🇱🇻 Latvia

Latvia is a Baltic nation of 1.9 million with a GDP of about $43 billion — and it's shrinking fast. The population has declined by about 30% since independence in 1991, one of the steepest drops of any country not at war. Riga, the capital, has a stunning Art Nouveau district — the largest collection of Art Nouveau buildings in the world. Latvia joined the EU and NATO in 2004 and adopted the euro in 2014. About 25% of the population is ethnic Russian, creating social tensions that intensified after Russia's invasion of Ukraine. The country has extensive forests covering about 54% of its territory.

Wood products, food processing, metals, and transit services (Latvia's ports handle Russian and Central Asian cargo) are the main sectors. The EU (particularly Lithuania, Estonia, and Germany) dominates trade. Latvia's banking sector was once a major conduit for Russian money — the third-largest bank (ABLV) was shut down in 2018 for money laundering. GDP growth has been around 2-3%. The country has one of the highest income inequality levels in the EU.

Latvia's Song and Dance Festival, held every five years, brings together over 40,000 performers — it's one of the largest choral events in the world and is UNESCO-recognized. The country invented jeans — Jacob Davis, who patented riveted denim pants with Levi Strauss, was born in Riga. Latvia has the fourth-fastest internet in the world.

Latvia's demographic decline is the defining challenge — the country is literally disappearing. EU membership provides economic stability, but without reversing emigration, the long-term viability of public services is in question.