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

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

3
Latvia leads
7
Indicators
4
Italy leads
Italy leads overall

Analysis by Eunomist Research Team  •  Updated 2026

Executive Summary

How Does Latvia Compare to Italy? The Key Economic Story

Latvia and Italy represent two distinct economic models within the European Union. With Latvia leading on 3 of 7 measured indicators and Italy ahead on 4, this comparison reveals important structural differences across growth, labour markets, and fiscal policy.

The GDP per capita gap — €21,030 for Latvia versus €36,330 for Italy — 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
€36,330
🇮🇹 Italy
Primary measure of living standards and productive output per person.
GDP Growth Rate
-0.9%
🇱🇻 Latvia
0.9%
🇮🇹 Italy
Annual real economic expansion — the pulse of short-term economic health.
Unemployment Rate
6.5%
🇱🇻 Latvia
7.7%
🇮🇹 Italy
Percentage actively seeking but unable to find work. The EU average benchmark is around 6%.
Government Debt
44.4% GDP
🇱🇻 Latvia
133.9% GDP
🇮🇹 Italy
Total accumulated government debt. The EU's Stability Pact reference target is below 60% of GDP.
Inflation (HICP)
143.4%
🇱🇻 Latvia
120.9%
🇮🇹 Italy
The EU's harmonised measure of consumer price changes. The ECB targets 2% across the eurozone.
Employment Rate
77.5%
🇱🇻 Latvia
66.3%
🇮🇹 Italy
Share of working-age population with a job — higher means more productive capacity being used.
All Indicators

Latvia vs Italy: 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 🇮🇹 Italy Gap
GDP per Capita
Primary measure of living standards and productive output per person.
€21,030 €36,330 €15,300
GDP Growth Rate
Annual real economic expansion — the pulse of short-term economic health.
-0.9% 0.9% 1.8%
Current Account Balance
A surplus means the economy earns more from abroad than it spends — a sign of competitiveness.
-3.8% +0.2% +4.0%
Labour
Indicator 🇱🇻 Latvia 🇮🇹 Italy Gap
Unemployment Rate
Percentage actively seeking but unable to find work. The EU average benchmark is around 6%.
6.5% 7.7% 1.2%
Employment Rate
Share of working-age population with a job — higher means more productive capacity being used.
77.5% 66.3% 11.2%
Prices
Indicator 🇱🇻 Latvia 🇮🇹 Italy Gap
Inflation (HICP)
The EU's harmonised measure of consumer price changes. The ECB targets 2% across the eurozone.
143.4% 120.9% 22.5%
Fiscal
Indicator 🇱🇻 Latvia 🇮🇹 Italy Gap
Government Debt
Total accumulated government debt. The EU's Stability Pact reference target is below 60% of GDP.
44.4% GDP 133.9% GDP 89.5% GDP
Verdict

Choose Latvia or Italy? The Bottom Line

🇱🇻
Choose Latvia if...
  • you prioritise the indicators where it leads — including Unemployment Rate and Government Debt.
  • its economic structure aligns better with your sector.
  • market size and regional positioning in the EU matter for your strategy.
🇮🇹
Choose Italy if...
  • you prioritise the indicators where it leads — including GDP per Capita and GDP Growth Rate.
  • its fiscal and labour market profile suits your business model.
  • growth trajectory is your primary investment criterion.
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