Productivity will be crucial for strong inclusive growth. Policies need to continue improving the business environment and strengthening the capacity of the vocational education system to provide graduates with employable and internationally competitive skills. Stepping up tax collection will widen the fiscal room to finance growth-enhancing structural reforms and reduce taxes on low wages.

  • Reduce entry barriers and red tape by simplifying the permits and licenses system and tax payments.
  • Proceed with reform of vocational education and training, including the planned extension of work-based learning.
  • Bring the governance of state-owned enterprises further in line with the OECD Guidelines on Corporate Governance of State-Owned Enterprises.
  • Continue improving the connectivity of energy networks with the rest of the European Union.
  • Implement the planned reform of public R&D and tertiary education to raise the degree of internationalisation and strengthen collaboration with the private sector. 

Productivity - Latvia

Source: OECD June 2016 Economic Outlook database; OECD, Income Distribution and Poverty database; and OECD Secretariat calculations from EU-SILC – preliminary results.


Key publications

Smidova,Z.  (2015), "Policy areas for increasing productivity in Latvia economics", OECD Economics Department Working Papers, No. 1255, OECD Publishing, Paris.

Stockholm School of Economics in Riga (2013), Latvia Competitiveness Report.

Fadejeva, L. and A. Melihovs (2009), “Measuring Total Factor Productivity and Variable Factor Utilisation: Sector Approach, the Case of Latvia”, Bank of Latvia Working Paper, No.3, 40p.


Institutions icon Productivity - enhancing institutions

Ministry of Economics of the Republic of Latvia

The Ministry of Economics has a leading role in formulating economic policy. An important objective is to raise the competitiveness of the Latvian economy. The Ministry analyses economic developments, structural policy priorities as well as short and long-term perspectives.

Investment and Development Agency of Latvia.

The objective of the Investment and Development Agency of Latvia (LIAA) is to promote business development by facilitating foreign investment and increasing competitiveness of Latvian entrepreneurs.




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