Latvia skyline

Latvia GDP

Latvia GDP

Economic Growth in Latvia

Latvia's economy recorded an average growth rate of 2.5% in the decade to 2022, above the 1.4% average for the Euro Area. In 2022, real GDP growth was 3.4%. For more GDP information, visit our dedicated page.

Latvia GDP Chart

Note: This chart displays Economic Growth (GDP, annual variation in %) for Latvia from 2014 to 2023.
Source: Central Statistical Bureau of Latvia.

Latvia GDP Data

2018 2019 2020 2021 2022
Economic Growth (GDP, ann. var. %) 4.0 0.6 -3.5 6.7 3.0
GDP (USD bn) 34.4 34.2 34.3 39.4 40.3
GDP (EUR bn) 29.2 30.6 30.1 33.3 38.4
Economic Growth (Nominal GDP, ann. var. %) 8.0 4.9 -1.5 10.8 15.1

Economy falters in Q1

A first release showed that economic activity contracted by 0.2% year on year in Q1, following the 0.5% dip recorded in Q4 and marking the best reading since Q1 2023. On a seasonally adjusted quarter-on-quarter basis, economic growth improved to 0.8% in Q1, following the previous period's 0.4% growth.

Absent a breakdown of economic activity, the softer decline likely stemmed from smaller drops in industrial activity and goods exports. Softening consumer pessimism and stronger confidence in the services sector, coupled with slowing inflation in January–March, likely also supported private spending. That said, still-tight monetary conditions in the Eurozone should have kept a lid on domestic and external demand, keeping the economy in contraction. A full breakdown will be released on 31 May.

Analysts at the EIU commented on the outlook: “We expect growth to rebound modestly to 1.8% in 2024, strengthening to 2.7% in 2025. Year-on-year inflation has slowed significantly in 2023 and 2024, which will strengthen household purchasing power. […] A continued tight labour market will ensure a recovery in domestic demand, with key energy support measures set to remain in place. Economic sentiment will continue to improve, with easing global supply chains and wider availability of semiconductor chips supporting the industrial sector. Steady disbursement of EU funds will support government spending and investment projects, while the easing of ECB interest rates from the second half of 2024 will further support loan demand and credit expansion.”

Consensus Forecasts and Projections for the next ten years

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Latvian GDP projections for the next ten years 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. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable GDP forecast available for Latvian GDP.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Latvian GDP projections.

Want to get access to the full dataset of Latvian GDP forecasts? Send an email to info@focus-economics.com.

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