Latvia

  • © AFP/Europress

    About the ILO in Latvia


    Strong EU convergence, declining population


    After more than 50 years as part of the Soviet Union, Latvia regained independence in 1991 and set out on the road to independent democracy and a social market economy. The transition from a centrally planned system to a market economy required a complete overhaul of key economic institutions. EU membership in 2004 and the integration with the European Union further enhanced the successful transition.

    Latvia has been able to maintain a strong convergence towards the average EU per capita income in the past 25 years although the process is slightly slower than in the other Baltic states. While in the early 1990s the per capita income was below 25% of the EU average it now reached 70%. Continue reading