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Contact Admin. Latvia is a small, open economy with exports contributing more than half of GDP. Due to its geographical location, transit services are highly-developed, along with timber and wood-processing, agriculture and food products, and manufacturing of machinery and electronics industries. Corruption continues to be an impediment to attracting foreign direct investment and Latvia's low birth rate and decreasing population are major challenges to its long-term economic vitality.
Continued gains in competitiveness and investment will be key to maintaining economic growth, especially in light of unfavorable demographic trends, including the emigration of skilled workers, and one of the highest levels of income inequality in the EU. In the wake of the crisis, the IMF, EU, and other international donors provided substantial financial assistance to Latvia as part of an agreement to defend the currency's peg to the euro in exchange for the government's commitment to stringent austerity measures.
Latvia also joined the euro zone in and the OECD in Russia demands better Latvian treatment of ethnic Russians in Latvia; boundary demarcated with Latvia and Lithuania; the Latvian parliament has not ratified its maritime boundary treaty with Lithuania, primarily due to concerns over oil exploration rights; as a member state that forms part of the EU's external border, Latvia has implemented the strict Schengen border rules with Russia.
Europe :: Latvia. Introduction :: Latvia. Several eastern Baltic tribes merged in medieval times to form the ethnic core of the Latvian people ca. The region subsequently came under the control of Germans, Poles, Swedes, and finally, Russians.
Latvia reestablished its independence in following the breakup of the Soviet Union. A dual citizenship law was adopted in , easing naturalization for non-citizen children. Geography :: Latvia. Geographic coordinates:. Map references:. Area - comparative:. Europe :: Latvia Print. Image Description. Land boundaries:. Maritime claims:.