Index Commentary

Latvia drops in the Index by 14 places to rank 37. A substantial decrease in energy security makes this dimension the weakest one (rank 64). This was driven by a decrease in the wholesale margin on gasoline and a slowing down of the reductions in energy consumption. Latvia’s strong environmental performance also experiences a drop driven by higher energy and emissions intensity per capita as well as by a declined quality of air and water; this is only partly offset by a reduction of CO2 emissions from electricity and heat generation. In addition, Latvia’s very weak economic situation further deteriorates due to a decline in macroeconomic stability and credit availability.