Latvia

Latvia, officially known as the Republic of Latvia (Latvijas Republika), is a Baltic nation located in Northern Europe along the eastern shore of the Baltic Sea. It shares borders with Estonia to the north, Lithuania to the south, Russia to the east, and Belarus to the southeast. As a member of the European Union (EU), NATO, and the Eurozone, Latvia has emerged from its turbulent history as a democratic and high-income parliamentary republic. The capital city, Riga, serves as the political, economic, and cultural heart of the nation and is one of the most architecturally rich cities in the Baltic region.

Historical Background

Latvia’s roots trace back to the Baltic tribes that settled in the region between the 8th and 12th centuries, forming the foundation of the Latvian ethnic identity and language. During the medieval era, German crusaders established control over much of the territory, introducing Christianity and establishing trade networks through the Hanseatic League. Over subsequent centuries, Latvia’s lands alternated between Polish-Lithuanian, Swedish, and Russian domination, with the Russian Empire consolidating authority by the late 18th century.
Following the collapse of the Russian Empire in the aftermath of the First World War, Latvia proclaimed independence on 18 November 1918, establishing its first republic. However, the interwar independence was short-lived: in 1940, Latvia was forcibly annexed by the Soviet Union, a move condemned internationally and never recognised by most Western powers. During World War II, Latvia endured dual occupations—by Nazi Germany and later by the USSR—resulting in extensive population losses, deportations, and political repression.
Latvia regained sovereignty on 4 May 1990, with international recognition following the collapse of the Soviet Union on 6 September 1991. The withdrawal of Russian troops in 1994 marked the restoration of full independence. Since then, Latvia has pursued deep integration with Western institutions, joining NATO and the EU in 2004, adopting the euro in 2014, and becoming a member of the OECD in 2016. Nevertheless, the Russian-speaking minority, comprising around one-quarter of the population, continues to shape Latvia’s domestic politics and its diplomatic stance toward Russia.

Geography and Environment

Latvia occupies an area of 64,589 square kilometres, characterised by low-lying plains, gentle hills, and a maritime climate moderated by the Baltic Sea. Its coastline stretches 498 kilometres, while borders extend to Belarus (161 km), Estonia (333 km), Lithuania (544 km), and Russia (332 km). The country’s highest elevation, Gaizina Kalns, rises modestly to 312 metres.
Forests cover approximately 55% of Latvia’s land area, making it one of the most forested nations in Europe. Agricultural land accounts for around 32%, supporting grain, dairy, and forestry-based industries. Key natural resources include peat, dolomite, limestone, timber, and hydropower. Environmental priorities include addressing air and soil pollution, waterlogged farmland, and climate adaptation, while the country continues to expand renewable energy initiatives, particularly hydropower and biomass.

People and Society

Latvia’s population, estimated at 1.8 million (2024), reflects significant demographic challenges such as population decline (-1.14% growth) and ageing. Ethnically, the population is composed of Latvians (62.7%), Russians (24.5%), Belarusians (3.1%), Ukrainians (2.2%), Poles (2%), and others (5.5%). The official language is Latvian, though Russian remains widely spoken, particularly in urban and eastern regions.
Religiously, Lutheranism (36.2%), Roman Catholicism (19.5%), and Orthodoxy (19.1%) are predominant, reflecting diverse historical influences. The urbanisation rate stands at 68.7%, with Riga—home to approximately 621,000 residents—as the country’s metropolitan core.
Latvia’s median age is 45.5 years, one of the highest in Europe, signalling an ageing population. Health indicators include life expectancy of 76.4 years (men 72; women 81) and a fertility rate of 1.55 children per woman. Public health expenditure constitutes 9% of GDP, ensuring broad healthcare access. Nonetheless, tobacco use (29%) and alcohol consumption (12.9 litres per capita) pose public health challenges.
Education in Latvia is comprehensive, with 96% literacy and a school life expectancy of 16 years. The country spends 5.4% of GDP on education, and 92% of the population uses the internet, reflecting strong digital integration in daily life.

