IMD World Competitiveness Booklet 2020

COMPETITIVENESS TRENDS - OVERALL LATVIA

OVERALL PERFORMANCE (63 countries)

BASIC FACTS Capital Land area (square km '000)

Rank

Riga

2016 2017 2018 2019 2020

65 2019

37

0.893 2019 1.92 2019 34.1 2019 30,977 2019 2.2 2019 2.75 2019 6.50 2019 0.97 2019 -0.52 2019 17.3 2018 2.64 2019

40

40

40

Exchange Rate (per $)

41

59

Population - market size (millions)

CHALLENGES IN 2020 Covid-19 crisis and recovery from it. Banking sector reform. • Covid-19 crisis and recovery from it. • Banking sector reform. • Territorial reform and growth in peripheral regions. • Increase in wages and insufficient productivity. • Increase in inequality due to low redistribution through the tax and benefit system.

59

Gross Domestic Product (GDP) (US$ billions)

40

GDP (PPP) per capita (US$)

28

Real GDP growth (%)

43

Consumer price inflation (%)

43

Unemployment rate (%)

59

Labor force (millions)

38

Current account balance (% of GDP)

61

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

22

24

26

26

30 32

32

33

34

37

37

38

43 43

44

51

51

52

54

62

PEER GROUPS RANKINGS EUROPE - MIDDLE EAST - AFRICA (40 countries)

POPULATIONS < 20 MILLION (34 countries)

2016 2017 2018 2019 2020

2016 2017 2018 2019 2020

24

22

24

27

27

27

27

25

25

25

85

IMD WORLD COMPETITIVENESS BOOKLET 2020