map Latvia
Although the boom continued in the first half of 2022, the Russian war in Ukraine will drag growth in Latvia down in the coming months. Almost all sectors will be affected by a substantial fall in demand growth and by escalating prices. Firms will largely refrain from investing, preferring to deplete their stocks. Moreover, the decline in the purchasing power of households will curb growth in consumption. However, the labour market will remain tight next year. For 2022, we still expect GDP growth to reach 2.9%, but it will then fall back to 0.6% in 2023. We expect a revival of GDP growth in Latvia to 2.3% in 2024 in line with the recovery in the EU.
Main Economic Indicators201920202021202220232024
Population, 1000 persons191419001884...
GDP, real change in %2.6-
GDP per capita (EUR at PPP)217202159023590...
Gross industrial production, real change in %0.9-1.56.7...
Unemployment rate - LFS, in %, average6.
Average gross monthly wages, EUR107611431277...
Consumer prices, % p.a.
Fiscal balance in % of GDP-0.6-4.3-7.0-6.5-4.0-2.0
Public debt in % of GDP36.542.043.6...
Current account in % of GDP-0.62.6-4.2-5.6-3.5-3.3
FDI inflow, EUR m9998163185...
Gross external debt in % of GDP116.7121.3109.3...

Basic data are continuously updated.

* Forecasts are changed beginning of January, April, July and November.
See Press Conferences.


Executive summary

Branimir Jovanović
in: Bracing for the Winter
wiiw Forecast Report No. Autumn 2022, October 2022 , pp. I-VIII


Monthly Report No. 7-8/2022

Vasily Astrov, Alexandra Bykova, Rumen Dobrinsky, Selena Duraković, Richard Grieveson, Doris Hanzl-Weiss, Gabor Hunya, Branimir Jovanović, Niko Korpar, Sebastian Leitner, Isilda Mara, Bernhard Moshammer, Olga Pindyuk, Sandor Richter, Bernd Christoph Ströhm, Maryna Tverdostup, Nina Vujanović, Zuzana Zavarská and Adam Żurawski
wiiw Monthly Report No. 7-8, July-August 2022
58 pages including 4 Tables and 21 Figures