Some rye, barley, flax, potatoes, sugar beets, and fodder crops are grown. Fishing is important along the Baltic coast and also in the Atlantic. Latvia has few industrial raw materials. The only fuel is peat, which is used in several large electric power plants. There are a few small hydroelectric plants.
Natural gas comes by pipeline from Ukraine.
Manufacturing has developed rapidly, and electric motors, farm machinery, buses, railroad equipment, and ships are produced. Latvia also manufactures radios, television sets, and household equipment. Much of this industry is located in Riga, though other Latvian cities have developed industries. Timber from Latvia's forests is used in the manufacture of furniture. Latvia has the densest rail network of all the Baltic countries.