Latvia Economy

Latvia’s gdp growth annual decreased to -2.6 by -70.79% on July 2020 from -8.9 in the previous Quarterly. On a year on year basis Latvia’s gdp growth annual decreased by -157.78%. Latvia’s gdp growth annual trend is down since the current value of -2.6 is lower than the 12 month moving average of 1.375.Latvia’s inflation cpi icnreased to -0.7 by 133.33% on October 2020 from -0.3 in the previous Monthly. On a year on year basis Latvia’s inflation cpi decreased by -126.92%. Latvia’s inflation cpi trend is down since the current value of -0.7 is lower than the 12 month moving average of 0.883333.Latvia’s unemployment rate decreased to 8.4 by -2.33% on May 2020 from 8.6 in the previous Quarterly. On a year on year basis Latvia’s unemployment rate decreased by -1.18%. Latvia’s unemployment rate trend is down since the current value of 8.4 is lower than the 12 month moving average of 7.3.

Latvia Macroeconomic model

MacroVar Latvia Macro model analyzes economic growth and inflation to assess the current economic conditions. Economic growth and inflation expectations are the two most important economic indicators used to assess economic conditions, forecast financial market returns and policymaker response. Latvia’s current macroeconomic conditions are summarized below the chart. Click here to learn more about MacroVar Latvia macroecononic model and the leading economic indicators used for analysis.

Latvia Macro Model

Latvia News

Latvia Economy

Economic Activity OverviewActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
gdp growth annual-1.3-1.5-0.133333-1.46429-1.0-1.00.252021-01-01
inflation cpi2.72.60.0384615-4.857141.01.00.1166672021-06-30
unemployment rate8.17.90.0253165-0.01219511.0-1.00.752020-07-01
Business & Consumer Forecast OverviewActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
ESI - Economic Composite101.790.70.1212790.2873421.01.012021-04-01
Reserves & Outstanding DebtActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
government debt13430.212749.90.05335730.3504521.01.00.72021-01-01
government debt to gdp43.5370.1756761.338711.01.002020-01-31
external debt3619036423-0.006397060.02185451.01.00.2333332021-01-01
foreign exchange reserves444143910.01138690.05236971.01.00.4166672021-06-30
gold reserves6.666.7-0.005970150.00604231.01.00.9666672020-07-01
TradeActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
current account-55-172.23529-1.73333-1.0-1.00.2166672021-05-31
current account to gdp3-0.6-6-1.24391.01.002020-01-31
Monetary PolicyActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
central bank balance sheet2386823690.80.00747970.2211261.01.00.7666672021-04-30
banks balance sheet25078.424295.20.03223680.1662091.01.012021-03-28
money supply m218176.618078.90.005404090.1341021.01.00.852021-05-31
Fiscal PolicyActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
Government budget-25254400033166800-8.614360.635584-1.0-1.00.652021-06-30
government revenues11282901182650-0.04596460.2063911.01.00.952021-06-30
fiscal expenditure145160011388900.2745740.2898871.01.00.9833332021-06-30

Latvia’s gdp growth annual decreased to -2.6 by -70.79% on July 2020 from -8.9 in the previous Quarterly. On a year on year basis Latvia’s gdp growth annual decreased by -157.78%. Latvia’s gdp growth annual trend is down since the current value of -2.6 is lower than the 12 month moving average of 1.375.Latvia’s inflation cpi icnreased to -0.7 by 133.33% on October 2020 from -0.3 in the previous Monthly. On a year on year basis Latvia’s inflation cpi decreased by -126.92%. Latvia’s inflation cpi trend is down since the current value of -0.7 is lower than the 12 month moving average of 0.883333.Latvia’s unemployment rate decreased to 8.4 by -2.33% on May 2020 from 8.6 in the previous Quarterly. On a year on year basis Latvia’s unemployment rate decreased by -1.18%. Latvia’s unemployment rate trend is down since the current value of 8.4 is lower than the 12 month moving average of 7.3.Latvia’s business confidence decreased to -1.1 by -76.09% on September 2020 from -4.6 in the previous Monthly. On a year on year basis Latvia’s business confidence decreased by -57.69%. Latvia’s business confidence trend is down since the current value of -1.1 is lower than the 12 month moving average of -5.99167.Latvia’s consumer confidence icnreased to -14.4 by 1.41% on August 2020 from -14.2 in the previous Monthly. On a year on year basis Latvia’s consumer confidence increased by 144.07%. Latvia’s consumer confidence trend is down since the current value of -14.4 is lower than the 12 month moving average of -13.225.

Latvia Business activity

Business ActivityActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
business confidence2.8-2.6-2.07692-1.142861.01.00.2833332021-04-30
ESI - Economic Composite101.790.70.1212790.2873421.01.012021-04-01
Manufacturing sector3-5.6-1.53571-1.159571.01.00.3833332021-04-01
Consumer sector-7.2-19.1-0.623037-0.7154151.01.00.03333332021-04-01
Construction sector-13.7-21.1-0.350711-0.5784621.01.00.4166672021-04-01
Retail sector1.4-12.8-1.10938-1.053031.01.00.1666672021-04-01
Services sector-3.8-18.7-0.796791-0.887241.01.00.2166672021-04-01

