, both nations face challenges, with Romania ranking lower in political stability and absence of violence/terrorism (0.4) than Latvia (0.6), indicating some risks in the Romanian political landscape.

Infrastructure and Technology

When examining logistics performance, Latvia outperforms Romania with a score of 3.3 in trade and transport-related infrastructure, compared to Romania’s 2.9. Additionally, Latvia has a higher percentage of individuals using the Internet (92.2%) compared to Romania (89.2%), showcasing a slightly more connected population. Both countries, however, are investing in technology, with Latvia showing promise in its research and development expenditure at 0.8% of GDP, higher than Romania's 0.5%.

Environment and Sustainability

Latvia leads in renewable energy consumption, with 44% of its total energy consumption coming from renewable sources, significantly higher than Romania's 23.6%. This aligns with Latvia's lower level of water stress, where only 1.1% of freshwater resources are withdrawn, compared to Romania's 7.4%. Both nations report similar levels of undernourishment at 2.5%, indicating that food security measures are in place and relatively effective. In terms of greenhouse gas emissions, Latvia's per capita emissions stand at 5.8 tons CO2e, slightly higher than Romania’s 5.6 tons, indicating that environmental sustainability efforts may need to improve in both countries.