Latvia

map Latvia
With rising consumption and public investment, and with EU funds and defence spending supporting activity, economic growth is projected to be in the region of 3% by 2028. However, the same policies that support demand are also contributing to higher imports, fiscal deficits and public debt. The medium-term challenge is consequently to turn the current investment cycle into higher productivity and export capacity. Failure to do so risks the country entering the later forecast period with stronger headline growth but persistent fiscal and external imbalances.
        FORECAST*
Main Economic Indicators202320242025202620272028
Population, 1000 persons188718701853...
GDP, real change in %-1.00.52.22.12.43.1
GDP per capita (EUR at PPP)266202779029710...
Gross industrial production, real change in %-6.4-2.23.6...
Unemployment rate - LFS, in %, average6.56.96.96.76.56.3
Average gross monthly wages, EUR153716851815...
Consumer prices, % p.a.9.11.33.83.63.83.4
Fiscal balance in % of GDP-2.2-1.8-2.5-3.3-3.9-4.8
Public debt in % of GDP44.545.746.2...
Current account in % of GDP-5.6-3.4-5.2-6.1-5.8-5.7
FDI inflow, EUR m15621416279...
Gross external debt in % of GDP102.297.099.2...


Basic data are continuously updated.

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

publication_icon

Monthly Report No. 7-8/2026

Vasily Astrov, Alexandra Bykova, Selena Duraković, Meryem Gökten, Richard Grieveson, Ioannis Gutzianas, Gabor Hunya, Branimir Jovanović, Biljana Jovanovikj, Niko Korpar, Dzmitry Kruk, Isilda Mara, Michał Możdżeń, Emilia Penkova-Pearson, Olga Pindyuk, Sandor Richter, Marko Sošić, Bernd Christoph Ströhm and Marina Tverdostup
wiiw Monthly Report No. 7-8, July-August 2026
52 pages including 5 Tables

Details

publication_icon

Executive summary

Olga Pindyuk
in: The Crisis is Over, but its Scarring Effects are Hindering Recovery
wiiw Forecast Report No. Spring 2024, April 2024 , pp. I-VII Details

top