In 2024 drop of GDP comprised 0.4 % and in the 4th quarter – also 0.4 %

Data compiled by the Central Statistical Bureau (CSB) show that in 2024, compared to 2023, the Gross Domestic Product (GDP) decreased by 0.4 %. Last year GDP at current prices amounted to EUR 40.2 billion.

Compared to the 4th quarter of 2023, in the 4th quarter of 2024, GDP decrease by 0.4 % (according to seasonally and calendar unadjusted data). Compared to the 3rd quarter, GDP at constant prices increased by 0.1 % (according to seasonally and calendar adjusted data). In the 4th quarter GDP at current prices was EUR 11.0 billion.

* Revised starting with the data on Q1 2021. More detailed information on revisions can be found here.

Production approach

(2024 compared to 2023, at constant prices)

In 2024 value added of producing sectors reduced by 2.8 %, but in the services sector increased by 0.4 %.

Increase was registered in volume of agriculture, forestry and fishing – of 3.7 %, which was affected by production output increase in crop and livestock production (of 3.0 %) and forestry and logging (4.6 %), but reduction was observed in fishery (0.8 %).

A rise in manufacture of peat extraction and processing of 16.0 % and in quarrying of gravel and sand of 18.7 % affected the overall manufacturing volume increases in mining by 17.1 %.

Manufacturing witnessed a drop of 4.6 %, which was affected by the reduction in 11 out of 22 manufacturing sub-sectors. In the sub-sector having the largest share in manufacturing – production – output in manufacture of wood and of products of wood remained at the level of the previous year. Recession was observed in manufacture of fabricated metal products – a drop of 9.3 %, manufacture of computer, electronic and optical products – of 14.6 %. Growth in manufacture of other non-metallic products (of 1.6 %), manufacture of food products (0.6 %) and repair and installation of machinery and equipment (7.2 %) had a positive effect on the total value added of the sector.

In electricity, gas, steam and air conditioning supply manufacturing volumes fell by 1.0 %.

The value added of construction reduced by 6.9 % in 2024. Over the year, construction of buildings fell by 19.4 %. Volume of civil engineering increased by 9.1 %, of specialized construction by 0.4 %.

Retail trade rose by 0.9 %, of which retail sale of non-food products by 2.3 %, but retail sale of food products reduced by 1.7 %. Wholesale trade, retail trade and repair of motor vehicles and motorcycles increased by 3.8 % and wholesale trade – by 0.1 %.

All sub-sectors of the transport and storage sector showed a negative upturn in 2024, except for air transport (growth of 14.0 %). In land and pipeline transport activity there was a drop of 7.8 %, in water transport sector activities – of 12.7 %, in warehousing and support activities for transportation – of 9.5 %, in postal and courier activities – of 6.5 %. In general, the added value of the transport and storage sector decreased by 7.9 %.

The volume of services provided in accommodation and catering services increased by 1.3 %, of which accommodation experienced a rise of 6.7 %, but catering services a drop of 1.2 %.

In 2024, the information and communication sector experienced a decrease of 1.3 %, of which in the largest sub-sectors: computer programming and consultancy sector – of 2.8 % and provision of telecommunication services – of 2.7 %. In turn, an increase is observed in information services of 5.0 %.

Rise in financial and insurance activities comprised 3.1 %. It was determined by a rise of 3.4 % and 26.4 %, respectively, in insurance, reinsurance and pension funding and activities auxiliary to financial services and insurance activities. Earned premiums of insurance companies in insurance, reinsurance and pension funding increased. Rise in activities auxiliary to financial services and insurance activities was affected by security and commodity contracts brokerage, other activities auxiliary to financial services, except insurance and pension funding and investment management companies. In turn, there was a drop of 0.4 % in financial service activities.

Volume of professional, scientific and technical activities has reduced by 4.6 % in 2024. Negative development of the sector was promoted by drop in activities of head offices, management consultancy activities and advertising and market research (of 0.9 %), architectural and engineering services, technical testing and analysis (0.6 %), provision of other professional, scientific and technical activities (14.9 %), provision of legal and accounting activities (2.2 %) and provision of advertising and market research (15.6 %). Scientific research work (of 2.4 %) promoted positive development of the sector.

Rise of administrative and support service activities of 7.7 % was promoted by positive development in rental and leasing services sector of 18.4 %, building maintenance and provision of landscape architectural services of 13.1 %, office administrative activities of 7.5 % and labour recruitment and provision of personnel of 9.5 %. The sector was negatively affected by drop in security and investigation activities by 16.2 % and in travel agency, tour operator reservation services by 6.7 %.

Value added of the arts, entertainment and recreation sector has gone up by 5.5 %. Development of the sector was positively promoted by an increase in sports activities, entertainment and recreation activities (of 8.7 %), as well as in gambling and betting activities (9.0 %). Development of the sector was negatively affected by drop of 2.3 % in creative and arts activities.