Latvia’s business confidence decreased to -1.1 by -76.09% on September 2020 from -4.6 in the previous Monthly. On a year on year basis Latvia’s business confidence decreased by -57.69%. Latvia’s business confidence trend is down since the current value of -1.1 is lower than the 12 month moving average of -5.99167.Latvia’s ESI – Economic Composite decreased to 90.4 by -206.0% on January 2021 from 92.3 in the previous . On a year on year basis Latvia’s ESI – Economic Composite decreased by -969.0%. Latvia’s ESI – Economic Composite trend is down since the current value of 90.4 is lower than the 12 month moving average of 91.325.Latvia’s Manufacturing sector icnreased to -5.8 by 175.0% on January 2021 from -5.7 in the previous . On a year on year basis Latvia’s Manufacturing sector increased by 6571.0%. Latvia’s Manufacturing sector trend is down since the current value of -5.8 is lower than the 12 month moving average of -6.45833.Latvia’s Consumer sector icnreased to -18.2 by 3582.0% on January 2021 from -13.4 in the previous . On a year on year basis Latvia’s Consumer sector increased by 29565.0%. Latvia’s Consumer sector trend is down since the current value of -18.2 is lower than the 12 month moving average of -13.1833.Latvia’s Construction sector decreased to -20.0 by -476.0% on January 2021 from -21.0 in the previous . On a year on year basis Latvia’s Construction sector increased by 10000.0%. Latvia’s Construction sector trend is down since the current value of -20.0 is lower than the 12 month moving average of -20.0.Latvia’s Retail sector decreased to -6.1 by -37727.0% on January 2021 from 2.2 in the previous . On a year on year basis Latvia’s Retail sector decreased by -21091.0%. Latvia’s Retail sector trend is down since the current value of -6.1 is lower than the 12 month moving average of -4.41667.Latvia’s Services sector icnreased to -16.6 by 4188.0% on January 2021 from -11.7 in the previous . On a year on year basis Latvia’s Services sector decreased by -42549.0%. Latvia’s Services sector trend is down since the current value of -16.6 is lower than the 12 month moving average of -14.2917.

Latvia Consumer activity

Consumer ActivityActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
consumer confidence-1.8-15.7-0.88535-0.9485711.01.00.052021-04-30
car registrations345132040.0770911-0.18048-1.0-1.00.252020-07-01
Consumer - General economic situation (next 12 months)-5.4-32.8-0.835366-0.8851061.01.00.08333332021-04-01
Consumer - Financial situation (next 12 months)9.21.36.07692-21.01.00.03333332021-04-01
Consumer - Price trends (next 12 months)23.320.80.1201922.477611.01.00.8833332021-04-01
Consumer - Unemployment expectations (next 12 months)11.233.6-0.666667-0.822504-1.0-1.00.03333332021-04-01
Consumer - Major purchases (next 12 months)-19.9-28.3-0.29682-0.4532971.01.00.03333332021-04-01
Consumer - Savings (next 12 months)1.41.7-0.176471-1.130841.01.00.01666672021-04-01
Consumer - Households Financial situation21.122.4-0.05803570.6484381.01.00.6166672021-04-01

Latvia’s consumer confidence icnreased to -14.4 by 1.41% on August 2020 from -14.2 in the previous Monthly. On a year on year basis Latvia’s consumer confidence increased by 144.07%. Latvia’s consumer confidence trend is down since the current value of -14.4 is lower than the 12 month moving average of -13.225.Latvia’s car registrations icnreased to 3910.0 by 27.11% on May 2020 from 3076.0 in the previous Quarterly. On a year on year basis Latvia’s car registrations decreased by -6.57%. Latvia’s car registrations trend is down since the current value of 3910.0 is lower than the 12 month moving average of 4228.0.Latvia’s Consumer – General economic situation (next 12 months) icnreased to -27.9 by 4020.0% on January 2021 from -19.9 in the previous . On a year on year basis Latvia’s Consumer – General economic situation (next 12 months) increased by 40727.0%. Latvia’s Consumer – General economic situation (next 12 months) trend is down since the current value of -27.9 is lower than the 12 month moving average of -21.5333.Latvia’s Consumer – Financial situation (next 12 months) decreased to 1.9 by -5250.0% on January 2021 from 4.0 in the previous . On a year on year basis Latvia’s Consumer – Financial situation (next 12 months) decreased by -6935.0%. Latvia’s Consumer – Financial situation (next 12 months) trend is down since the current value of 1.9 is lower than the 12 month moving average of 1.98333.Latvia’s Consumer – Price trends (next 12 months) decreased to 7.0 by -5513.0% on January 2021 from 15.6 in the previous . On a year on year basis Latvia’s Consumer – Price trends (next 12 months) decreased by -3204.0%. Latvia’s Consumer – Price trends (next 12 months) trend is down since the current value of 7.0 is lower than the 12 month moving average of 15.1417.Latvia’s Consumer – Unemployment expectations (next 12 months) icnreased to 35.9 by 5815.0% on January 2021 from 22.7 in the previous . On a year on year basis Latvia’s Consumer – Unemployment expectations (next 12 months) increased by 55273.0%. Latvia’s Consumer – Unemployment expectations (next 12 months) trend is down since the current value of 35.9 is lower than the 12 month moving average of 26.5417.Latvia’s Consumer – Major purchases (next 12 months) icnreased to -36.5 by 2167.0% on January 2021 from -30.0 in the previous . On a year on year basis Latvia’s Consumer – Major purchases (next 12 months) increased by 4484.0%. Latvia’s Consumer – Major purchases (next 12 months) trend is down since the current value of -36.5 is lower than the 12 month moving average of -27.7917.Latvia’s Consumer – Savings (next 12 months) icnreased to -24.4 by 5641.0% on January 2021 from -15.6 in the previous . On a year on year basis Latvia’s Consumer – Savings (next 12 months) increased by 383.0%. Latvia’s Consumer – Savings (next 12 months) trend is down since the current value of -24.4 is lower than the 12 month moving average of -16.6333.Latvia’s Consumer – Households Financial situation decreased to 9.1 by -3106.0% on January 2021 from 13.2 in the previous . On a year on year basis Latvia’s Consumer – Households Financial situation increased by 4677.0%. Latvia’s Consumer – Households Financial situation trend is down since the current value of 9.1 is lower than the 12 month moving average of 11.7917.

