IMD World Competitiveness Booklet 2023

Latvia Competitiveness Trends – Overall

OVERALL PERFORMANCE (64 countries)

BASIC FACTS

Rank

2019

2020

2021

2022

2023

Capital Land area (square km '000)

Riga

65 2022

0,950 2022

35

Exchange rate (per $)

38

40

41

1,88 2022 59 41,2 2022 59 38.397 2022 44 2,0 2022 56 17,25 2022 58 7,10 2022 49 0,95 2022 59 -6,53 2022 56 23,7 2021 59 9,37 2021 08

51

Population - market size (millions)

Gross Domestic Product (GDP) (US$ billions)

CHALLENGES IN 2023

GDP (PPP) per capita (US$)

• Geopolitical environment and willingness of investors to continue investing in Latvia. • High inflation, creating pressure on salaries and labor costs. • Risk of recession if the economic situation in the region continues to deteriorate. • Ability of entrepreneurs to transform, innovate, and integrate digital technologies. • Economic security, in light of Russia’s military aggression in Ukraine and its consequences.

Real GDP growth (%)

Consumer price inflation (%)

Unemployment rate (%)

Labor force (millions)

Current account balance (% of GDP)

Direct investment stocks inward ($bn)

Direct investment flows inward (% of GDP)

PROVIDED BY: University of Latvia Center for European and Transition Studies, LU CETS

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 & Values

Basic Infrastructure

Technological Infrastructure Scientific Infrastructure

Health & Environment Education

35

35 30

38 37 41 37 43

40

41

49 50

50

51 52

57

59 60 57

59

PEER GROUPS RANKINGS EUROPE - MIDDLE EAST - AFRICA (41 countries)

POPULATIONS < 20 MILLION (37 countries)

2019

2020

2021

2022

2023

2019

2020

2021

2022

2023

22

23

24

24

25

25

27

27

32

36

90 Competitiveness Country Profiles