oyment climbed to 9.2% in 1998, a
considerable increase over the 6.7% rate in 1997. Latvia continued
to have a high current account deficit, estimated at about 9%.
Privatization of large state utilities--especially the energy
sector--was postponed and is unlikely to resume before late 1999. EU
accession remains Latvia's top priority, and Latvia expects to be
invited to start EU accession talks by the end of 1999. Continued
troubles in the Russian and East Asian economies probably will hold
growth to around 2.5% in 1999.

GDP: purchasing power parity--$9.7 billion (1998 est.)

GDP--real growth rate: 3.6% (1998 est.)

GDP--per capita: purchasing power parity?$4,100 (1998 est.)

GDP--composition by sector:
agriculture: 7%
industry: 28%
services: 65% (1997)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 4.3%
highest 10%: 22.1% (1993)

Inflation rate (consumer prices): 4.7% (1998 est.)

Labor force: 1.4 million (1997)

Labor force--by occupation: industry 41%, agriculture and forestry
16%, services 43% (1990)

Unemployment rate: 9.2% (1998)

Budget:
revenues: $1.33 billion
expenditures: $1.27 billion, including capital expenditures of $NA
(1998 est.)

Industries: buses, vans, street and railroad cars, synthetic
fibers, agricultural machinery, fertilizers, washing machines,
radios, electronics, pharmaceuticals, processed foods, textiles;
dependent on imports for energy, raw materials, and intermediate
products

Industrial production growth rate: 3% (1998 est.)

Electricity--production: 3.2 billion kWh (1996)

Electricity--production by source:
fossil fuel: 28.12%
hydro: 71.88%
nuclear: 0%
other: 0% (1996)

Electricity--consumption: 6.18 billion kWh (1996)

Electricity--exports: 300 million kWh (1996)

Electricity--imports: 3.28 billion kWh (1996)

Agriculture--products: grain, sugar beets, potatoes, vegetables;
beef, milk, eggs; fish

Exports: $1.9 billion (f.o.b., 1998)

Exports--commodities: wood and wood products, machinery and
equipment, textiles, foodstuffs

Exports--partners: Russia 21%, Germany 14%, UK 14%, Sweden 8%
(1997)

Imports: $3.1 billion (f.o.b., 1998)

Imports--commodities: fuels, machinery and equipment, chemicals

Imports--partners: Russia 16%, Germany 16%, Finland 10%, Sweden 8%
(1997)

Debt--external: $212 million (1998)

Economic aid--recipient: $9