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