In 2024 the volume of taxes on products (mainly value added tax, excise and customs taxes) increased 2024 by 0.1 %, which was promoted by growth in income from value added tax.

Expenditure approach

(2024 compared to 2023, at constant prices)

In 2024 total household expenditure increased by 0.6 % compared to the previous year. Volume of food products consumed purchased both in retail sale and in e-environment decreased by 1.2 %. The use of housing-related goods and services (expenditure on housing, water, electricity, gas and other fuels) decreased by 0.2 %. Use of transport by households (public transport, purchase and exploitation of transport vehicles) increased by 3.7 %. Expenditure on health-related services went up by 3.1 %.

Government final consumption expenditure grew by 7.6 %.

Investment in gross fixed capital formation fell by 6.7 %, of which in dwellings, other buildings and structures it has gone down by 5.0 %. Investment in machinery and equipment (of which in transport vehicles) reduced by 9.6 %, in intellectual property products (research, computer software, databases, copyrights, etc.) – by 6.6 %.

Exports of goods and services fell by 1.7 %, of which exports of goods by 1.3 %, but exports of services – by 2.7 %. The main commodities in exports were wood and products of wood (except furniture), mineral products and electrical machinery and equipment. In 2024, the main services exported were exports of transport services and other economic activity (R&D, professional and management consulting, technical, trade-related and other business).

Imports of goods and services reduced by 2.4 %, of which imports of goods volume by 1.6 %, but imports – by 5.8 %. Mainly, mineral products, electrical machinery and equipment, vehicles and associated transport equipment are imported. Main imports services: transport services and other economic activity services.

Income approach

(2024 compared to 2023, at current prices)

In 2024 the compensation of employees increased by 7.7 %, of which total wages and salaries rose by 7.6 %, but employers' social security contributions by 8.5 %.

Compensation of employees in producing sectors has risen by 4.0 %, most rapidly it rose in mining and quarrying (by 9.6 %); water supply, sewerage, waste management and remediation activities (by 8.4 %) and forestry and logging (by 6.6 %). Compensation of employees in construction rose by 3.0 %.

Compensation of employees in services sectors rose by 9.0 %. It has increased more rapidly in accommodation and catering sector (by 11.5 %), other services (by 10.7 %) and arts, entertainment and recreation (by 10.5 %).

Gross operating surplus and mixed income decreased by 6.8 %, the balance of taxes on production and imports and subsidies went up by 4.8 %.

Possible changes made by the government sector estimates, balance of payments and financial services sector, as well as updated services producer price indices will be taken into account in the GDP calculations and balancing of the quarterly national accounts on the 85th day after the reference quarter. The updated information will be available on the official statistics portal on March 26.

Time series of historical data and revision values of main GDP indicators are available for download in Excel files in the OSP GDP metadata section.

More information on the GDP is available in official statistics portal section Economy Gross domestic product – quarterly data.

Methodological information

Calculations of quarterly data of the GDP are made in line with the methodology of the European System of Accounts (ESA 2010). Main data sources used in calculations are:

• Surveys of quarterly and monthly enterprises and institutions;

• Labour Force Survey data carried out by the CSB;

• Data from the Ministry of Finance, the Treasury and the State Revenue Service;

• Latvijas Banka;

• Data from the Institute of Agricultural Resources and Economics.

The GDP statistics from production and expenditure approach is calculated at current prices (registration and calculations are made at the actual prices of the corresponding period) and constant prices. The indicators at constant prices are expressed at prices of the previous calendar year and prices of the reference year (chain-linked).

To calculate GDP at the prices of the previous calendar year the actual prices of the previous calendar year are used as a base and the ‘annual average’ method (where each running quarter (or year) is calculated at the average prices of the previous year) is used. To make the calculations, various deflators are used. Both volume indices and price indices may be used as deflators. The following price indices are used: consumer price index, producer price index, construction cost index, services producer price index, price indices of agricultural products, export unit value index, import price index. The following volume indices are used: change in number of employees and change in natural indicators (e.g., in removals, passenger number, etc.).

To calculate GDP at the prices of the reference (base) year (currently, prices of 2020) the indices calculated from the GDP indicators at the prices of the previous year are used to chain-link the calculated volume indices with 2020.

GDP from the income approach is calculated at current prices only.

The published data are adjusted in line with the Guidelines for CSB Revision Policy. The adjustments are made due to receipt of specified information as well as the latest administrative data, inclusion of new economically active enterprises and institutions in surveys, specification of economic activity of sector of enterprises.

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More information on quarterly data:
Gita Ķiņķevska
Quarterly National Accounts Section
E-mail: Gita.Kinkevska@csp.gov.lv
Phone: +371 67366791