Real GDP Growth: Latvia

Analysis# Latvia Real GDP Growth Latvia's real GDP growth stands at 2.2% in 2026, representing a modest recovery from recent volatility. The country has experienced dramatic swings across its 34-year dataset, peaking at 12.8% in 2006 during the pre-financial crisis boom before plummeting to -16% in 2009. Despite these extremes, Latvia has achieved substantial long-term expansion, with cumulative growth of 119.3% since 1993, demonstrating resilience through multiple economic cycles. The 2009 financial crisis marked Latvia's most severe contraction, followed by a steady recovery through the 2010s. A sharp -0.4% contraction in 2024 interrupted the upward trajectory, but forecasts indicate renewed growth momentum ahead. The projected 2.2% expansion for 2026 suggests stabilization after short-term headwinds, though growth remains well below the double-digit rates that characterized the mid-2000s expansion.