What is Latvia's economic system?

Answer 1

Latvia's economic freedom score is 65.2, making its economy the 56th freest in the 2012 Index. Its score is 0.6 point worse than last year as a result of worsened management of public finance and corruption. Latvia is ranked 25th out of 43 countries in the Europe region, and its overall score is above the world average.

Latvia's ongoing transition to a more vibrant and market-oriented economy has been facilitated by openness to foreign trade and the efficiency of business regulations that promote entrepreneurial dynamism. Nonetheless, perceived corruption, exacerbated by a relatively inefficient judicial system, undermines the foundations of economic freedom and threatens long-term competitiveness.

The global financial and economic turmoil took a heavy toll on Latvia, but the economy has gradually been recovering from the severe shock of the crisis, particularly since mid-2010. The country had to take an International Monetary Fund-led bailout requiring strict budget management and other economic reforms but has followed through on budget-cutting measures. With signs of economic stabilization emerging and committed political leadership in place, Latvia is better positioned than some other countries in the region to regain robust levels of growth

Answer 2

Privatization has taken place to a great degree in Latvia. The Latvian economy was affected badly by the economic crisis of 2008-2009, but it has begun to recover.