FACTS & FIGURES

Latvia: a keystone of the 'New Europe'

Latvia is a keystone of Northern Europe's Baltic Seas region. On the world map Latvia can be found in North-Eastern Europe, on the east coast of the Baltic Sea. A country with a language, culture and attitude all its own, yet with a national identity shaped by the surrounding dynamic Northern European region and woven through with diverse historical influences. A country that survived two world wars and 50 years behind the Iron Curtain, in 2011 entered its third decade of renewed independence. In 2004 it became a member of NATO and the European Union. In December 2007 it became a member of the Schengen area. On January 1, 2014 the country adopted the euro currency and in July 2016 became a member of the OECD.

Latvia: where is it?

Latvia is in Northern Europe and borders Estonia, Russia, Belarus, and Lithuania. It is situated on a trading crossroads and has long since served as a bridge between Western Europe and Russia. The famous 'route of the Vikings to the Greeks' mentioned in ancient chronicles stretched from Scandinavia through Latvian territory along the Daugava River to the ancient Russian and Byzantine Empire. Latvia is about 64, 000 sq km in size - about the size of West Virginia or Lake Superior !

Latvians?

The population of Latvia today is around 2.0 million. About the size of the population of Nebraska !The ethnic composition is around 62% Latvian, 28% Russian, 3.4% Belarusian, 2.3% Ukrainian, 2.2% Polish and 1.5% Lithuanian. The diverse ethnic mix of the population of Latvia is largely the result of massive post-war immigration, which resulted in a decline in the share of ethnic Latvians from 77% in 1935 to around 62% today. There are more than 1.65 million ethnic Latvians in the world, and approximately 450,000 live outside Latvia. Latvians can be found in the USA, the UK, Australia, Canada, Germany, as well as Brazil, Lithuania, Sweden, Estonia, Ireland and Russia. In fact, there is hardly a country in the world where Latvians have not made their presence felt. Even if you have not yet visited Latvia, you stand a good chance of meeting a Latvian somewhere else. Almost 95,000 people of Latvian descent live in the U.S. today, the largest concentration being in the North-East and Mid-West States.

The Latvian language

As one of 200 major languages in the world (spoken by more than 1 million people), the Latvian language is also one of the oldest. Latvian belongs to the Indo-European language family, and together with Lithuanian, forms the Baltic language group, related to, but separate from the Slavic and Germanic language groups. The total number of Latvian speakers in the world exceeds 2 million, and for 1.5 million of them it is their native language.

Latvia's flag: one of the oldest in existence

The Latvian flag is one of the oldest in the world. Written records of the red-white-red Latvian flag have existed since the second half of the 13th century. The distinctive dark red color of the Latvian flag is sometimes referred to, by the rest of the world, as 'Latvian red'.

Latvia: from 2000 BC to 2024 AD

The forefathers of the Latvian people first arrived in the Baltic region in 2000 BC. In the 9th century AD the ancient Balts began to establish specific tribal realms. The territory of modern Latvia was inhabited by four major Baltic tribal cultures - the Couronians, Latgallians, Selonians and Semigallians, and a Finno-Ugric tribe, the Livs. In the 13th century Latvia was invaded by armed Germanic crusaders, who founded Riga and established control over the indigenous people and territory. Over the ensuing centuries, traders and invaders from Germany, Poland, Sweden and Russia established a presence in Latvia, alongside the local Latvian and Liv inhabitants.

In the late 19th century Latvia was politically ruled by Russia and economically controlled by Baltic Germans, yet the majority of Latvia's inhabitants were ethnic Latvians and descendants of the original Baltic and Liv tribes. In November 1918, the Latvian people finally established the Latvian state.

During WW II Latvia suffered three invasions and occupations. As many as 120,000 Latvians were deported to Soviet concentration camps in Siberia, 140,000 fled to the West, and thousands more perished or disappeared in the conflict. During the Soviet occupation between 1940 and 1991, hundreds of thousands of Soviets of various nationalities were brought into Latvia, reducing the indigenous ethnic Latvian population to nearly 50%.

In 1990, the people of Latvia elected a majority of pro-independence deputies to what was then the ruling Soviet parliamentary body, the Supreme Council of Latvia. The new Supreme Council voted to begin the political process of removing Soviet rule and restoring full independence to Latvia. On 21 August 1991, following the collapse of the Soviet Union, the Latvian Supreme Council adopted a resolution for the full restoration of Latvian independence. The Supreme Council was abolished in late 1992, paving way for the first post-independence Latvian parliament, elected on 5-6 June 1993.

