By using system dynamic modelling, this research evaluates the role of Latvian forest biotechonomic – more efficient exploitation of natural resources and higher added-value in processing of biological goods – industry in the macroeconomic development model of the national economy of Latvia by year 2047. In addition, research primarily focusses on three notable macroeconomic sectors – natural resource exploitation, education and healthcare. For the purposes of investigation, a causal loop diagram and corresponding system dynamics model of the national economy of Latvia was developed. By introduction of forest biotechonomy in the national economic model, results show that financial resources become more available for education and healthcare sectors; however, not to the significant level formerly anticipated. Furthermore, forest biotechonomy introduction also reinforces further development of high-added value industries and general economic growth via relative productivity increase and prolonging of relative working hours. Such results are achieved while proportionally diminishing impact of economic growth on environment This research indicates that forest biotechonomy could be considered an influential and sustainable additional driver of economic growth in Latvia in the years to come. Furthermore, by highlighting certain limitations of the particular investigation, this research sets out potential realms of further research to come.