Latvia's Macroeconomic Analysis:
Nominal GDP of USD 40.9 billion in 2022.
Nominal GDP of USD 42.2 billion in 2023.
GDP per capita of USD 22,435 compared to the global average of USD 10,589.
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.
Average real GDP growth of 2.4% over the last decade.
Sector Analysis
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%.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.Main Economic Indicators
Economic growthThe 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.
Economic situation in Latvia
The economy weakened further in Q3, contracting 1.6% year on year and marking the worst performance in the Euro area (Q2: -0.5% yoy). The deterioration was due to a decline in domestic demand: Public spending decelerated and fixed investment continued to fall sharply, outweighing improving household spending growth. On the external front, both exports and imports of goods and services rebounded, marking their best readings in more than a year. Turning to Q4, our Consensus is for a rebound in GDP, buoyed by the ECB’s interest rate cuts. Nevertheless, available data is mixed: While retail sales accelerated in October and consumer sentiment improved from Q3 through November, industrial output and goods exports remained downbeat in the first month of the quarter and inflation more than doubled from Q3 in October–November.Latvia Economic Forecasts
Projections out to 2034.49 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 17 expert analysts.
Want to get insight on the economic outlook for Latvia in the coming years? FocusEconomics collects projections out to 2034 on 49 economic indicators for Latvia from a panel of 17 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.