wiiw Forecast Reports

LATVIA: Waiting for the tide to float the boats


Sebastian Leitner

in: Beneath the Veneer of Calm
wiiw Forecast Report No. Autumn 2023, October 2023 , pp. 88-91

Whereas in 2022 economic activity remained quite lively right up to the end of the year, in 2023 the effects of dwindling external demand and reluctant household consumption are dampening GDP growth. Inflation is declining significantly, so that real incomes are again increasing in H2. While public investment has been expanding this year, enterprises are in the process of running down their stocks. Given the still rather tight labour market, the unemployment rate will fall slightly in 2023 – and even more so in the coming two years. Assuming that the EU economy finds its way back on track next year, we expect a subdued revival in Latvia’s GDP growth, to 1.8% in 2024 and 2.3% in 2025.


Reference to wiiw databases: wiiw Annual Database, wiiw Monthly Database

Countries covered: Latvia