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LATVIA
Year of EU entry 2004
Political system Republic
Capital city Riga
Total area 65,000 km2
Population 2.3 million
Currency Lats |
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Overview
Latvia regained independence from the Soviet Union in 1991. Situated on the Baltic coast, Latvia is a low-lying country with large forests that supply timber for construction and paper industries. The environment is rich in wildlife. Latvia also produces consumer goods, textiles and machine tools. The country attracts tourists from all over Europe. Ethnically, the population is 59% Latvian and 29% Russian, and more than a third live in the capital Riga. Founded in 1201, Riga is the largest city in the three Baltic states with a population of 730,000. Its Freedom Statue is one of the highest in Europe, at 43 metres.
The 100-seat unicameral Latvian Parliament, the Saeima, is elected by direct, popular vote every four years. The president is elected by the Parliament, also every four years.
Among the best-known Latvians are the expressionist painter Mark Rothko and the contemporary composer Peteris Vasks.
Characteristic specialities of Latvian cuisine are speka piradzini (bacon pies) and a refreshing cold sour cream soup.
Economy
Latvia's transitional economy recovered from the 1998 Russian financial crisis, largely due to the government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Latvia's trade dependency on Russia. The majority of companies, banks, and real estate have been privatised, although the state still holds sizable stakes in a few large enterprises. Latvia officially joined the World Trade Organisation in February 1999. EU membership, a top foreign policy goal, came in May 2004. The current account and internal government deficits remain major concerns, but the government's efforts to increase efficiency in revenue collection may lessen the budget deficit. A growing perception that many of Latvia's banks facilitate illicit activity could damage the country's vibrant financial sector.
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