Latvia Manufacturing activity

Manufacturing ActivityActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
Manufacturing sector3-5.6-1.53571-1.159571.01.00.3833332021-04-01
Manufacturing - Order Books-10.7-20.4-0.47549-0.6635221.01.00.01666672021-04-01
Manufacturing - Selling Price expectations (next months)22.411.70.91453-3.835441.01.00.22021-04-01
Manufacturing - Production trend (recent months)3.3-7.2-1.45833-1.226031.01.00.2666672021-04-01
Manufacturing - Export Order Books-16-23.8-0.327731-0.5389051.01.00.01666672021-04-01
Manufacturing - Finished Products (Stock Levels)-5.4-4.30.2558141.84211-1.0-1.00.8666672021-04-01
Manufacturing - Production expectations (next months)14.2-0.8-18.75-1.47021.01.00.06666672021-04-01
industrial production10.120.5-0.507317-2.655741.01.00.1333332021-05-31
industrial production mom0.71.5-0.533333-3.333331.01.00.2166672020-12-31
capacity utilization7573.10.0259918-0.0170381.0-1.00.3166672020-10-01

Latvia’s Manufacturing sector icnreased to -5.8 by 175.0% on January 2021 from -5.7 in the previous . On a year on year basis Latvia’s Manufacturing sector increased by 6571.0%. Latvia’s Manufacturing sector trend is down since the current value of -5.8 is lower than the 12 month moving average of -6.45833.Latvia’s Manufacturing – Order Books decreased to -21.0 by -498.0% on January 2021 from -22.1 in the previous . On a year on year basis Latvia’s Manufacturing – Order Books increased by 995.0%. Latvia’s Manufacturing – Order Books trend is down since the current value of -21.0 is lower than the 12 month moving average of -22.6167.Latvia’s Manufacturing – Selling Price expectations (next months) icnreased to 5.4 by 4595.0% on January 2021 from 3.7 in the previous . On a year on year basis Latvia’s Manufacturing – Selling Price expectations (next months) decreased by -41765.0%. Latvia’s Manufacturing – Selling Price expectations (next months) trend is down since the current value of 5.4 is lower than the 12 month moving average of -0.666667.Latvia’s Manufacturing – Production trend (recent months) icnreased to -1.8 by 6364.0% on January 2021 from -1.1 in the previous . On a year on year basis Latvia’s Manufacturing – Production trend (recent months) decreased by -1000.0%. Latvia’s Manufacturing – Production trend (recent months) trend is down since the current value of -1.8 is lower than the 12 month moving average of -6.66667.Latvia’s Manufacturing – Export Order Books decreased to -23.6 by -1387.0% on January 2021 from -27.4 in the previous . On a year on year basis Latvia’s Manufacturing – Export Order Books increased by 631.0%. Latvia’s Manufacturing – Export Order Books trend is down since the current value of -23.6 is lower than the 12 month moving average of -26.5833.Latvia’s Manufacturing – Finished Products (Stock Levels) icnreased to -3.8 by 53333.0% on January 2021 from -0.6 in the previous . On a year on year basis Latvia’s Manufacturing – Finished Products (Stock Levels) decreased by -41667.0%. Latvia’s Manufacturing – Finished Products (Stock Levels) trend is down since the current value of -3.8 is lower than the 12 month moving average of -1.93333.Latvia’s Manufacturing – Production expectations (next months) decreased to -0.2 by -10454.0% on January 2021 from 4.4 in the previous . On a year on year basis Latvia’s Manufacturing – Production expectations (next months) decreased by -10260.0%. Latvia’s Manufacturing – Production expectations (next months) trend is down since the current value of -0.2 is lower than the 12 month moving average of 1.35.Latvia’s industrial production decreased to -1.2 by -57.14% on October 2020 from -2.8 in the previous Monthly. On a year on year basis Latvia’s industrial production decreased by -116.67%. Latvia’s industrial production trend is down since the current value of -1.2 is lower than the 12 month moving average of -2.40833.Latvia’s industrial production mom decreased to -0.1 by -120.0% on October 2020 from 0.5 in the previous Monthly. On a year on year basis Latvia’s industrial production mom decreased by -95.24%. Latvia’s industrial production mom trend is down since the current value of -0.1 is lower than the 12 month moving average of -0.0166667.Latvia’s capacity utilization icnreased to 72.7 by 2.68% on August 2020 from 70.8 in the previous Quarterly. On a year on year basis Latvia’s capacity utilization decreased by -2.02%. Latvia’s capacity utilization trend is down since the current value of 72.7 is lower than the 12 month moving average of 74.8333.

