GDP reading: GDP increased 0.7% on a seasonally adjusted quarter on quarter basis in the third quarter, contrasting the 0.6%...
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: Macrobond.
Latvia GDP Data
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Economic Growth (GDP, ann. var. %) | 0.7 | -3.5 | 6.9 | 1.8 | 1.7 |
| GDP (USD bn) | 33.1 | 33.3 | 38.2 | 37.9 | 42.2 |
| GDP (EUR bn) | 29.6 | 29.2 | 32.3 | 36.1 | 39.1 |
| Economic Growth (Nominal GDP, ann. var. %) | 5.0 | -1.2 | 10.5 | 11.8 | 8.2 |
GDP growth records best result since Q1 2023 in Q2
GDP reading: GDP growth picked up to 0.5% year on year in the second quarter, from 0.1% in the first quarter and marking the fastest growth since Q1 2023. On a seasonally adjusted quarter-on-quarter basis, GDP dropped 0.9% in Q2, contrasting the previous quarter's 0.8% growth and marking the sharpest downturn since Q2 2020.
Drivers: Domestically, government consumption was the chief driver of the improvement, rising 8.5% in Q2 (Q1: +8.2% yoy). In addition, fixed investment dropped at a more moderate pace of 5.7% in Q2, following the 9.3% decrease in the previous quarter. Less positively, private consumption increased 0.5% in the second quarter, which was below the first quarter's 0.7% expansion. On the external front, exports of goods and services fell 3.4% on an annual basis in the second quarter, which was below the first quarter's 3.0% contraction. Conversely, imports of goods and services dropped at a more moderate rate of 2.9% in Q2 (Q1: -6.4% yoy).
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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