Country Profile: Latvia

Latvia is a small, high-income Baltic state located in Eastern Europe, bordered by the Baltic Sea, Estonia, Lithuania, and Russia. With a population of approximately 1.8 million, it has a rich cultural heritage shaped by its historical connections with various nations. The country has a parliamentary republic system of governance, characterized by a strong commitment to democracy and EU integration, having joined the EU and NATO in 2004. Latvia's economy, while facing challenges such as skilled labor shortages and a large informal sector, is bolstered by robust sectors including services, industry, and agriculture.

Geography

Latvia is situated in Eastern Europe, with a total area of 64,589 sq km, making it slightly larger than West Virginia. The country boasts a 498 km coastline along the Baltic Sea and shares land borders with Estonia, Lithuania, Belarus, and Russia. The terrain primarily consists of low plains, with the highest point being Gaizina Kalns at 312 m. The climate is maritime, featuring wet and moderate winters.

31.7% of land is agricultural (2022 est.)
54.9% of land is covered by forests (2022 est.)
6 sq km of irrigated land (2016)
Major natural resources include peat, limestone, and timber

People and Society

As of 2024, Latvia's population is estimated at 1,801,246, with 62.7% identifying as Latvian and 24.5% as Russian. The population is notably urban, with 68.7% residing in urban areas. The median age is 45.5 years, and the country faces demographic challenges with a negative population growth rate of -1.14%. The predominant language is Latvian, while various religious beliefs are present, including Lutheranism, Roman Catholicism, and Orthodoxy.

22.5% of the population lived below the national poverty line (2022 est.)
8.3 births per 1,000 population (2024 est.)
76.4 years is the life expectancy at birth (2024 est.)
3.4 physicians per 1,000 population (2022)

Economy

Latvia has a diverse economy characterized by high-income status and membership in the EU and eurozone. The GDP as of 2024 is projected at $43.521 billion, while GDP per capita stands at $38,900. Key sectors include services at 63.1%, industry at 19.9%, and agriculture at 4.1%. The economic landscape is currently recovering from a contraction, facing challenges such as labor shortages and a large informal sector.

6.8% unemployment rate (2024 est.)
66.5% of GDP from exports (2023 est.)
$28.117 billion exports projected for 2024
$29.234 billion imports projected for 2024

Government

Latvia operates as a parliamentary republic, with Riga as its capital. The government structure features an indirectly elected president and a prime minister confirmed by parliament. The country has 36 municipalities and 7 state cities, with a legal system rooted in civil law traditions. Latvia's constitution has evolved since its independence in 1991 and includes provisions for democratic participation.

100 seats in the unicameral Parliament (Saeima)
Citizens can vote at 18 years of age
Edgars RINKEVICS currently serves as president (since July 2023)
Evika SILINA is the prime minister (since September 2023)

Military and Security

Latvia maintains a National Armed Forces responsible for national defense and domestic security, including the land, naval, and air forces. Military expenditure is projected at 3.2% of GDP in 2024. The country has a small active military force of approximately 8,000 personnel and relies on NATO for external security. Recent reforms include mandatory military service introduced in 2024.

135 military personnel deployed to Kosovo (2024)
10,000 National Guard members (2024)
Conscription for men ages 18-27 (2024)
Military service is voluntary for both men and women

Energy

Latvia has successfully achieved 100% electricity access for its population. The electricity sector relies heavily on renewable sources, particularly hydroelectricity, which accounts for 59.3% of its energy generation capacity. The country is also working towards increasing its renewable energy footprint amidst rising consumption demands.

3.428 million kW of installed generating capacity (2023 est.)
6.822 billion kWh electricity consumption (2023 est.)
786.523 million cubic meters of natural gas consumed (2023 est.)
22.4% of electricity generation from fossil fuels (2023 est.)

Environment

Latvia faces environmental challenges, including soil and water pollution, but is a party to multiple international environmental agreements. The country has made efforts to improve waste recycling and manage its natural resources sustainably, with a significant portion of land allocated to forests and agriculture.

34.94 billion cubic meters of total water resources (2020 est.)
21.2% of municipal waste recycled annually (2015)
12.02 micrograms of particulate matter emissions per cubic meter (2019 est.)
857,000 tons of municipal solid waste generated annually (2015 est.)

Transportation

Latvia's transportation network includes 55 airports and extensive rail systems. The merchant marine has a total of 83 vessels, providing crucial support for trade and logistics. The country’s road and rail infrastructure facilitates connectivity across the region.

2,216 km of railway, with 257 km electrified (2020)
5 ports accommodating various shipment types (2024)
489,000 fixed broadband subscriptions (2023 est.)
2.26 million mobile cellular subscriptions (2023 est.)

Communications

Latvia enjoys high connectivity, with 92% of its population using the internet. The telecommunications sector features competitive mobile and fixed-line services, supported by both national and international operators.

142,000 fixed-line subscriptions (2023 est.)
117 subscriptions per 100 inhabitants for mobile cellular (2022 est.)
489,000 total broadband subscriptions (2023 est.)

Key Metrics

Metric	Value	Note
Population	1,801,246	2024 est.
Area	64,589 sq km
GDP	$43.521 billion	2024 est.
GDP per capita	$38,900	2024 est.
Energy consumption	6.822 billion kWh	2023 est.
Unemployment rate	6.8%	2024 est.
Birth rate	8.3 births/1,000	2024 est.
Life expectancy at birth	76.4 years	2024 est.
Urban population	68.7%	2023 est.
Inflation rate	1.3%	2024 est.