The new 5th Saeima, continuing the link with the pre-war parliaments of Latvia, elected Guntis Ulmanis the new President of the Republic of Latvia in 1993. Re-elected in 1996, President Ulmanis was followed by Dr. Vaira Vike-Freiberga. Dr. Vike-Freiberga was elected as President in 1999 and re-elected for a second term in 2003. Dr. Valdia Zalters was President from July 2007 to July 2011; Mr. Andris Berzins, July 2011 to July 2015; Mr. Raimonds Vejonis, July 2015 - July 2019, and Dr. Egils Levits July 2019 to July 2023. Mr.Edgars Rinkēvičs is the current President of Latvia having assumed office on July 9, 2023. For more information about the President of Latvia, please visit www.president.lv.

In Latvia's parliamentary democracy, the President appoints a Prime Minister (who must be approved by the Saeima) and signs laws into power. Ms. Evika Siliņa is the current Prime Minister, taking office on September 15, 2023.

For more information about the current Latvian government please visit www.mk.gov.lv.

For more information about the history of Latvia, please visit www.latvia.eu.

Latvia: a foreign policy success story

Latvia's foreign policy, like its economic policy, has been one of the success stories of the post Cold War era. Latvia is a member of the UN and gained EU and NATO membership in 2004. Special ties have always existed with the United States, which never recognized the legitimacy of Soviet rule in Latvia following WW II. Latvia's first diplomatic mission in the US was established in 1922 and continued to function in Washington D.C. throughout the 50 years of Soviet occupation. Full diplomatic ties were renewed in 1991 when President George H.W. Bush was President. Subsequently, Presidents Bill Clinton and George W. Bush have sought an active partnership with Latvia, with President Clinton visiting Riga in 1994 with Mrs Hillary Rodham Clinton, and President George W. Bush in 2005 and in 2006.

For more information about Latvia's foreign policy and the Ministry of Foreign Affairs, please visit www.mfa.gov.lv

Latvia in the international arena

Latvia's commitment to global cooperation is reflected in its membership of the UN, EU, WTO, World Bank, IMF, WHO, OECD, Schengen area, and other international bodies. Latvia has actively participated in NATO and EU-led international operations, including Macedonia, Bosnia-Herzogovina, Kosvo, and Afghanistan. Latvia is steadily expanding its ties with all regions of the global community. It has 35 diplomatic missions around the world, with embassies and trade offices in most countries. In the first half of 2015, Latvia hosted the Presidency of the European Union and in July 2016 joined the OECD.

Latvia has ranked at the forefront among the countries that have donated the most to Ukraine in relation to the country's gross domestic product (GDP)

According to data from the Kiel Institute for World Economy, Latvia has donated 0.98% of the country's GDP to Ukraine from January 24, 2022 to January 24, 2023, ranking #2, just behind Estonia which ranks first with 1.07% of its GDP. Lithuania, with 0.65% of the country's GDP, ranks third among the most active donors.

Latvia has donated EUR 313 million, which is the 20th highest indicator in the world. Most of Latvia's donation, €295 million, is directly for military purposes, the 15th highest in the world.

More than half of Latvia's population say they have donated to Ukraine in one way or another, and on a per capita basis

LATVIA AND THE UNITED STATES: CELEBRATING 100 YEARS OF DIPLOMATIC RELATIONS IN 2022

Shortly after Latvia's modern statehood was established on November 18, 1918, the United States Senate passed a resolution supporting the secession of Estonia, Latvia and Lithuania from Russia. Over the next few years, the United States Government steadily increased its diplomatic presence in Latvia, culminating in the official recognition of Latvia on July 28, 1922. During the years leading up to World War II, economic, trade and cultural relations between Latvia and the U.S. flourished, and the two countries consolidated their diplomatic relations, signing several bilateral agreements.

In response to the Soviet Union’s illegal occupation of the three Baltic countries in June 1940, U.S. Acting Secretary of State Sumner Welles issued a strongly worded declaration on July 23, 1940, which set the course of Baltic-U.S. relations for the next five decades – namely, the United States’ steadfast refusal to recognize the Soviet annexation of the Baltic countries.

The United States-based diplomatic representatives of the Baltic countries continued to enjoy full diplomatic recognition by the United States until the collapse of the Soviet Union in 1991, at which point the U.S. officially recognized the governments of the again independent Baltic countries. Notably, the Legation of Latvia in Washington was the only Latvian foreign mission that functioned continually throughout the years of Soviet occupation, thereby reminding the international community of the Latvian Government’s continued de iure or legal existence.

As Latvia’s pro-independence movement gained momentum in the late 1980s, the United States Department of State cooperated closely with Latvia’s diplomatic representatives in Washington, leading to the first unofficial contacts between Latvia’s transitional government and the United States in 1990. Latvia formally regained its independence in August 1991, and the Latvian and United States. Governments reestablished active diplomatic relations on September 5, 1991.

