Latvia Economy

Europe & Central Asia · High income · Capital: Riga

Updated 17 Oct 2026

GDP Annual Growth Rate in Latvia increased to 3.38 percent in Q2 2026 from 2.92 percent in Q1 2026. Inflation Rate in Latvia increased to 3.09 percent in Aug 2026 from 2.59 percent in Jul 2026.

GDP Growth
3.4%
▲ +0.5 pp Q2 2026 · OECD
Inflation Rate
3.1%
▲ +0.5 pp Aug 2026 · BIS
Interest Rate
2.50%
▲ +0.25 pp Sep 2026 · BIS (ECB)
Unemployment
7.3%
■ 0.0 pp Aug 2026 · OECD

GDP Growth Rate

Real GDP, annual % change. Hatched bars are IMF projections.

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Inflation vs Interest Rate

Monthly data, %. Source: BIS, BIS (ECB).

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Key Highlights

  • Real GDP grew 3.4% in Q2 2026 (previous year: 2.9%).
  • Consumer price inflation was 3.1% in Aug 2026, compared with 2.6% in the previous period.
  • The ECB policy rate (which applies to all euro-area members) stood at 2.50% at the end of Sep 2026 (previous: 2.25%).
  • The unemployment rate was 7.3% in Aug 2026 (previous: 7.3%).
  • General government debt was 46.9% of GDP in 2025.
  • The IMF projects real GDP growth of 2.3% for 2026 (World Economic Outlook projection).

Main Indicators

IndicatorLastPreviousPeriodTrendSource
GDP Annual Growth Rate3.4%2.9%Q2 2026OECD
Interest Rate2.50%2.25%Sep 2026BIS (ECB)
Inflation Rate3.1%2.6%Aug 2026BIS
Unemployment Rate7.3%7.3%Aug 2026OECD
Government Debt to GDP46.9%46.2%2025IMF
Balance of Trade-$2.2B-$0.7B2025World Bank
Current Account to GDP-5.3%-3.5%2025World Bank
GDP$48.6B$44.0B2025World Bank

GDP

IndicatorLastPreviousPeriodTrendSource
GDP per Capita$26,312$23,5792025World Bank
GDP per Capita PPP$46,137$43,8732025World Bank
Gross National Income$48.2B$42.8B2025World Bank
GDP from Agriculture4.0%3.9%2025World Bank
GDP from Industry18.7%18.5%2025World Bank
GDP from Manufacturing10.0%9.9%2025World Bank
GDP from Services64.2%64.7%2025World Bank
Gross Fixed Capital Formation23.5%22.2%2025World Bank
Household Consumption to GDP57.6%58.4%2025World Bank
GDP Growth Rate0.86%0.70%Q2 2026OECD

Labour

IndicatorLastPreviousPeriodTrendSource
Youth Unemployment Rate13.0%13.6%2025World Bank
Labour Force Participation Rate60.5%60.8%2025World Bank
Employment Rate56.5%56.6%2025World Bank
Population1.85M1.87M2025World Bank

Prices

IndicatorLastPreviousPeriodTrendSource
GDP Deflator Growth3.6%2.8%2025World Bank
Core Inflation Rate3.1%2.9%Dec 2025OECD
Inflation Rate MoM-0.08%-0.25%Dec 2025OECD
Food Inflation4.2%5.2%Dec 2025OECD

Money

IndicatorLastPreviousPeriodTrendSource
Foreign Exchange Reserves$6.1B$5.1B2025World Bank
Government Bond 10Y Yield3.82%3.73%Aug 2026OECD
Interbank Rate2.64%2.51%Sep 2026OECD

Trade

IndicatorLastPreviousPeriodTrendSource
Current Account-$2.6B-$1.5B2025World Bank
Exports$30.4B$28.5B2025World Bank
Imports$32.6B$29.2B2025World Bank
Foreign Direct Investment$0.40B$1.53B2025World Bank
Remittances$1.44B$1.34B2025World Bank
Terms of Trade103.7102.92024World Bank
Tourist Arrivals3.20M8.34M2020World Bank
Tourism Revenues$0.88B$0.62B2007World Bank