 

Latvia Services activity

Services ActivityActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
Services sector-3.8-18.7-0.796791-0.887241.01.00.2166672021-04-01
Services - Demand Expectations (next 3 months)8.5-9.1-1.93407-1.188471.01.00.22021-04-01
Services - Prices expectations (next 3 months)4-3.4-2.17647-1.239521.01.00.352021-04-01
Services - Business activity (past 3 months)-9.5-23.2-0.590517-0.630351.01.00.4166672021-04-01
Services - Demand (past 3 months)-10.5-23.6-0.555085-0.6546051.01.00.352021-04-01
Services - Employment (past 3 months)-6.1-13.5-0.548148-0.6684781.01.00.6333332021-04-01
Services - Employment (next 3 months)4.8-8.7-1.55172-1.140761.01.00.2333332021-04-01

Latvia’s Services sector icnreased to -16.6 by 4188.0% on January 2021 from -11.7 in the previous . On a year on year basis Latvia’s Services sector decreased by -42549.0%. Latvia’s Services sector trend is down since the current value of -16.6 is lower than the 12 month moving average of -14.2917.Latvia’s Services – Demand Expectations (next 3 months) icnreased to -19.5 by 6957.0% on January 2021 from -11.5 in the previous . On a year on year basis Latvia’s Services – Demand Expectations (next 3 months) decreased by -36712.0%. Latvia’s Services – Demand Expectations (next 3 months) trend is down since the current value of -19.5 is lower than the 12 month moving average of -9.71667.Latvia’s Services – Prices expectations (next 3 months) icnreased to -6.3 by 4000.0% on January 2021 from -4.5 in the previous . On a year on year basis Latvia’s Services – Prices expectations (next 3 months) decreased by -25366.0%. Latvia’s Services – Prices expectations (next 3 months) trend is down since the current value of -6.3 is lower than the 12 month moving average of -4.75833.Latvia’s Services – Business activity (past 3 months) icnreased to -16.2 by 3500.0% on January 2021 from -12.0 in the previous . On a year on year basis Latvia’s Services – Business activity (past 3 months) decreased by -46818.0%. Latvia’s Services – Business activity (past 3 months) trend is down since the current value of -16.2 is lower than the 12 month moving average of -15.8917.Latvia’s Services – Demand (past 3 months) icnreased to -14.2 by 2137.0% on January 2021 from -11.7 in the previous . On a year on year basis Latvia’s Services – Demand (past 3 months) decreased by -48378.0%. Latvia’s Services – Demand (past 3 months) trend is down since the current value of -14.2 is lower than the 12 month moving average of -17.3083.Latvia’s Services – Employment (past 3 months) icnreased to -10.6 by 3086.0% on January 2021 from -8.1 in the previous . On a year on year basis Latvia’s Services – Employment (past 3 months) decreased by -127778.0%. Latvia’s Services – Employment (past 3 months) trend is down since the current value of -10.6 is lower than the 12 month moving average of -10.925.Latvia’s Services – Employment (next 3 months) icnreased to -12.5 by 6892.0% on January 2021 from -7.4 in the previous . On a year on year basis Latvia’s Services – Employment (next 3 months) decreased by -50323.0%. Latvia’s Services – Employment (next 3 months) trend is down since the current value of -12.5 is lower than the 12 month moving average of -9.13333.

Latvia Retail Sector

 

Retail ActivityActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
Retail sector1.4-12.8-1.10938-1.053031.01.00.1666672021-04-01
Retail - Orders Expectations (next 3 months)6.2-28.7-1.21603-1.077021.01.00.22021-04-01
Retail - Prices expectations (next 3 months)23130.769231-4.150681.01.00.01666672021-04-01
Retail - Business activity (past 3 months)-12.5-25.7-0.513619-0.550361.01.00.352021-04-01
Retail - Stock Levels-2.8-1.80.5555561.8-1.0-1.00.8833332021-04-01
Retail - Business activity expectations (next 3 months)14-14.4-1.97222-1.278881.01.00.152021-04-01
Retail - Employment expectations (next 3 months)2.4-11.4-1.21053-1.060611.01.00.22021-04-01
retail sales3.215.6-0.794872-6.333331.01.00.0752021-05-31
retail sales MoM-3.93.8-2.02632-1.53425-1.0-1.00.452021-05-31

Latvia’s Retail sector decreased to -6.1 by -37727.0% on January 2021 from 2.2 in the previous . On a year on year basis Latvia’s Retail sector decreased by -21091.0%. Latvia’s Retail sector trend is down since the current value of -6.1 is lower than the 12 month moving average of -4.41667.Latvia’s Retail – Orders Expectations (next 3 months) icnreased to -15.6 by 7143.0% on January 2021 from -9.1 in the previous . On a year on year basis Latvia’s Retail – Orders Expectations (next 3 months) decreased by -46279.0%. Latvia’s Retail – Orders Expectations (next 3 months) trend is down since the current value of -15.6 is lower than the 12 month moving average of -16.2083.Latvia’s Retail – Prices expectations (next 3 months) decreased to 0.8 by -7838.0% on January 2021 from 3.7 in the previous . On a year on year basis Latvia’s Retail – Prices expectations (next 3 months) decreased by -8769.0%. Latvia’s Retail – Prices expectations (next 3 months) trend is down since the current value of 0.8 is lower than the 12 month moving average of 6.3.Latvia’s Retail – Business activity (past 3 months) decreased to -2.9 by -15000.0% on January 2021 from 5.8 in the previous . On a year on year basis Latvia’s Retail – Business activity (past 3 months) decreased by -17632.0%. Latvia’s Retail – Business activity (past 3 months) trend is down since the current value of -2.9 is lower than the 12 month moving average of -8.025.Latvia’s Retail – Stock Levels decreased to -1.5 by -1176.0% on January 2021 from -1.7 in the previous . On a year on year basis Latvia’s Retail – Stock Levels increased by 40000.0%. Latvia’s Retail – Stock Levels trend is down since the current value of -1.5 is lower than the 12 month moving average of -0.633333.Latvia’s Retail – Business activity expectations (next 3 months) icnreased to -16.9 by 143636.0% on January 2021 from -1.1 in the previous . On a year on year basis Latvia’s Retail – Business activity expectations (next 3 months) decreased by -23101.0%. Latvia’s Retail – Business activity expectations (next 3 months) trend is down since the current value of -16.9 is lower than the 12 month moving average of -5.81667.Latvia’s Retail – Employment expectations (next 3 months) decreased to -9.6 by -490000.0% on January 2021 from 0.2 in the previous . On a year on year basis Latvia’s Retail – Employment expectations (next 3 months) decreased by -26552.0%. Latvia’s Retail – Employment expectations (next 3 months) trend is down since the current value of -9.6 is lower than the 12 month moving average of -6.8.Latvia’s retail sales decreased to 1.4 by -78.12% on November 2020 from 6.4 in the previous Monthly. On a year on year basis Latvia’s retail sales decreased by -17.65%. Latvia’s retail sales trend is down since the current value of 1.4 is lower than the 12 month moving average of 2.2.Latvia’s retail sales MoM decreased to -1.9 by -290.0% on November 2020 from 1.0 in the previous Monthly. On a year on year basis Latvia’s retail sales MoM decreased by -733.33%. Latvia’s retail sales MoM trend is down since the current value of -1.9 is lower than the 12 month moving average of 0.433333.

