Income trends 2004-23
Photo: Source: IMF
But other economic accomplishments are worth noting. Before EU membership, Latvian exports constituted about 40% of GDP. With open borders, this has increased to about 60%, making Latvia one of the most open economies in the EU and taking advantage of these open borders.
Membership has also changed the composition of Latvia’s trading partners. In 2004, the three most important export destinations were UK, Germany and Sweden. Today, Lithuania is by far the most important destination for Latvian exports, followed by Estonia.
And the integration into the EU in terms of foreign trade is remarkable. Of the ten main trading partners, eight are in the EU with only Russia (in fourth place) and the UK, a former-EU country (in sixth place) being the exceptions.
Overall, I think EU membership has brought many benefits and I often see this membership as the single most important part of what I consider Latvia’s long journey towards institutions that promote free trade (EU, World Trade Organization, Eurozone), the free market economy (EU, World Bank, IMF, OECD) and democracy and human rights (EU, OSCE).
Latvia has been very consistent and also successful in its aim for promoting these values. Those who would have liked to see closer connections with Russia and its distorted “values” – we could label them “Ždanokists” – have lost out.
The reorientation of the Latvian economy towards the west has been massive since independence and with good economic results for most but before we open the champagne, let us admit to two failures: having been significantly less able to take advantage of EU membership than Lithuania and a level of outward migration that has hurt the economy.
But then, by all means, open the champagne!
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Source link : https://eng.lsm.lv/article/features/commentary/23.04.2024-latvias-20-years-of-eu-membership-economic-accomplishments-and-a-couple-of-disappointments.a550584/
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Publish date : 2024-04-23 07:00:00
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