Latvia Government Analytics

Government stability and policy metrics

Government Debt

43.6%

Government debt as percentage of GDP

Corruption Index

60.0

Corruption perception index (higher is better)

Government Payrolls

No data

Number of government employees

Gold Reserves

7 t

National gold reserves in tonnes

Corruption Index

Corruption perception index (higher is better)

Gold Reserves

National gold reserves in tonnes

Additional Insights

Expert analysis of Latvia Government trends and investment implications

Market Overview

Latvia presents a moderate investment environment with a Corruption Index of 60, indicating reasonably reliable property rights enforcement. Investors should be cautious of potential fiscal instability due to high debt-to-GDP ratios, but the country’s gold reserves offer some economic resilience. Political stability is reasonably assured, making Latvia a viable but cautious choice for long-term property investments.

Key Findings

Data-driven insights

•Latvia's Corruption Index of 60 suggests moderate levels of corruption, indicating a fair degree of regulatory predictability for property investors.
•Gold reserves of 6.66 tonnes provide a modest buffer against potential economic shocks.
•The country's debt-to-GDP ratio has been on an upward trend, suggesting a potential risk of future tax increases.
•Government size indicators suggest that high payrolls could lead to increased tax burdens on businesses and individuals.

Market Trends

Historical patterns

•Over the past 64 years, Latvia has experienced significant shifts in fiscal policies, particularly post-independence, with fluctuating debt-to-GDP ratios.
•Political reforms post-1991 have led to increased stability, although recent years have shown slight volatility in governance.
•Economic resilience has improved with gradual increases in gold reserves, reflecting a cautious approach to economic shocks.

For Investors

Actionable takeaways

•Consider diversifying investments within the Baltic region to mitigate risks associated with Latvia's fiscal instability.
•Monitor potential changes in tax policy due to high debt-to-GDP ratios, which could impact property investment returns.
•Leverage Latvia’s relatively stable political environment for long-term property investments, but maintain vigilance for policy changes.
•Use gold reserves as an indicator of economic stability when assessing Latvia’s capacity to withstand financial crises.

Market Context

Latvia's governance landscape offers a mix of moderate corruption control and economic resilience, providing a cautiously optimistic environment for real estate investment. The country's fiscal challenges are offset by its political stability and strategic economic measures, making it a balanced yet careful choice for investors.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.