Since the formal restoration of Latvian-United States relations, the two countries have continued to consolidate their political, economic, trade and cultural relations, building on the foundations laid during the 1920s and preserved throughout the Cold War years. The process of NATO enlargement that led to Latvia’s accession to NATO in 2004 has brought the two countries even closer together by adding a new dimension to Latvian-United States relations.

On April 3, 2018, the Presidents of Latvia, Estonia and Lithuanian met with the United States President at the White House for a summit and for the marking of the Centennial of all three Baltic countries.

Latvia's economy:  rapid evolution since 1991, now in the Eurozone, and one of the MOST CONSISTENT performing economieS IN EUROPE

After regaining its independence in 1991, Latvia has evolved into one of the most dynamic and fastest growing economies in all of Europe.

Today, the economy’s main economic sectors are services (74%), comprising logistics, IT, financial services and trade; and manufacturing (15%), comprising wood, metal, pharmaceuticals, chemicals and food. Exports represent today around 15% of GDP (with wood products being the largest contributor, comprising 19%), with the largest markets being Europe (65%), UK (6%), Russia (8%), CIS (4%). In CY 2021, the U.S. imported around $680 mil of goods from Latvia and exported to Latvia around $415 mil of goods.

Over the period 1995-2007 Latvia's economy grew by an average of 7.6% per annum. This phenomenal success was in part due to rapid price and trade liberalization, extensive small and large-scale privatization and rapid financial sector reform since the early 1990's. Assisted by exuberant foreign investor inflows and in hindsight loose domestic fiscal policy, during 2005-2007 Latvia was the fastest growing economy in Europe. In 2008-2009 as the effects of the global economic slowdown started to impact and the ensuing global credit crisis hit hard. Latvia’s growth pace slowed sharply - not a surprising result given the open nature of the Latvian economy and its dependence on global trade and financial flows. The economy experienced a very sharp recession (GDP fell -17.7%) before recovering in the first half of 2010.

Latvia’s recovery from this very sharp slump has been noted internationally as a textbook success-story. Latvia's decision to tighten its fiscal belt, cut wages, and not devalue its currency (which was then pegged to the euro) was questioned by many – but in the end was a successful recipe, putting the economy back onto a solid growth path that is is benefiting from today.

During the 2017-2019 recovery phase, the Latvian economy recorded one of the strongest growth rates in the EU, averaging 2.9%/year, driven by strong manufacturing output, retail trade and construction activity.

In 2020 growth, as a result of the Covid-19 global health crisis, Latvia experienced a pull back like many European countries (-2.2%). However, this was followed by a strong rebound in 2021 (+4.1%) and a pause during 2023. The stalling in growth last year was a result of weak consumer confidence and sluggish demand in the neighboring economies (Estonia and Lithuania).

The Bank of Latvia in its latest March 2024 review forecasts a sluggish this year due to prevailing weak demand from Latvia's main trade partners. The low inflation facilitates recovery of consumption and the government investment fuels overall investment growth in Latvia, whereas external demand has weakened. Consequently, the short-term GDP growth forecast for 2024 has been revised to 1.8%, down from 2.0% projected in the December 2023 forecast. The GDP growth forecasts for 2025 and 2026 remain unchanged compared with the December forecasts – at 3.6 % and 3.8 % respectively. With the external economic environment improving, exports are expected to expand, thereby providing stronger momentum for growth.

International credit ratings agencies like Standard & Poor’s (A+, negative outlook), Moody’s (A3, stable) and Fitch (A1, table) continue to view Latvia’s fiscal and budgetary management in a good light, reaffirming the international recognition Latvia has earned over the past decade in undertaking numerous major economic reforms Latvia.

On January 1, 2014, Latvia became the 18th member state to join the euro currency block. Previously its currency was the lats, which was pegged to the euro from 1994.

In July 2016, Latvia became a member of the OECD.

For more detailed and up to date information on the Latvian economy, please visit the Latvian State Treasury website here.

Latvia: a business hub in the 'New Europe'

With its prime location as a transit hub for east-west trade, skilled and motivated talent pool, modern infrastructure, cost-effective business environment and strong startup ecosystem, Latvia has become one of the most favorable destinations for foreign investment in the 'New Europe'.

Sectors attracting investors include manufacturing, forestry and woodworking, metal processing and engineering, textiles, chemicals, pharmaceuticals, logistics and transit, construction and real estate, and information technology.

For more information about business investment opportunities in Latvia visit the Latvian Investment and Development Agency (LIAA) website - click here. LIAA now has a dedicated representative here in the United States - click here for contact information.

Latvia and Europe: key trading partners

The European Union accounts for close to 80% of Latvia's total trade. Latvia's major trading partners include Germany, Sweden, the UK, Poland, Russia and its Baltic neighbors Estonia and Lithuania.

