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Main article: Economy of Latvia
Latvia's transitional economy recovered from the 1998 Russian financial crisis, largely due to the previous government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Latvia's trade dependency on Russia. The majority of companies, banks, and real estate have been privatised. Latvia officially joined the World Trade Organisation in February 1999 and the European Union in May 2004. The high current account deficit remains a major concern.
Main article: Demographics of Latvia
Less than 60% of the population of Latvia are ethnic Latvians. About 30% is Russian, whose wellbeing is a continuing concern for Russia. In the larger cities, such as Riga and Daugavpils, Russians outnumber Latvians. Sizeable minorities from other countries such as Belarus, Ukraine and Poland also live in Latvia.
Latvian, a member of the Baltic languages, is the country's only official language, but Russian is also widely spoken. The population is largely Christian, divided between the Lutheran, Catholic and Russian Orthodox Churches. Another religion is Dievturi (The Godkeepers), which has historical roots based on preChristian era mythology.
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