IMD World Competitiveness Booklet 2021

COMPETITIVENESS TRENDS - OVERALL LATVIA

OVERALL PERFORMANCE (64 countries)

BASIC FACTS Capital Land area (square km '000)

Rank

Riga

2017 2018 2019 2020 2021

65 2020

38

0.876 2020 1.91 2020 33.5 2020 31,490 2020

Exchange Rate (per $)

40

40

40

41

60

Population - market size (millions)

CHALLENGES IN 2021 Economic slowdown and rising unemployment due to the COVID- 19 crisis. • Economic slowdown and rising unemployment due to the COVID-19 crisis. • The effectiveness of the vaccination process and restrictions towards the spread of COVID-19. • Municipal elections and results of the territorial reform. • Smart decisions and investments in Green growth using EU support and stimulus funds. • Increase in social inequality, as well as inequality between regions.

59

Gross Domestic Product (GDP) (US$ billions)

39

GDP (PPP) per capita (US$)

-3.6 2020 0.08 2020 8.40 2020 0.97 2020 2.95 2020 17.9 2019 3.11 2019

22

Real GDP growth (%)

19

Consumer price inflation (%)

47

Unemployment rate (%)

60

Labor force (millions)

24

Current account balance (% of GDP)

62

Direct investment stocks inward ($bn)

University of Latvia Centre for European and Transition Studies, LU CETS Pro ided by: University of Latvia Centre for European and Transition Studies, LU CETS

22

Direct investment flows inward (% of GDP)

COMPETITIVENESS LANDSCAPE

Economic Performance

Government Efficiency

Business Efficiency

Infrastructure

Domestic Economy

International Trade

International Investment Employment Prices

Public Finance

Tax Policy

Institutional Framework Business Legislation

Societal Framework

Productivity & Efficiency Labor Market Finance

Management Practices

Attitudes and Values

Basic Infrastructure

Technological Infrastructure Scientific Infrastructure

Health and Environment Education

16

23

23

24

27

29 32

31

33

36

37

40 42

41

41

45

45

50

56

58

PEER GROUPS RANKINGS EUROPE - MIDDLE EAST - AFRICA (41 countries) 25 2017 2018 2019 2020 2021

POPULATIONS < 20 MILLION (35 countries)

2017 2018 2019 2020 2021

24

24

25

25

25

27

27

27

27

84

IMD WORLD COMPETITIVENESS BOOKLET 2021