Latvia skyline

Latvia Economy

Latvia's economy in numbers:

Nominal GDP of USD 40.9 billion in 2022.

GDP per capita of USD 21,779 compared to the global average of USD 10,589.

Average real GDP growth of 2.9% over the last decade.

Share of the region's population
Share of the region's GDP

Economic structure:

In 2021, services accounted for 76% of overall GDP, manufacturing 12%, other industrial activity 8%, and agriculture 4%. Looking at GDP by expenditure, private consumption accounted for 55% of GDP in 2021, government consumption 20%, fixed investment 27%, and net exports -2%.

GDP by economic sector
GDP by type of expenditure

International trade:

In 2021, manufactured products made up 59% of total merchandise exports, mineral fuels 6%, food 18%, ores and metals 3% and agricultural raw materials 13%, with other categories accounting for 1% of the total. In the same period, manufactured products made up 67% of total merchandise imports, mineral fuels 9%, food 15%, ores and metals 2% and agricultural raw materials 4%, with other goods accounting for 3% of the total. Total exports were worth USD 22 billion in 2022, while total imports were USD 26 billion.

Key exports
Key imports
Key export partners
Key import partners

Economic growth:

The economy recorded average annual growth of 2.9% in the decade to 2022. To read more about GDP growth in Latvia, go to our dedicated page.

Fiscal policy:

Latvia's fiscal deficit averaged 2.1% of GDP in the decade to 2022. Find out more on our dedicated page.

Unemployment:

The unemployment rate averaged 9.3% in the decade to 2022. For more information on Latvia's unemployment click here.

Inflation:

Inflation averaged 2.9% in the decade to 2022. Go to our Latvia inflation page for extra insight.

Monetary Policy:

Euro Area monetary policy rate ended 2022 at 2.50%, up from 0.75% a decade earlier. See our Latvia monetary policy page for additional details.

Exchange Rate:

From end-2012 to end-2022 the euro weakened by 18.2% vs the U.S. dollar. For more info on the euro, click here.
The economy started 2024 on a stronger footing, with annual GDP growth rebounding in Q1 after three consecutive quarters of decline. The upturn was spearheaded by public expenditure, which expanded at the fastest pace in 17 years, coupled with recovering private spending and a milder drop in exports. Turning to Q2, our panelists expect GDP growth to reach a two-year high, as inflation ground to a halt through May, marking an over three-year low. That said, other data is less upbeat: In April, industrial output declined at a sharper rate compared to Q1, while retail sales growth slowed from the prior three-month period. In addition, goods exports remained in contraction in the same month. In other news, an Abu Dhabi-based developer recently announced a EUR 3 billion Riga Waterfront project, which should boost investment in the medium term and tourism over the longer term.
Projections out to 2033.

47 indicators covered including both annual and quarterly frequencies.

Consensus Forecasts based on a panel of 18 expert analysts.

Want to get insight on the economic outlook for Latvia in the coming years? FocusEconomics collects projections out to 2033 on 47 economic indicators for Latvia from a panel of 18 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Latvia economy. To download a sample report on the Latvia's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page .

Latvia Economic Data

2019 2020 2021 2022 2023
Population (million) 1.9 1.9 1.9 1.9 1.9
GDP (USD bn) 34.2 34.3 39.4 40.3 43.6
GDP per capita (USD) 17,823 17,990 20,825 21,508 23,167
GDP (EUR bn) 30.6 30.1 33.3 38.4 40.3
GDP per capita (EUR) 15,923 15,781 17,617 20,462 21,428
Economic Growth (Nominal GDP, ann. var. %) 4.9 -1.5 10.8 15.1 5.1
Economic Growth (GDP, ann. var. %) 0.6 -3.5 6.7 3.0 -0.3
Domestic Demand (ann. var. %) 1.2 -4.3 10.9 4.0 1.6
Private Consumption (ann. var. %) 0.0 -4.3 7.3 7.2 -1.3
Government Consumption (ann. var. %) 5.6 2.1 3.5 2.8 7.0
Fixed Investment (ann. var. %) 1.5 -2.2 7.2 0.6 8.2
Exports (G&S, ann. var. %) 1.3 0.4 9.0 10.3 -5.9
Imports (G&S, ann. var. %) 2.2 -1.1 15.1 11.1 -2.8
Industrial Production (ann. var. %) 0.8 -1.8 6.6 0.8 -4.3
Retail Sales (ann. var. %) 2.3 1.5 -3.5 3.1 -2.0
Wages (ann. var. %) 7.2 6.2 11.8 7.5 11.9
Unemployment (% of active population, aop) 6.3 8.1 7.5 6.8 6.5
Fiscal Balance (% of GDP) -0.5 -4.4 -7.2 -4.6 -2.2
Public Debt (% of GDP) 36.7 42.7 44.4 41.8 43.6
Money (ann. var. of M2 %) 8.0 13.1 7.9 6.4 2.3
Inflation (CPI, ann. var. %, eop) 2.3 -0.5 7.8 20.9 0.6
Inflation (HICP, ann. var. %, eop) 2.1 -0.5 7.9 20.7 0.9
Inflation (HICP, ann. var. %, aop) 2.7 0.1 3.2 17.2 9.1
Inflation (PPI, ann. var. %, aop) 1.9 -1.9 13.1 30.7 1.1
ECB Refinancing Rate (%, eop) 0.00 0.00 0.00 2.50 4.50
ECB Overnight Deposit Rate (%, eop) -0.50 -0.50 -0.50 2.00 4.00
3-Month EURIBOR (%, eop) -0.38 -0.55 -0.57 2.13 3.91
10-Year Bond Yield (%, eop) 0.16 -0.29 0.30 3.50 3.49
Stock Market (var. of OMXR %) 10.7 10.4 12.1 -9.5 15.9
Exchange Rate (USD per EUR, eop) 1.12 1.22 1.14 1.07 1.10
Exchange Rate (USD per EUR, aop) 1.12 1.14 1.18 1.05 1.08
Current Account Balance (EUR bn) -0.2 0.9 -1.3 -1.8 -1.6
Current Account Balance (% of GDP) -0.6 2.9 -3.9 -4.8 -4.0
Merchandise Trade Balance (EUR bn) -2.6 -1.5 -2.8 -4.1 -3.7
Merchandise Exports (EUR bn) 12.8 13.4 16.2 20.7 18.3
Merchandise Imports (EUR bn) 15.4 15.0 19.0 24.8 22.1
Merchandise Exports (ann. var. %) 1.4 5.4 20.6 27.9 -11.6
Merchandise Imports (ann. var. %) 2.1 -2.6 26.5 30.9 -11.1
Foreign Direct Investment (EUR bn) 0.8 0.8 2.9 1.3 1.1

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