Latvia Construction Sector

 

Construction ActivityActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
Construction sector-13.7-21.1-0.350711-0.5784621.01.00.4166672021-04-01
Construction - Current Order Books-29.3-35-0.162857-0.117471.01.00.4333332021-04-01
Construction - Prices over next 3 months28.514.21.00704-6.71.01.00.12021-04-01
Construction - Employment over next 3 months2-7.1-1.28169-1.06271.01.00.3833332021-04-01
Construction - Building Activity (past 3 months)-14.2-25.4-0.440945-0.4600761.01.00.4666672021-04-01
Construction - Factors Limiting (None)2120.70.0144928-0.156627-1.0-1.00.3166672021-04-01
Construction - Factors Limiting (Insufficient Demand)34.837-0.05945950.0545455-1.01.00.6166672021-04-01
Construction - Factors Limiting (Weather)28.828.9-0.003460210.788821.01.00.9333332021-04-01
Construction - Factors Limiting (Shortage of labour force)13.112.80.02343750.05645161.01.00.4666672021-04-01
Construction - Factors Limiting (Shortage of material - equipment)3.93.20.218750.6251.01.00.6583332021-04-01
Construction - Factors Limiting (Other)12.718.1-0.298343-0.569492-1.0-1.00.01666672021-04-01
Construction - Factors Limiting (Financial Constraints)11.912-0.00833333-0.0403226-1.0-1.00.62021-04-01

Latvia’s Construction sector decreased to -20.0 by -476.0% on January 2021 from -21.0 in the previous . On a year on year basis Latvia’s Construction sector increased by 10000.0%. Latvia’s Construction sector trend is down since the current value of -20.0 is lower than the 12 month moving average of -20.0.Latvia’s Construction – Current Order Books decreased to -29.0 by -1714.0% on January 2021 from -35.0 in the previous . On a year on year basis Latvia’s Construction – Current Order Books increased by 4500.0%. Latvia’s Construction – Current Order Books trend is down since the current value of -29.0 is lower than the 12 month moving average of -29.4167.Latvia’s Construction – Prices over next 3 months decreased to -2.0 by -12857.0% on January 2021 from 7.0 in the previous . On a year on year basis Latvia’s Construction – Prices over next 3 months decreased by -11053.0%. Latvia’s Construction – Prices over next 3 months trend is down since the current value of -2.0 is lower than the 12 month moving average of 6.25.Latvia’s Construction – Employment over next 3 months icnreased to -12.0 by 5000.0% on January 2021 from -8.0 in the previous . On a year on year basis Latvia’s Construction – Employment over next 3 months increased by 50000.0%. Latvia’s Construction – Employment over next 3 months trend is down since the current value of -12.0 is lower than the 12 month moving average of -11.25.Latvia’s Construction – Building Activity (past 3 months) decreased to -18.0 by -1000.0% on January 2021 from -20.0 in the previous . On a year on year basis Latvia’s Construction – Building Activity (past 3 months) increased by 50000.0%. Latvia’s Construction – Building Activity (past 3 months) trend is down since the current value of -18.0 is lower than the 12 month moving average of -17.4167.Latvia’s Construction – Factors Limiting (None) decreased to 29.0 by -333.0% on January 2021 from 30.0 in the previous . On a year on year basis Latvia’s Construction – Factors Limiting (None) decreased by -1944.0%. Latvia’s Construction – Factors Limiting (None) trend is down since the current value of 29.0 is lower than the 12 month moving average of 29.75.Latvia’s Construction – Factors Limiting (Insufficient Demand) decreased to 32.0 by -1111.0% on January 2021 from 36.0 in the previous . On a year on year basis Latvia’s Construction – Factors Limiting (Insufficient Demand) increased by 1429.0%. Latvia’s Construction – Factors Limiting (Insufficient Demand) trend is down since the current value of 32.0 is lower than the 12 month moving average of 33.75.Latvia’s Construction – Factors Limiting (Weather) decreased to 14.0 by -1765.0% on January 2021 from 17.0 in the previous . On a year on year basis Latvia’s Construction – Factors Limiting (Weather) decreased by -3913.0%. Latvia’s Construction – Factors Limiting (Weather) trend is down since the current value of 14.0 is lower than the 12 month moving average of 18.25.Latvia’s Construction – Factors Limiting (Shortage of labour force) icnreased to 11.0 by 3750.0% on January 2021 from 8.0 in the previous . On a year on year basis Latvia’s Construction – Factors Limiting (Shortage of labour force) decreased by -3889.0%. Latvia’s Construction – Factors Limiting (Shortage of labour force) trend is down since the current value of 11.0 is lower than the 12 month moving average of 12.8333.Latvia’s Construction – Factors Limiting (Shortage of material / equipment) icnreased to 4.0 by 3333.0% on January 2021 from 3.0 in the previous . On a year on year basis Latvia’s Construction – Factors Limiting (Shortage of material / equipment) increased by 30000.0%. Latvia’s Construction – Factors Limiting (Shortage of material / equipment) trend is down since the current value of 4.0 is lower than the 12 month moving average of 2.41667.Latvia’s Construction – Factors Limiting (Other) icnreased to 15.0 by 714.0% on January 2021 from 14.0 in the previous . On a year on year basis Latvia’s Construction – Factors Limiting (Other) increased by 5000.0%. Latvia’s Construction – Factors Limiting (Other) trend is down since the current value of 15.0 is lower than the 12 month moving average of 14.0.Latvia’s Construction – Factors Limiting (Financial Constraints) icnreased to 16.0 by 667.0% on January 2021 from 15.0 in the previous . On a year on year basis Latvia’s Construction – Factors Limiting (Financial Constraints) increased by 30000.0%. Latvia’s Construction – Factors Limiting (Financial Constraints) trend is down since the current value of 16.0 is lower than the 12 month moving average of 13.0.

