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When did Latvia become a market economy?
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6 days ago · Substantial economic changes occurred following Latvia’s independence in 1991, as the country transitioned to a market economy. Starting in the mid-1990s, the economy diversified, and by the early 21st century most industry in Latvia had been privatized.
Latvia's economy has had rapid GDP growth of more than 10% per year during 2006–07, but entered a severe recession in 2009 as a result of an unsustainable current account deficit, collapse of the real estate market, and large debt exposure amid the softening world economy.
Aug 11, 2022 · After gaining independence from the Soviet Union in 1991, Latvia replaced its formerly planned economy by a market economy. The first currency was the Latvian Rouble replaced by the Lats later. The economy was focused on heavy industry during the Soviet era and regional development was neglected.
The current mixed economy system of Latvia is a combination of political, economic, and social factors. The collapse of the Soviet Union in 1991 led to the introduction of a market-based economy, while the country’s accession to the European Union in 2004 further strengthened its economic ties to the West.
Latvia's annexation by the Soviet Union after World War II led to a radical transformation of its economy.
But economic freedom did wonders and young Baltic entrepreneurs put the economy back on track within a decade, filling the cities with new malls and office buildings which the Soviet system lacked. By 2001, Latvia was effectively a modern European society, attracting foreign investments.
The interwar independent Republic of Latvia was among the first ten pioneering states, where a national statistical office published official estimates of total output (1934–1936). Paradoxically, however, Latvia is the Baltic country with the most disputed interwar economic growth performance.
