Republic of Latvia: Selected Issues

This Selected Issues paper assesses the outcomes and efficiency of public spending on education and healthcare in Latvia. It highlights opportunities to strengthen service delivery, improve spending efficiency, and enhance outcomes. In education, the analysis examines student outcomes, skills alignment, staffing issues, and the effectiveness of education spending in supporting human capital development. In health, it examines population health outcomes, the efficiency of health spending, and key factors contributing to Latvia’s low life expectancy. However, efficiency gains alone are unlikely to be sufficient to achieve better outcomes, which will likely also require more spending. In education, more resources should be directed toward tertiary education and expanding the use of digital tools. In health, where Latvia’s outcomes continue to lag those of its peers, more investment is needed in prevention to support a healthier and more productive population. Priority should be given to high-value reforms, including strengthening preventive care, addressing workforce shortages, improving access to healthcare, and enhancing primary and community-based care.