Latvia: some of the lowest taxes in Europe

Latvia has one of the lowest tax burdens in Europe: corporate tax rate at a flat 20% and individual tax rates of 20/23/31.4%. For more information please visit the Finance Ministry website.

Latvia's currency: from the lat to the euro

After Latvia regained its independence in 1991, the Latvian currency, the lat, was one of the most stable currencies in Europe. After joining the EU, in 2005 Latvia joined the European Monetary Union, and the lat was pegged to the euro (1 LVL = 0.702804 EUR). On January 1, 2014, Latvia joined the euro currency group. The Bank of Latvia is independent from the government in Latvia and is now part of the ECB and Euro-system. It's major goal is price stability, so as to help foster a strong, growth-orientated economy.  For further information about Latvian monetary policy, the economy, and the euro please visit the Bank of Latvia website.

RIX: Latvia's fast growing international airport and the key hub in the baltics & NORTHERN EUROPE

RIX - Riga's International Airport - is rapidly emerging as a new strategic hub for international tourist, business and related travel in the Northern Europe, and is now one of the top 5 fastest growing airports in Europe. Latvia can be reached from the U.S. via convenient connections through most European capital cities, including Helsinki, Copenhagen, Stockholm, Amsterdam, Frankfurt, Paris, Zurich, Vienna, as well as via London. Riga airport is served by 20 airlines and offers flights to 100 destinations in Europe and beyond during the summer peak season and to about 70 destinations during the winter season. A record 7.8 million passengers traveled through Riga's airport in 2019, on 87,000 flights. After a Covid-19 induced slump in global air traffic, Riga airport in 2022 saw traffic levels recover quickly to 5.4 million passengers. Riga airport is recognized as the 4th most punctual airport in the world (medium-sized airports). As the global travel sector recovers from the Covid-19 pandemic, plans are in place to expand the airport’s capacity in the coming years to 12 million passengers. Riga Airport is also home to Latvia's national carrier, Air Baltic, serving close to 60 destinations from Riga to Scandinavia, Western and Southern Europe, the UK and Ireland, the Mid-East and Central Asia. For further information please visit the Riga Airport website.

Latvia's capital, Riga: The 'Paris of the North'

One hundred years ago Riga was known as the 'Paris of the North'. 800 years young, Riga is now called 'The Second City that Never Sleeps', and the 'Hottest City in the North'. As it moves into the 21st century, Riga is blossoming as a creative center for the arts once again. Local and visiting art exhibits and the opera, theater and ballet compete with nightclubs and discos that rock with jazz, blues and the latest electronic fusions of hip hop and dance music. For more information about Riga, please visit the Riga City tourism website (or see the Videos in the Resources section of this website). In 2014 Riga was designated European Capital of Culture.

Riga: Art Nouveau capital of the world

Riga is architecturally considered to be the Jugendstil capital of the world. Latvian architects are responsible for designing over 60% of the distinctive Art Nouveau style buildings made famous in the early 1900's.

Riga: a UNESCO designated cultural and natural site

Nearly one-third of Latvia's population (650,000) lives in the capital Riga. Riga, the oldest existing medieval city, was founded in 1201. Riga has been included in UNESCO's list of the world's most important cultural and natural sites.

Latvia's National Day

November 18 is Latvia's National Holiday. Latvia's independence was proclaimed in Riga on November 18, 1918. Following WW II, Latvia was occupied by the Soviet Union between June 17, 1940 and May 4, 1990. In 2018 Latvia will celebrate its centenary since becoming a republic.

Latvia: one of the greenest countries in Europe

Latvia's landscape is marked by lowland plains, rolling hills, thousands of rivers and lakes. Forests cover 44 percent of the territory, and most of the countryside is less than 100 meters above sea level.

Latvians: world class performers in New York - on stage and on the court

World famous Latvian performers like Elina Garanca, Maija Kovaleska, Marina Rebeka, Kristine Opolais, Aleksandrs Antonenko, Gidons Kramers have all performed at New York's Carnegie Hall and the Lincoln Centre and regularly return there each season. Latvian-born Mikhail Baryshnikov has established his own performing arts center here in NYC (BAC).  Grammy Award winning conductor Andris Nelsons and the Boston Symphony Orchestra regularly perform at Carnegie Hall. In 2005 and 2006 the winner of the NYC Marathon was Jelena Prokopcuka, also from Latvia, returning in 2014 to finish in 4th position. Latvian basketball star Kristaps Porzingis started his NBA career with the NY Knicks and was voted into the NBA All Star team in 2018 - the first Latvian ever to win this award.

For more information on Latvia, please visit: investinlatvia.org