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Estonia vs Latvia Economy: GDP, Tax and Key Indicators 2026

Estonia and Latvia: A Side-by-Side EU Economic Analysis

5
Estonia leads
7
Indicators
2
Latvia leads
Estonia leads overall

Analysis by Eunomist Research Team  •  Updated 2026

Executive Summary

How Does Estonia Compare to Latvia? The Key Economic Story

Estonia and Latvia represent two distinct economic models within the European Union. With Estonia leading on 5 of 7 measured indicators and Latvia ahead on 2, this comparison reveals important structural differences across growth, labour markets, and fiscal policy.

The GDP per capita gap — €28,080 for Estonia versus €21,030 for Latvia — tells one part of the story, but the full picture emerges from examining unemployment rates, debt levels, and productivity trends side by side.

For businesses and investors, understanding which country performs better on which dimensions is essential. The data presented here draws on Eurostat indicators across economy, labour, fiscal, and social domains.

Key Numbers

The Most Important Metrics at a Glance

GDP per Capita
€28,080
🇪🇪 Estonia
€21,030
🇱🇻 Latvia
Primary measure of living standards and productive output per person.
GDP Growth Rate
-2.7%
🇪🇪 Estonia
-0.9%
🇱🇻 Latvia
Annual real economic expansion — the pulse of short-term economic health.
Unemployment Rate
6.4%
🇪🇪 Estonia
6.5%
🇱🇻 Latvia
Percentage actively seeking but unable to find work. The EU average benchmark is around 6%.
Government Debt
20.2% GDP
🇪🇪 Estonia
44.4% GDP
🇱🇻 Latvia
Total accumulated government debt. The EU's Stability Pact reference target is below 60% of GDP.
Inflation (HICP)
149.5%
🇪🇪 Estonia
143.4%
🇱🇻 Latvia
The EU's harmonised measure of consumer price changes. The ECB targets 2% across the eurozone.
Employment Rate
82.1%
🇪🇪 Estonia
77.5%
🇱🇻 Latvia
Share of working-age population with a job — higher means more productive capacity being used.
All Indicators

Estonia vs Latvia: Full Indicator Comparison

All 7 available EU indicators compared side by side. Green highlights indicate the stronger performer on each metric. Each row includes a one-line interpretation of what the indicator measures.

Economy
Indicator 🇪🇪 Estonia 🇱🇻 Latvia Gap
GDP per Capita
Primary measure of living standards and productive output per person.
€28,080 €21,030 €7,050
GDP Growth Rate
Annual real economic expansion — the pulse of short-term economic health.
-2.7% -0.9% 1.8%
Current Account Balance
A surplus means the economy earns more from abroad than it spends — a sign of competitiveness.
-1.2% -3.8% +2.6%
Labour
Indicator 🇪🇪 Estonia 🇱🇻 Latvia Gap
Unemployment Rate
Percentage actively seeking but unable to find work. The EU average benchmark is around 6%.
6.4% 6.5% 0.1%
Employment Rate
Share of working-age population with a job — higher means more productive capacity being used.
82.1% 77.5% 4.6%
Prices
Indicator 🇪🇪 Estonia 🇱🇻 Latvia Gap
Inflation (HICP)
The EU's harmonised measure of consumer price changes. The ECB targets 2% across the eurozone.
149.5% 143.4% 6.1%
Fiscal
Indicator 🇪🇪 Estonia 🇱🇻 Latvia Gap
Government Debt
Total accumulated government debt. The EU's Stability Pact reference target is below 60% of GDP.
20.2% GDP 44.4% GDP 24.2% GDP
Verdict

Choose Estonia or Latvia? The Bottom Line

🇪🇪
Choose Estonia if...
  • you prioritise the indicators where it leads — including GDP per Capita and Unemployment Rate.
  • its economic structure aligns better with your sector.
  • market size and regional positioning in the EU matter for your strategy.
🇱🇻
Choose Latvia if...
  • you prioritise the indicators where it leads — including GDP Growth Rate and Inflation (HICP).
  • its fiscal and labour market profile suits your business model.
  • growth trajectory is your primary investment criterion.
🇪🇪
Estonia Full Profile
Digital Republic and Baltic Tech Leader
Explore Estonia →
🇱🇻
Latvia Full Profile
Baltic Economy Catching Up Through Open Trade
Explore Latvia →
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