GDP in Latvia
Latvia - GDP
GDP growth records best result since Q2 2021 in Q1 2022
A second estimate revealed that GDP growth improved to 6.7% year on year in the first quarter, from 3.1% in the fourth quarter of last year. Q1's reading marked the best reading since Q2 2021.
The upturn reflected improvements in private consumption, fixed investment and exports. Household spending growth improved to 15.1% year on year in the first quarter, which marked the best reading since Q2 2021 (Q4 2021: +6.5% yoy). Fixed investment rebounded, growing 1.9% in Q1, contrasting the 2.0% decrease logged in the previous quarter. That said, public consumption growth moderated to the slowest pace since Q4 2021, expanding 0.3% (Q4 2021: +3.4% yoy).
Exports of goods and services growth accelerated to 8.6% year on year in the first quarter, which marked the best reading since Q2 2021 (Q4 2021: +5.0% yoy). In addition, imports of goods and services rose to 15.6% in Q1 (Q4 2021: +9.8% yoy), and similarly logged the highest figure since Q2 2021. As such, the external sector contributed 0.5 percentage points to the overall reading in Q1, mirroring the previous quarter’s contribution.
On a seasonally-adjusted quarter-on-quarter basis, economic activity rebounded, expanding 3.6% in Q1 and contrasting the previous period's 0.2% fall. Q1's reading marked the best result since Q3 2020.
Turning to the second quarter, GDP growth is expected to have eased markedly. International sanctions on Russia and Belarus—key trading partners for Latvia—should take a toll on exports and on businesses that rely on these markets. Moreover, the repercussions from the war in Ukraine are set to dampen growth further through higher price pressures, elevated commodity prices and downbeat business sentiment.
FocusEconomics panelists project GDP to grow 2.2% in 2022, which is down 0.3 percentage points from last month’s forecast, and 2.8% in 2023.
Latvia - GDP Data
|Economic Growth (GDP, annual variation in %)||3.3||1.8||3.8||4.3||2.2|
5 years of economic forecasts for more than 30 economic indicators.
Latvia GDP Chart
Source: Central Statistical Bureau of Latvia and FocusEconomics calculations.
|Bond Yield||0.55||0.0 %||Jun 30|
|Exchange Rate||1.12||0.65 %||Dec 31|
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June 3, 2022
Industrial output expanded 3.7% in year-on-year terms in April, which followed March's 6.3% increase.
May 31, 2022
A second estimate revealed that GDP growth improved to 6.7% year on year in the first quarter, from 3.1% in the fourth quarter of last year.
May 6, 2022
Industrial production grew 6.3% year-on-year in March (February: -0.3% yoy).
May 6, 2022
Consumer prices rose 2.20% in April over the previous month, slowing down from March's 3.37% rise.
April 28, 2022
GDP expanded 5.9% on an annual basis in the first quarter of 2021, according to preliminary national accounts data released by the Statistical Institute on 28 April.