GDP in Latvia
Latvia - GDP
GDP records sharpest contraction since Q1 2021 in the third quarter according to preliminary data
According to a preliminary reading, GDP dropped 0.6% year on year in the third quarter, contrasting with the 2.9% expansion seen in the second quarter. Q3's reading marked the worst result since Q1 2021. A steeper decline in the primary and secondary sectors amid deteriorating operating conditions outweighed a robust expansion in the services sector. On a seasonally adjusted quarter-on-quarter basis, GDP declined 1.7% in Q3, contrasting the previous period's 0.2% growth. Q3's reading marked the sharpest sequential contraction in the EU this quarter. A detailed breakdown of the national accounts for the third quarter will be released on 30 November.
Looking ahead, the economy will be on the verge of a technical recession in Q4, as the country faces a winter energy crunch that will hit industrial output and consumer spending alike. With the third-highest inflation rate in the Eurozone in October, price pressures will continue to strain household budgets. Meanwhile, the prolongation of the Russia–Ukraine war looms over growth prospects via the loss of trade with Russia and Belarus.
The panel sees GDP growing 0.8% in 2023, which is down 0.3 percentage points from last month’s estimate, and 2.7% in 2024.
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|
Get a sample report showing our regional, country and commodities data and analysis.
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.
November 10, 2022
Harmonized inflation came in at 21.7% in October, down from September’s 22.0%.
November 4, 2022
Industrial output dropped 3.7% in year-on-year terms in September, which followed August's 1.0% decrease.
Latvia: GDP records sharpest contraction since Q1 2021 in the third quarter according to preliminary data
October 28, 2022
According to a preliminary reading, GDP dropped 0.6% year on year in the third quarter, contrasting with the 2.9% expansion seen in the second quarter.
October 10, 2022
Harmonized inflation came in at 22.0% in September, which was up from August’s 21.4%.
October 4, 2022
Industrial production declined 0.3% year on year in August (July: -2.9% yoy).