Discusses key economic indicators and trade statistics, which countries are dominant in the market, the U.S. market share, the political situation if relevant, the top reasons why U.S. companies should consider exporting to this country, and other issues that affect trade, e.g., terrorism, currency devaluations, trade agreements.
Last Published: 6/4/2019

Latvia is a member of the European Union, NATO, Eurozone, and the Organization for Economic Cooperation and Development (OECD).

Geographically, Latvia is a natural gateway between the United States, the EU, Russia, and Asia, with highly developed port, rail, and other transport infrastructure.

Latvia provides various tax, labor, and R&D incentives to foreign investors.
Latvia offers significant cost advantages to investors, including competitive labor and real estate expenses and competitive tax rates.

Foreign and domestic investments in Latvia are treated equally under the law.
According to the European Commission, Latvia’s GDP grew by 4.8 percent in 2018 and is forecast to grow by 3.1 percent in 2019. 

According to the U.S. Census Bureau’s Foreign Trade Division, the main exports to Latvia from the United States in 2018 were civilian aircraft, computer and electronic products, and alcoholic beverages.
Latvia’s main trading partners are Lithuania (16.81% of Latvia’s total trade turnover), Estonia (9.31%), and Germany (9.03%), while the United States is the 12th largest partner in trade in goods.  In 2017, Latvia’s biggest trading partners were Lithuania (18% of Latvia's total trade turnover), Germany (9%), Estonia (9%), Russia (8%) and Poland (7%).

The EU spring forecast released on 7 May 2019 predicts that economic growth will slow down mainly due to decreases in investment growth, but the transition from economic recovery to expansion will continue.  The EU area grew by 1.9% in 2018, and is expected to grow by 1.5% in 2019.  The Euro area real GDP is forecast to grow by 1.2% in 2019, which is 0.7% lower than predicted in the 2018 autumn forecast and below its long-run trend for the first time since 2013.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.