Latvia GDP

 

ActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
Real GDP59271907225450-0.1796790.137231-1.01.00.7333332021-01-01
gdp growth annual-1.3-1.5-0.133333-1.46429-1.0-1.00.252021-01-01
gdp34.117234.3139-0.005732370.1041881.01.002019-01-31
gdp growth-1.71.1-2.54545-2.21429-1.0-1.00.22021-01-01

Latvia’s Real GDP icnreased to 7029630.0 by 11.74% on May 2020 from 6290950.0 in the previous Quarterly. On a year on year basis Latvia’s Real GDP increased by 17.87%. Latvia’s Real GDP trend is down since the current value of 7029630.0 is lower than the 12 month moving average of 6274570.0.Latvia’s gdp growth annual decreased to -2.6 by -70.79% on July 2020 from -8.9 in the previous Quarterly. On a year on year basis Latvia’s gdp growth annual decreased by -157.78%. Latvia’s gdp growth annual trend is down since the current value of -2.6 is lower than the 12 month moving average of 1.375.Latvia’s gdp decreased to 34.1172 by -0.57% on January 2019 from 34.3139 in the previous Yearly. On a year on year basis Latvia’s gdp increased by 10.42%. Latvia’s gdp trend is down since the current value of 34.1172 is lower than the 12 month moving average of 29.797.Latvia’s gdp growth decreased to 7.1 by -200.0% on July 2020 from -7.1 in the previous Quarterly. On a year on year basis Latvia’s gdp growth increased by 1083.33%. Latvia’s gdp growth trend is down since the current value of 7.1 is lower than the 12 month moving average of 0.333333.

Latvia inflation

ActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
inflation cpi2.72.60.0384615-4.857141.01.00.1166672021-06-30
core inflation rate21.70.176471-211.01.00.01666672021-06-30
consumer price index cpi111.9111.50.003587440.02754821.01.00.6666672021-06-30
Producer Price Index112.9110.60.02079570.08245451.01.012021-05-31
PPI Index8.35.10.627451-4.458331.01.00.06666672021-05-31

Latvia’s inflation cpi icnreased to -0.7 by 133.33% on October 2020 from -0.3 in the previous Monthly. On a year on year basis Latvia’s inflation cpi decreased by -126.92%. Latvia’s inflation cpi trend is down since the current value of -0.7 is lower than the 12 month moving average of 0.883333.Latvia’s core inflation rate decreased to 0.6 by -25.0% on November 2020 from 0.8 in the previous Monthly. On a year on year basis Latvia’s core inflation rate decreased by -70.0%. Latvia’s core inflation rate trend is down since the current value of 0.6 is lower than the 12 month moving average of 0.991667.Latvia’s consumer price index cpi decreased to 108.3 by -0.28% on November 2020 from 108.6 in the previous Monthly. On a year on year basis Latvia’s consumer price index cpi decreased by -0.73%. Latvia’s consumer price index cpi trend is down since the current value of 108.3 is lower than the 12 month moving average of 108.933.Latvia’s Producer Price Index icnreased to 105.0 by 0.38% on November 2020 from 104.6 in the previous Monthly. On a year on year basis Latvia’s Producer Price Index decreased by -0.85%. Latvia’s Producer Price Index trend is down since the current value of 105.0 is lower than the 12 month moving average of 104.75.Latvia’s PPI Index decreased to -0.9 by -30.77% on November 2020 from -1.3 in the previous Monthly. On a year on year basis Latvia’s PPI Index increased by 125.0%. Latvia’s PPI Index trend is down since the current value of -0.9 is lower than the 12 month moving average of -1.93333.

