IMF.........................................WB...................................CIA
rank/measure...........................rank/measure.....................rank/measure
46/11,908............................37/11,931..........................49/12,098
Latvia’s economic freedom score is 66.5, making its economy the 55th freest in the 2013 Index. Its score is 1.3 points better than last year due to significantly improved scores in the management of government spending and labor freedom. Latvia is ranked 25th out of 43 countries in the Europe region, and its overall score is above the world average.
The global financial and economic turmoil took a heavy toll on Latvia, but the economy has gradually been recovering from the severe shock of the crisis, particularly since mid-2010, with determined budget-cutting measures. The political leadership appears to be committed to reform, and Latvia is now better positioned than some other countries in the region to achieve economic stabilization and regain robust levels of economic growth.
Latvia’s ongoing transition to a more dynamic and market-oriented economy has been facilitated by openness to foreign trade and the efficiency of business regulations designed to promote entrepreneurial activity. However, lingering corruption, exacerbated by a relatively inefficient judicial system, will undermine long-term competitiveness if left unaddressed.
