Business partner Latvia
Latvia has had strained relations with Russian Federation due to Russian discontent with Latvian language and citizenship policies.
Latvia is divided into 26 districts (rajoni). There are also seven cities (lielpilsētas) that have a separate status.
Privatization has been mostly completed, except for some of the large state-owned utilities. Latvia is a member of the World Trade Organization (1999) and the European Union (2004).
In 2006, annual GDP growth was 11.9% and inflation was 6.2%. Unemployment was 8.5% - almost unchanged compared to the previous two years.
The fast growing economy is regarded as a possible economic bubble, because it is driven mostly by growth of domestic consumption, financed by a serious increase of private debt, as well as negative foreign trade balance.
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Business partner Latvia