ote--Guntis ULMANIS
53%, Ilga KREITUSE 25%

Legislative branch: unicameral Parliament or Saeima (100 seats;
members are elected by direct popular vote to serve four-year
terms--amended from three-year term on 4 December 1997)
elections: last held 3 October 1998 (next to be held NA October 2002)
election results: percent of vote by party--People's Party 21%, LC
18%, TSP 14%, TVB/LNNK 14%, Social Democrats 13%, New Party 8%;
seats by party--People's Party 24, LC 21, TSP 16, TVB/LNNK 17, Social
Democrats 14, New Party 8

Judicial branch: Supreme Court, judges' appointments are
confirmed by Parliament

Political parties and leaders: New Party [Raimonds PAULS];
V. IVANOV]; Christian People's Party or KTP (formerly People's Front
ADAMSONS]

International organization participation: BIS, CBSS, CCC, CE,
EAPC, EBRD, ECE, EU (applicant), FAO, IAEA, IBRD, ICAO, ICFTU, ICRM,
IDA, IFC, IFRCS, ILO, IMF, IMO, Intelsat (nonsignatory user),
Interpol, IOC, IOM (observer), ISO (correspondent), ITU, OAS
(observer), OPCW, OSCE, PFP, UN, UNCTAD, UNESCO, UNIDO, UPU, WEU
(associate partner), WHO, WIPO, WMO, WTrO

Diplomatic representation in the US:
chief of mission: Ambassador Ojars Eriks KALNINS
chancery: 4325 17th Street NW, Washington, DC 20011

Diplomatic representation from the US:
chief of mission: Ambassador James H. HOLMES
embassy: Raina Boulevard 7, LV-1510, Riga
mailing address: American Embassy Riga, PSC 78, Box Riga, APO AE
09723

Flag description: three horizontal bands of maroon (top), white
(half-width), and maroon

Economy

Economy--overview: Developments in 1998 include an invitation to
join the World Trade Organization (the first Baltic country
invited), GDP growth of 3.6% (down from 6% in 1997), and reduced
inflation at 4.7% (from 8.4% in 1997). The drop in GDP growth is
largely attributable to the impact of Russia's financial crisis and
reduced investment in emerging markets following the Asian financial
troubles. Unofficial sanctions that Russia imposed in the spring
initially hit Latvia's exporters--Russia is among Latvia's top three
trade partners--but also prompted them to seek alternative markets.
Latvia continued its strict fiscal and monetary policy, including
its second balanced budget and had a 1.8% budget surplus. Its draft
1999 budget is based on conservative projections of 2% to 4% GDP
growth and 4.5% inflation. Unempl