National Debt (% of GDP): Latvia

Analysis# Latvia National Debt (% of GDP) Latvia's national debt stands at 47.4% of GDP in 2026, approaching its all-time peak of 48.2% recorded in 2010 during the post-financial crisis period. The metric has surged dramatically since 1998, when it was just 9%, representing a 383.7% increase over nearly three decades. Latvia's lowest debt level of 9% occurred in 2007, just before the global financial crisis reshaped the country's fiscal position. The past decade reveals a volatile trajectory marked by steady decline through the mid-2010s—falling from 40.3% in 2017 to 37.9% in 2019—followed by sharp increases beginning in 2020. The COVID-19 pandemic triggered a 6.1-percentage-point spike that year, and debt has remained elevated ever since. Projections indicate continued upward pressure through 2026, suggesting Latvia faces persistent structural fiscal challenges requiring policy attention.