Latvia

About Latvia

Background:

The name "Latvia" originates from the ancient Latgalians, one of four eastern Baltic tribes that formed the ethnic core of the Latvian people (ca. 8th-12th centuries A.D.). The region subsequently came under the control of Germans, Poles, Swedes, and finally, Russians. A Latvian republic emerged following World War I, but it was annexed by the USSR in 1940 - an action never recognized by the US and many other countries. Latvia reestablished its independence in 1991 following the breakup of the Soviet Union. Although the last Russian troops left in 1994, the status of the Russian minority (some 30% of the population) remains of concern to Moscow. Latvia joined both NATO and the EU in the spring of 2004.

PEOPLE

Population:
2,231,503 (July 2009 est.)
country comparison to the world: 141

Nationality:
noun: Latvian(s)
adjective: Latvian

Ethnic groups:
Latvian 57.7%, Russian 29.6%, Belarusian 4.1%, Ukrainian 2.7%, Polish 2.5%, Lithuanian 1.4%, other 2% (2002)

Religions:
Lutheran 19.6%, Orthodox 15.3%, other Christian 1%, other 0.4%, unspecified 63.7% (2006)

Languages:
Latvian (official) 58.2%, Russian 37.5%, Lithuanian and other 4.3% (2000 census)

GOVERNMENT

Country Name:
conventional long form: Republic of Latvia
conventional short form: Latvia
local long form: Latvijas Republika
local short form: Latvija
former: Latvian Soviet Socialist Republic

Government type:
parliamentary democracy

Capital:
name: Riga
geographic coordinates: 56 57 N, 24 06 E
time difference: UTC+2 (7 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October

Independence:
18 November 1918 (from the Soviet Russia)

Flag description:
three horizontal bands of maroon (top), white (half-width), and maroon; the flag is one of the older banners in the world; a medieval chronicle mentions a red standard with a white stripe being used by Latvian tribes in about 1280

ECONOMY

Economy - overview:
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 deficit and large debt exposure amid the softening world economy. GDP plunged nearly 18% in 2009 - the three former Soviet Baltic republics had the world's worst declines last year. 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. EU membership, a top foreign policy goal, came in May 2004. The budget-deficit remains a major concern.

GDP (purchasing power parity):
$32.4 billion (2009 est.)
country comparison to the world: 105
$39.42 billion (2008 est.)
$41.32 billion (2007 est.)
note: data are in 2009 US dollars

GDP - per capita (PPP):
$14,500 (2009 est.)
country comparison to the world: 79
$17,600 (2008 est.)
$18,300 (2007 est.)
note: data are in 2009 US dollars

Budget:
revenues: $9.501 billion
expenditures: $12.15 billion (2009 est.)

Inflation rate (consumer prices):
3.3% (2009 est.)
country comparison to the world: 98
15.4% (2008 est.)

Industries:
buses, vans, street and railroad cars; synthetic fibers, agricultural machinery, fertilizers, washing machines, radios, electronics, pharmaceuticals, processed foods, textiles; note - dependent on imports for energy and raw materials
Exports:
$6.721 billion (2009 est.)
country comparison to the world: 94
$9.634 billion (2008 est.)

Imports:
$8.849 billion (2009 est.)
country comparison to the world: 91
$15.65 billion (2008 est.)

Exchange rates:
lati (LVL) per US dollar - 0.5157 (2009), 0.4701 (2008), 0.5162 (2007), 0.5597 (2006), 0.5647 (2005)