Latvia joined the European Union in 2004
Capital city:Riga
Population:2,231,503 (July 2009 est.).
Currency:Lats
Language:Latvian
Latvia's economy experienced GDP growth of more than 10% per year during 2006-07, but entered a severe recession in 2008 as a result of an unsustainable current account deficits and large debt exposure amid the softening world economy. The IMF, EU and other donors provided assistance to Latvia as part of an agreement to defend the currency's peg to the euro and reduce the fiscal deficit to about 5% of GDP. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organization in February 1999. The current account deficit and inflation remain major concerns.
GDP - composition by sector
agriculture: 3.1%
Industry: 22.7%
Services: 74.2% (2008 est.).
Source: CIA