Government and Politics

Latvia operates as a parliamentary republic, governed under the 1922 Constitution (Satversme), reinstated in 1993. The President, elected by the Saeima (Parliament) for a four-year term, serves as head of state, while the Prime Minister leads the executive branch.
As of 2025, Edgars Rinkēvičs holds the presidency (since July 2023), and Evika Siliņa serves as Prime Minister (since September 2023). The Saeima, composed of 100 members, is elected every four years through proportional representation, encouraging coalition governments. The 2022 elections resulted in seven parties entering parliament, with New Unity (VIENOTĪBA) emerging as the largest faction.
Latvia’s judiciary, comprising the Supreme Court and Constitutional Court, operates within a civil law framework consistent with European legal norms. The nation’s foreign policy emphasises European integration, transatlantic cooperation, and regional security, maintaining close partnerships with Nordic states, the United States, and other EU members.

Economy

Latvia maintains a high-income, open-market economy, integrated within the Eurozone and characterised by strong service and industrial sectors. Despite labour shortages and an ageing workforce, Latvia continues to advance digital transformation and green economic reforms.

• GDP (PPP, 2024): $72.5 billion
• GDP per capita (PPP): $38,900
• Real GDP growth (2024): –0.4%
• Inflation: 1.3%
• Unemployment: 6.8%
• Poverty rate: 22.5%

The service sector contributes 63% of GDP, followed by industry (20%) and agriculture (4%). Major industries include wood processing, food manufacturing, metal fabrication, pharmaceuticals, and electronics.
Trade and Finance:

• Exports (2024): $28.1 billion — chiefly wood, wheat, broadcasting equipment, packaged medicine, and natural gas
• Imports (2024): $29.2 billion — including refined petroleum, cars, medicines, and natural gas
• Top trading partners: Lithuania, Estonia, Russia, Germany, and Sweden
• Currency: Euro (EUR)
• Foreign reserves: $5.1 billion (2024)
• Public debt: 36% of GDP

Latvia’s fiscal policies adhere to EU Stability Pact standards, and its financial system is stable, supported by a diversified trade network within the European market.

Energy and Infrastructure

Latvia’s energy system is among the greenest in Europe, with hydropower contributing about 60% of installed capacity. Biomass (10%), wind (4%), and solar (4%) play growing roles, while fossil fuels (22%) continue to supply the remainder.
Key energy facilities include the Riga Hydroelectric Power Plant and Kegums Dam, alongside the Inčukalns Underground Gas Storage Facility, which serves as a vital reserve for the wider Baltic energy grid.

• Electricity access: 100%
• Installed capacity (2023): 3.43 million kW
• Energy consumption per capita: 65.9 million Btu

Efforts to decarbonise the energy mix are central to Latvia’s National Energy and Climate Plan 2030, aiming for greater energy independence and carbon neutrality.

Military and Security

Latvia’s defence and security are anchored in NATO membership (since 2004) and its EU affiliation. The National Armed Forces (NBS) include the Land, Naval, and Air Forces, as well as the National Guard (Zemessardze).

• Active personnel: ~9,000 (2025)
• Defence spending: 3.4% of GDP
• Conscription: Reintroduced in 2024 (men aged 18–27, 12 months of service)
• Women in service: 16.5% of personnel

Latvia hosts a Canadian-led NATO battlegroup under the Enhanced Forward Presence (eFP) initiative and contributes to international peacekeeping operations, including KFOR in Kosovo. Key national security concerns involve Russian military activity, cyber threats, and border integrity.

Culture and National Identity

Latvia’s cultural identity combines ancient Baltic traditions with European modernity. The national flag, one of the world’s oldest, dates to 1280, displaying maroon and white bands symbolising freedom and sacrifice. The national anthem, “Dievs, svētī Latviju!” (God Bless Latvia), was composed by Kārlis Baumanis and first performed in 1873.