Latvia Government Policy

ActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
government budget-4.5-0.66.50.0465116-1.0-1.002020-01-31
Government budget-25254400033166800-8.614360.635584-1.0-1.00.652021-06-30
government revenues11282901182650-0.04596460.2063911.01.00.952021-06-30
fiscal expenditure145160011388900.2745740.2898871.01.00.9833332021-06-30

Latvia’s Government budget decreased to -107323000.0 by -54.8% on November 2020 from -237419000.0 in the previous Monthly. On a year on year basis Latvia’s Government budget decreased by -180.36%. Latvia’s Government budget trend is down since the current value of -107323000.0 is lower than the 12 month moving average of -83020500.0.Latvia’s government revenues decreased to 968119.0 by -1.42% on November 2020 from 982052.0 in the previous Monthly. On a year on year basis Latvia’s government revenues increased by 4.73%. Latvia’s government revenues trend is down since the current value of 968119.0 is lower than the 12 month moving average of 1024450.0.Latvia’s fiscal expenditure decreased to 1099520.0 by -10.01% on November 2020 from 1221840.0 in the previous Monthly. On a year on year basis Latvia’s fiscal expenditure increased by 3.38%. Latvia’s fiscal expenditure trend is down since the current value of 1099520.0 is lower than the 12 month moving average of 1104760.0.

Latvia Monetary Policy

ActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
central bank balance sheet2386823690.80.00747970.2211261.01.00.7666672021-04-30
banks balance sheet25078.424295.20.03223680.1662091.01.012021-03-28
money supply m011458.511001.90.04150190.1497941.01.00.8333332021-06-30
money supply m116487.616386.90.006145150.1847861.01.00.92021-05-31
money supply m218176.618078.90.005404090.1341021.01.00.852021-05-31

Latvia’s central bank balance sheet icnreased to 21462.7 by 7.7% on June 2020 from 19927.5 in the previous Monthly. On a year on year basis Latvia’s central bank balance sheet increased by 17.18%. Latvia’s central bank balance sheet trend is down since the current value of 21462.7 is lower than the 12 month moving average of 19133.4.Latvia’s banks balance sheet icnreased to 23389.6 by 1.51% on September 2020 from 23042.6 in the previous Monthly. On a year on year basis Latvia’s banks balance sheet increased by 4.07%. Latvia’s banks balance sheet trend is down since the current value of 23389.6 is lower than the 12 month moving average of 22422.1.Latvia’s money supply m2 icnreased to 16888.9 by 1.85% on October 2020 from 16581.4 in the previous Monthly. On a year on year basis Latvia’s money supply m2 increased by 12.95%. Latvia’s money supply m2 trend is down since the current value of 16888.9 is lower than the 12 month moving average of 15965.0.

Latvia Employment

ActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
EEI - Employment Composite102.992.70.1100320.4637271.01.012021-04-01
unemployment rate8.17.90.0253165-0.01219511.0-1.00.752020-07-01
youth unemployment rate14.114.4-0.0208333-0.194286-1.0-1.00.1666672021-05-31
long term unemployment rate2.42.10.142857-0.25-1.0-1.00.6166672021-01-01

Latvia’s EEI – Employment Composite decreased to 89.8 by -507.0% on January 2021 from 94.6 in the previous . On a year on year basis Latvia’s EEI – Employment Composite decreased by -1153.0%. Latvia’s EEI – Employment Composite trend is down since the current value of 89.8 is lower than the 12 month moving average of 91.4083.Latvia’s unemployment rate decreased to 8.4 by -2.33% on May 2020 from 8.6 in the previous Quarterly. On a year on year basis Latvia’s unemployment rate decreased by -1.18%. Latvia’s unemployment rate trend is down since the current value of 8.4 is lower than the 12 month moving average of 7.3.Latvia’s youth unemployment rate icnreased to 13.9 by 3.73% on October 2020 from 13.4 in the previous Monthly. On a year on year basis Latvia’s youth unemployment rate increased by 29.91%. Latvia’s youth unemployment rate trend is down since the current value of 13.9 is lower than the 12 month moving average of 14.3583.Latvia’s long term unemployment rate icnreased to 2.2 by 4.76% on July 2020 from 2.1 in the previous Quarterly. On a year on year basis Latvia’s long term unemployment rate decreased by -37.14%. Latvia’s long term unemployment rate trend is down since the current value of 2.2 is lower than the 12 month moving average of 2.68333.

Latvia Trade & Capital Flows

ActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
current account-55-172.23529-1.73333-1.0-1.00.2166672021-05-31
current account to gdp3-0.6-6-1.24391.01.002020-01-31
exports1340.011141.460.1739440.2188561.01.00.9666672021-03-31
imports1605.851466.270.09519390.5392321.01.012021-05-31
balance of trade-357.17-216.780.6476151.68107-1.0-1.00.9833332021-05-31

Latvia’s current account icnreased to 230.0 by 206.67% on October 2020 from 75.0 in the previous Monthly. On a year on year basis Latvia’s current account increased by 114.95%. Latvia’s current account trend is down since the current value of 230.0 is lower than the 12 month moving average of 49.0833.Latvia’s current account to gdp decreased to -0.5 by -50.0% on January 2019 from -1.0 in the previous Yearly. On a year on year basis Latvia’s current account to gdp decreased by -97.58%. Latvia’s current account to gdp trend is down since the current value of -0.5 is lower than the 12 month moving average of -1.10833.Latvia’s exports icnreased to 1311.45 by 2.85% on October 2020 from 1275.15 in the previous Monthly. On a year on year basis Latvia’s exports increased by 7.69%. Latvia’s exports trend is down since the current value of 1311.45 is lower than the 12 month moving average of 1077.5.Latvia’s imports decreased to 1387.98 by -2.79% on October 2020 from 1427.85 in the previous Monthly. On a year on year basis Latvia’s imports increased by 0.61%. Latvia’s imports trend is down since the current value of 1387.98 is lower than the 12 month moving average of 1229.05.Latvia’s balance of trade decreased to -76.5 by -49.93% on October 2020 from -152.8 in the previous Monthly. On a year on year basis Latvia’s balance of trade decreased by -53.61%. Latvia’s balance of trade trend is down since the current value of -76.5 is lower than the 12 month moving average of -160.367.