Government

IndicatorLastPreviousPeriodTrendSource
Government Budget-4.0%-1.7%2025IMF
Government Revenues to GDP42.6%39.7%2024IMF
Government Spending to GDP44.5%43.1%2024IMF
Tax Revenue to GDP17.6%16.6%2024World Bank
Military Expenditure3.61%3.30%2025World Bank

Business

IndicatorLastPreviousPeriodTrendSource
Industrial Production1.2%2.1%Jul 2026OECD
Business Confidence101.62101.44Sep 2026OECD

Consumer

IndicatorLastPreviousPeriodTrendSource
Retail Sales YoY3.3%5.9%Aug 2026OECD
Consumer Confidence101.61101.16Sep 2026OECD

Housing

IndicatorLastPreviousPeriodTrendSource
Residential Property Prices11.4%10.3%Q2 2026BIS

Latvia economy explained in simple words

Size of the economy

The economy of Latvia produced goods and services worth $48.6B in 2025, making it the 101st largest of 214 economies with data.

With a population of about 1.8 million, GDP per person is $26,312. The World Bank classifies Latvia as a “high income” economy.

Economic growth

Real GDP grew 3.4% in 2026, compared with world growth of 3.5% (IMF).

Over the last 10 years growth averaged 1.7% a year, ranging from -1.7% to 3.4%.

The IMF projects growth of 2.3% in 2026.

Prices and interest rates

Consumer price inflation was 3.1% in Aug 2026 (reference: the European Central Bank’s 2% target).

The European Central Bank policy rate, which applies to all euro-area members, was 2.50% at the end of Sep 2026.

The difference between the two — the real interest rate — is about -0.59%.

Jobs

The unemployment rate was 7.3% in Aug 2026 (world: 4.8%).

About 60.5% of people aged 15 and over are in the labour force (working or looking for work).

Government finances

General government debt was 46.9% of GDP in 2025, compared with a median of 52.9% across 191 economies.

The government budget balance was -4.0% of GDP (2025) — a deficit, meaning spending exceeded revenue.

Trade and external position

The current account was -5.3% of GDP in 2025 — a deficit with the rest of the world.

Exports of goods and services were $30.4B and imports $32.6B.

Foreign exchange reserves (including gold) stood at $6.1B.

Structure of the economy

By sector, value added is split roughly as: services 64.2%, industry 18.7%, agriculture 4.0% of GDP.

How to read this page

The four boxes at the top show the most-watched numbers: GDP growth (how fast the economy is expanding), inflation (how fast prices are rising), the central bank policy rate (the base cost of borrowing) and unemployment (the share of job-seekers without work). The small arrow shows the change from the previous reading.

The tabs group all available indicators by topic — GDP, labour, prices, money, trade, government and housing. Each row shows the latest value, the previous value, the period it refers to, a small trend line and the source. Click any indicator to open its full history, chart, statistics and comparison with other countries.

Monthly and quarterly figures come from national statistics offices and central banks — via the OECD, the Bank for International Settlements (BIS) and, for India, the Ministry of Statistics (MoSPI); annual figures come from the World Bank and the IMF. Different indicators are published at different times, so the periods shown can differ.

Frequently asked questions

What is the GDP growth rate of Latvia?
The latest GDP growth rate of Latvia is 3.4% (Q2 2026), compared with 2.9% in the previous period. Source: OECD — Organisation for Economic Co-operation and Development.
What is the inflation rate of Latvia?
The latest inflation rate of Latvia is 3.1% (Aug 2026), compared with 2.6% in the previous period. Source: Bank for International Settlements (BIS).
What is the interest rate of Latvia?
The latest interest rate of Latvia is 2.50% (Sep 2026), compared with 2.25% in the previous period. Source: BIS / European Central Bank (euro area policy rate).
What is the unemployment rate of Latvia?
The latest unemployment rate of Latvia is 7.3% (Aug 2026), compared with 7.3% in the previous period. Source: OECD — Organisation for Economic Co-operation and Development.
What is the government debt to GDP ratio of Latvia?
The latest government debt to GDP ratio of Latvia is 46.9% (2025), compared with 46.2% in the previous period. Source: IMF — World Economic Outlook.

Data are sourced from official international organisations (IMF, World Bank, BIS) and national authorities, and are shown for educational and informational purposes only. They are not investment advice and no recommendation is made. Figures may be revised by the source; IMF figures for the current and future years are projections. This page was last updated on Saturday, October 17, 2026.