Latvia Economic Outlook
October 27, 2020Following the sharpest GDP contraction since the 2009-10 global financial crisis in Q2 as a result of the Covid-19 blow, recent data hints at a recovery that is losing traction. After a slight rebound in July, industrial production slumped again in August as manufacturing output faltered. Moreover, retail sales growth waned again in the same month, which, combined with a still-elevated, despite gradually falling, unemployment rate and deeply entrenched pessimism among consumers in Q3, bodes ill for private consumption. The surge in new virus infections from mid-September onwards may come to further restrain spending heading into Q4. On a positive note, Fitch Ratings affirmed the country’s credit rating at A- and lifted its outlook from negative to stable on 9 October, citing the economy’s relative resilience to the pandemic’s shock and the government’s favorable financing conditions.
Latvia Economic GrowthThe Covid-19 outbreak and associated containment measures will pummel activity this year. Next year, however, output is expected to rebound in line with a recovery in domestic spending and external demand. That said, key risks to the outlook still abound, particularly the latest resurgence of infections, which may prompt a reinstatement of restrictions. FocusEconomics panelists project GDP to grow 4.6% in 2021, which is down 0.2 percentage points from last month’s forecasts, and 3.6% in 2022.
Latvia Economy Data
5 years of Latvia economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
|Bond Yield||0.55||0.0 %||Jun 30|
|Exchange Rate||1.12||0.65 %||Dec 31|
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Latvia Economic News
April 29, 2021
GDP fell 2.2% on an annual basis in the first quarter of 2021, according to a preliminary release.
April 9, 2021
Consumer prices rose 0.73% over the previous month in March, quickening from February’s 0.46% increase.
April 6, 2021
Industrial production rose 1.5% in year-on-year, calendar-day adjusted terms in February, below the 2.9% increase logged in January. February’s slowdown was driven by softer output growth in the manufacturing sector, as well as activity in the mining and quarrying sector swinging into contraction.
March 8, 2021
Industrial production rose 2.8% in year-on-year, calendar-day adjusted terms in January, below the 4.7% jump logged in December 2020. January’s slowdown was driven by softer output growth in the mining and quarrying, and manufacturing sectors.
March 8, 2021
Consumer prices rose 0.46% on a monthly basis in February, following the previous month’s 0.37% increase and recording the highest rise since April 2019.