GDP growth is strong and income convergence continues
The working age population is shrinking fast
Emigrants are relatively less skilled
Poverty is high
Latvia lags behind in some dimensions of well-being
Investment and consumption contribute to GDP growth
Unemployment is falling and vacancies are rising
Wage growth is strong, but inflation remains stable
Unit labour costs are rising, but profitability remains strong
Latvia has diversified its trading partners
Exports have become more sophisticated
Credit growth remains weak
Corruption indicators
House prices are rising in line with income growth
Non-bank loans are rising fast, as many households have problems re-paying debt
The share of foreign deposits in the Latvian banking sector is falling
Illustrative public debt paths
Tax revenues are relatively low as a share of GDP
The tax-and-benefit system could do more to lower high inequality
Taxation of labour income will decrease for some households
Regional disparities are large
The average size of municipalities is small
Informality is widespread
Trust in national institutions is low
The poverty rate for elderly people is high
Life expectancy remains low and unequal
Many Latvians skip doctors’ appointments to avoid high out-of-pocket payments
The renewable energy share is high and CO2 intensity is relatively low
Energy intensity and population exposure to pollution need to fall further
Many families live in substandard housing
Higher building energy efficiency would bring benefits for well-being
Commuting by car has increased substantially
Effective tax rates on CO2 are relatively low
The share of landfill in municipal waste treatment remains high
Road accident fatalities are high