:
Ambassador Ints M, SILINS;
embassy:
Raina Boulevard 7, Riga 226050
mailing address:
APO AE 09862
telephone:
0-11 [358] (49) 311-348 (cellular)
FAX:
[358] (49) 314-665 (cellular), (7) (01-32) 220-502
note:
dialing to the Baltics still requires use of an international operator,
unless you use the cellular phone lines
Flag:
two horizontal bands of maroon (top and bottom), white (middle, narrower
than other two bands)

*Latvia, Economy

Overview:
Latvia is in the process of reforming the centrally planned economy
inherited from the former USSR into a market economy. Prices have been
freed, and privatization of shops and farms has begun. Latvia lacks natural
resources, aside from its arable land and small forests. Its most valuable
economic asset is its work force, which is better educated and disciplined
than in most of the former Soviet republics. Industrial production is highly
diversified, with products ranging from agricultural machinery to consumer
electronics. One conspicuous vulnerability: Latvia produces only 10% of its
electric power needs. Latvia in the near term must retain key commercial
ties to Russia, Belarus, and Ukraine while moving in the long run toward
joint ventures with technological support from, and trade ties to the West.
Because of the efficiency of its mostly individual farms, Latvians enjoy a
diet that is higher in meat, vegetables, and dairy products and lower in
grain and potatoes than diets in the 12 non-Baltic republics of the former
USSR. Good relations with Russia are threatened by animosity between ethnic
Russians (34% of the population) and native Latvians. The cumulative
difficulties in replacing old sources of supply and old markets, together
with the phasing out of the Russian ruble as the medium of exchange, help
account for the sharp 30% drop in GDP in 1992.
National product:
GDP $NA
National product real growth rate:
-30% (1992)
National product per capita:
$NA
Inflation rate (consumer prices):
2% per month (first quarter 1993)
Unemployment rate:
3.6% (March 1993); but large numbers of underemployed workers
Budget:
revenues $NA; expenditures $NA, including capital expenditures of $NA
Exports:
$NA
commodities:
NA
partners:
NA
Imports:
$NA
commodities:
NA
partners:
NA
External debt:
$650 million (1991 est.)
Industrial production:
growth rate -35% (1992 est.)
Elec