RISP2502
In the 1st quarter, the main drivers of GDP were trade, construction, and information and communication services
Data compiled by the Central Statistical Bureau (CSB) shows that in the 1st quarter of 2025, gross domestic product (GDP) at constant prices reduced by 0.3 % (according to seasonally and calendar non-adjusted data). Compared to the previous quarter, GDP has not changed significantly (according to seasonally and calendar adjusted data at constant prices). The largest rise in positive GDP growth rate was registered in construction, as volume of civil engineering structures increased significantly.
In the 1st quarter of this year GDP at current prices was EUR 9.1 billion.
In short, looking at the GDP indicator in the 1st quarter, the most positive increase in value added was provided not only from construction but also from the information and communication services sector, accommodation, and financial and insurance activities. A decline in production of electricity, gas, steam and air conditioning had an adverse effect on the GDP in the 1st quarter.
Production approach
(at constant prices, seasonally and calendar non-adjusted data)
In the 1st quarter of 2025, compared to the corresponding period of the previous year, total value added decreased by 1.2 %. Value added in producing sectors in total reduced by 4.0 %, but in services sectors remained at the level of the previous year.
A rise in agriculture sector was estimated at 1.3 %, which was affected by increase in crop production (of 2.5 %) and drop in livestock production (of 2.0 %). Decrease was observed in fishery (of 18.8 %), but rise of 3.4 % was registered in forestry and logging sector.
A rise in manufacture of peat extraction and processing of 1.9 % and in quarrying of gravel and sand of 9.8 % affected the overall manufacturing volume increase in mining by 3.1 %.
Value added in manufacturing witnessed a drop of 0.9 %, which was affected by the reduction in 14 out of 22 manufacturing sub-sectors. Recession was observed in manufacture of fabricated metal products – a drop of 2.4 %, manufacture of computer, electronic and optical products – decrease of 21.3 %, but in manufacture of food products – of 0.1 %. In the sub-sector having the largest share in manufacturing – manufacture of wood and of products of wood – value – added rose by 3.6 %. Growth in manufacture of other non-metallic products (of 6.8 %), manufacture of chemicals and chemical products (7.2 %) had a positive effect on the total value added of the sector. Output in manufacturing increased by 1.0 %.
In electricity, gas, steam and air conditioning supply manufacturing volumes fell by 9.5 %, but in water supply, sewerage, waste collection, treatment and disposal activities; materials recovery rose by 0.3 %.
The value added of construction increased by 9.6 % in the 1st quarter of 2025. Over the year, construction of buildings fell by 3.8 %. Volume of civil engineering increased by 40.7 %, which was determined by the beginning of the season with large and voluminous projects in road and bridge construction; it was also promoted by relatively favourable weather, which made it possible to continue construction throughout the winter. The volume of specialized construction activities rose by 2.6 %.
The value added of retail trade reduced by 0.4 % – retail sale of non-food products increased by 1.3 %, but retail sale of food products fell by 3.7 %. Wholesale trade, retail trade and repair of motor vehicles and motorcycles increased by 15.7 %, but wholesale trade reduced by 0.2 %.
The volume of services provided in accommodation and catering services increased by 4.5 %, of which accommodation experienced a rise of 8.4 %, but catering services a drop of 2.8 %.
The value added of information and communication sector experienced a rise of 4.6 %, of which in the largest sub-sectors: computer programming and consultancy sector – increased by 10.3 % and provision of telecommunication services by 3.6 %. In turn, a drop of 14.6 % is observed in information services.
The value added of financial and insurance activities increased by 3.4 %. A rise of 5.3 % in insurance, reinsurance and pension funding was determined by increase of earned premiums and reduction in total claims due in non-life insurance, as well as upturn in total contributions in private pension plans. The value added of activities auxiliary to financial services and insurance activities rose by 20.7 %, which was affected by the successful activity of insurance agents and brokers and investment management companies, as well as security and commodity contracts brokerage. There was a rise of 0.2 % in financial service activities.
A rise in value added of professional, scientific and technical activities (of 1.2 %) was affected by upturn in provision of architectural and engineering activities; technical testing and analysis (5.9 %), provision of advertising and market research (4.5 %), as well as provision of other professional, scientific and technical activities (5.3 %). In turn, negative impact on the development of the sector was left by drop in provision of legal and accounting activities (of 0.8 %) and activities of head offices, provision of advertising and market research (1.0 %).
Over a longer period of time administrative and support service activities show a steady growth, and also this quarter the volume of services provided has risen by 2.8 %. A positive contribution in the upturn of value added of the sector was provided by the rise in volume of rental and leasing services (of 4.2 %), labour recruitment and provision of personnel (6.7 %), construction and landscape architectural services (7.1 %). A drop in travel agency, tour operator reservation services (of 16.8 %), security and investigation activities (8.3 %).
Rise of 2.8 % on taxes on products (mainly value added tax, excise and customs taxes) was determined by growth in income from value added tax.
Expenditure approach
(at constant prices, seasonally and calendar non-adjusted data)
In the 1st quarter of 2025, compared to the corresponding period of the previous year, household final consumption decreased by 1.0 %. Expenditure on food products purchased both in retail sale and in e-environment decreased by 2.3 %. Household's expenditure on housing, water, electricity, gas and other fuels fell by 5.3 %. In turn, volume of expenditure on restaurants and hotels in households has increased by 4.2 %. Expenditure of households on transport (public transport, purchase and exploitation of transport vehicle) increased by 2.4%.
Government final consumption expenditure grew by 2.2 %.
Investment in gross fixed capital formation in total rose by 6.5 %. Investment in dwellings and other buildings and structures increased by 9.0 %, in machinery and equipment (of which in transport vehicles) by 3.2 %.
Investment in intellectual property products (research, computer software, databases, copyrights, etc.) – went up by 1.5 %.
Exports of goods and services increased by 2.0 %, of which exports of goods by 0.2 %, but exports of services – by 7.8 %. The main commodities in exports were wood and products of wood (except furniture), electrical machinery and equipment, as well as mineral products. In the 1st quarter of 2025, 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 rose by 7.8 %, of which imports of goods – by 6.9 %, but imports of services – by 11.8 %. Mainly, mineral products, electrical machinery and equipment, machinery and mechanical appliances, vehicles and associated transport equipment are being imported. Main imports services: transport services and other economic activity services.
Income approach
(at current prices, seasonally and calendar non-adjusted data)
Compared to the 1st quarter of 2024, in the 1st quarter of 2025 compensation of employees increased by 5.4 %, of which total wages and salaries by 6.0 % and employers' social security contributions by 2.6 %.
The largest growth in total compensation of employees was in the group of arts, entertainment and recreation, other service activities (a total of 11.1 %); real estate activities (9.3 %) and financial and insurance work by rise of (8.0 %). Compensation of employees in services sectors has risen on average by 7.0 %.
Gross operating surplus and mixed income increased by 0.5 %, and taxes on production and imports less subsidies rose by 8.4 %.
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 official statistics portal on June 20.
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.
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), thus excluding the effect of changes in prices during the certain period.
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.
Media requests:
Public Relations Section
E-mail: media@csp.gov.lv
Phone: +371 27880666
stat.gov.lv; csp.gov.lv
More information on the data:
Gita Ķiņķevska
Quarterly National Accounts Section
E-mail: Gita.Kinkevska@csp.gov.lv
Phone: +371 67366791
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