Latvia Reserves

ActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
foreign exchange reserves444143910.01138690.05236971.01.00.4166672021-06-30
gold reserves6.666.7-0.005970150.00604231.01.00.9666672020-07-01

Latvia’s foreign exchange reserves decreased to 4228.0 by -1.83% on November 2020 from 4307.0 in the previous Monthly. On a year on year basis Latvia’s foreign exchange reserves increased by 2.8%. Latvia’s foreign exchange reserves trend is down since the current value of 4228.0 is lower than the 12 month moving average of 4227.5.Latvia’s gold reserves decreased to 6.66 by -0.6% on July 2020 from 6.7 in the previous Quarterly. On a year on year basis Latvia’s gold reserves increased by 0.6%. Latvia’s gold reserves trend is down since the current value of 6.66 is lower than the 12 month moving average of 6.62667.Latvia’s government debt icnreased to 12755.9 by 12.96% on April 2020 from 11292.0 in the previous Quarterly. On a year on year basis Latvia’s government debt increased by 22.17%. Latvia’s government debt trend is down since the current value of 12755.9 is lower than the 12 month moving average of 11008.8.Latvia’s government debt to gdp decreased to 36.9 by -0.81% on January 2019 from 37.2 in the previous Yearly. On a year on year basis Latvia’s government debt to gdp increased by 334.12%. Latvia’s government debt to gdp trend is down since the current value of 36.9 is lower than the 12 month moving average of 38.6167.Latvia’s external debt icnreased to 36983.0 by 1.48% on May 2020 from 36444.0 in the previous Quarterly. On a year on year basis Latvia’s external debt decreased by -1.52%. Latvia’s external debt trend is down since the current value of 36983.0 is lower than the 12 month moving average of 35952.5.

Latvia Debt

DebtActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
government debt13430.212749.90.05335730.3504521.01.00.72021-01-01
government debt to gdp43.5370.1756761.338711.01.002020-01-31
external debt3619036423-0.006397060.02185451.01.00.2333332021-01-01

Latvia’s government debt icnreased to 12755.9 by 12.96% on April 2020 from 11292.0 in the previous Quarterly. On a year on year basis Latvia’s government debt increased by 22.17%. Latvia’s government debt trend is down since the current value of 12755.9 is lower than the 12 month moving average of 11008.8.Latvia’s government debt to gdp decreased to 36.9 by -0.81% on January 2019 from 37.2 in the previous Yearly. On a year on year basis Latvia’s government debt to gdp increased by 334.12%. Latvia’s government debt to gdp trend is down since the current value of 36.9 is lower than the 12 month moving average of 38.6167.Latvia’s external debt icnreased to 36983.0 by 1.48% on May 2020 from 36444.0 in the previous Quarterly. On a year on year basis Latvia’s external debt decreased by -1.52%. Latvia’s external debt trend is down since the current value of 36983.0 is lower than the 12 month moving average of 35952.5.

Latvia Banking activity

Fiscal PolicyActualPreviousM/M%Y/Y%TrendSlopeZS5YUpdate
interbank rate0.170.17001.0-1.00.5083332021-06-02
bank lending rate3.793.690.02710030.0985507-1.01.00.8833332021-03-28
loans to private sector4323.24313.10.0023417-0.0495328-1.0-1.00.5833332021-05-31

Latvia’s interbank rate Latvia’s interbank rate trend is down since the current value of 0.17 is lower than the 12 month moving average of 0.17.Latvia’s bank lending rate icnreased to 4.36 by 18.48% on May 2020 from 3.68 in the previous Monthly. On a year on year basis Latvia’s bank lending rate increased by 18.8%. Latvia’s bank lending rate trend is down since the current value of 4.36 is lower than the 12 month moving average of 3.69917.Latvia’s loans to private sector decreased to 4430.6 by -0.59% on October 2020 from 4457.0 in the previous Monthly. On a year on year basis Latvia’s loans to private sector decreased by -11.16%. Latvia’s loans to private sector trend is down since the current value of 4430.6 is lower than the 12 month moving average of 4572.93.

Latvia macroeconomic model analysis

The two most important economic indicators of the Latvia economy are real economic growth expectations and inflation. MacroVar uses Latvia Manufacturing ESI Order Books to gauge economic growth expectations and Latvia Manufacturing ESI Selling Price expectations of next months to gauge inflation expectations. Latvia’s economy is healthy when it generates stable economic growth with low inflation. Policymakers (the government and the central bank) use fiscal and monetary policy to inject liquidity during slowdowns (to solve weak economic growth) and withdraw liquidity from an overheating economy (to solve high inflation).

The four economic environments

There are 4 economic environments based on economic growth and inflationary conditions. Financial assets are affected by economic growth and inflation expectations as explained in the diagram below.
MacroVar Growth Inflation Model

Read more on how to analyze a country’s macroeconomics in detail. MacroVar also provides a detailed analysis of  the global economy and the 40 largest economic in the world.Click here to learn more.
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