The Republic of Latvia is a small (2 million habitant) and open economy with deep links to the European Union, and still significant connections to some countries in the CIS region. Although the 2007-2010 financial crisis had a major adverse effect on Latvia, exposing its external vulnerabilities, the country has managed one of the most successful macroeconomic adjustment programmes in recent history, registering a quick and consistent economic recovery with admirable resolve in fiscal policy and rapid labour market adjustment. After a deep contraction, average growth of more than 3-4 % annually since 2011 has been significantly above the EU average.

Dr. Alexei Kuzmin
University of Latvia, Institute of Solid State Physics
in partnership with