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🇱🇻 VS 🇪🇪

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

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

2
Latvia leads
7
Indicators
5
Estonia leads
Estonia leads overall

Analysis by Eunomist Research Team  •  Updated 2026

Executive Summary

How Does Latvia Compare to Estonia? The Key Economic Story

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

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

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

Choose Latvia or Estonia? The Bottom Line

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