Latvia: Economic growth decelerates in the first quarter of 2026
GDP reading: Latvia’s GDP increased 2.5% in annual terms in Q1, following 2.9% growth in the prior quarter.
In seasonally adjusted quarter-on-quarter terms, the economy expanded 0.6% in Q1, following a 0.7% expansion in the prior quarter.
Drivers: Compared to the prior period’s data, figures in Q1 softened for private consumption (+2.0% on a year-on-year basis vs +2.2% in Q4), government consumption (-1.5% vs +9.2% in Q4), fixed investment (+3.2% vs +11.8% in Q4) and imports of goods and services (+3.0% vs +6.1% in Q4). In contrast, the reading for exports of goods and services improved in Q1 (+1.4% vs -2.1% in Q4).