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2024: 0.4% GDP cut to €40.2 billion
Latvia's domestic gross product (GDP) decreased by 0.4% in 2024 compared to 2023, amounting to €40.208 billion. Negative dynamics is associated, among other things, with a decline in the information and communication industry, where a decrease of 1.3% was recorded. The data was released by the Central Statistical Office of Latvia at the end of February 2025.
According to ProFinansy, in the fourth quarter of 2024, GDP also decreased by 0.4% compared to the same period in 2023, amounting to €11 billion, according to seasonal and calendar unadjusted data. At the same time, in comparison with the third quarter of 2024, a slight increase of 0.1% was recorded, according to seasonally and calendar adjusted indicators.
The most significant drop was observed in the construction industry, where volumes decreased by 6.9%. The manufacturing industry recorded a decline of 4.6%, the main impact of which was a decrease in the production of finished metal products by 9.3%, as well as computers, electronic and optical equipment by 14.6%.
The information and communication industry, which had a significant impact on the overall decline in GDP, showed a decline of 1.3%. In the transport and warehouse sector, all sub-sectors showed negative dynamics, except for air transport, which grew by 14%. In land and pipeline transport, the decline was 7.8%, in water transport - 12.7%, and in the field of postal and courier services - 6.5%.
At the same time, positive dynamics was observed in a number of industries. Production in agriculture, forestry and fisheries increased by 3.7%, helped by growth in crop and livestock production by 3% and in forestry and logging by 4.6%.
The extractive industry grew by 17.1% due to a 16% increase in peat mining and processing and an 18.7% increase in gravel and sand quarrying. In the financial and insurance industry, the increase was 3.1%, in the retail to trade industry - 0.9%, and in the hotel industry and catering - 1.3%.[1]
2022: GDP growth of 2%
In 2022 GDP Latvia , it grew by 2%. This was announced at the end of February 2023 by the Central Statistical Office of Latvia.
According to the agency's report, in 2022, compared with the year before last, the total added value of agriculture, forestry and fisheries increased by 7%; at the same time, livestock and crop production increased by 2.5%, fish output decreased by 2.6%, and in forestry the growth was 13.6%.
Manufacturing rose 2.7%. The Central Statistical Office (CSO) of Latvia reports that 14 out of 22 sub-sectors finished the year with a plus. Including manufacturers of electrical equipment, an increase of 8.6%, non-metallic mineral products, an increase of 5.3%, metal products, in the pharmaceutical industry, etc.
The added value of construction products decreased by 11.3%, and here the decline was in all major sub-industries - in the construction of buildings by 9.8%, in engineering construction by 13.1%. Retail grew 4.3%, transport and storage 2.3%, information and communication technology rose 14.4%. According to the CSO, 57.5% of the hospitality and catering industry became the leader in terms of growth.
The CSO also reports that in 2022, total household spending increased by 8%. Food costs almost did not increase 0.2%, and housing-related goods and services decreased by 6.9%. The agency notes that the high cost of energy resources prompted the population to save, and a relatively warm winter helped them in this.
According to the ministry, the future potential of the Latvian economy will increase new markets for the supply of raw materials, strengthening the country's energy independence and reorienting from the Russian market to the Western ones. In connection with the start of a special military operation of the Russian Federation in Ukraine at the end of 2022. The ministry notes that in the conditions of the open labor market, the process will continue, in which salaries within the country will gradually equal salaries in other states, which will negatively affect the competitiveness of companies in less profitable business segments in Latvia. A shrinking population and slowing income growth will affect private consumption growth in 2023.[2]
2021: Agriculture's share of GDP - less than 6%
2020: Trade with Russia accounts for 7% of Latvia's GDP
2012: WTO membership reduces industry's share of Latvia's GDP from 40% to 14%
In 2012, the Institute of European Studies of Latvia stated that the republic's membership in the WTO led to the fact that flows of cheap goods poured into the country, which ruined the Latvian industry. So, in the early 1990s, the share of industry occupied about 40%, and by 2012 it became - 14%, while maintaining the volume of GDP. All large enterprises of the country were closed, the state lost from joining the WTO. Latvia then entered the European Union, which removed the undisturbed barriers.
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