GDP rose by 2.5 % in Q1 2026

According to the Central Statistical Bureau, gross domestic product (GDP) in Latvia increased by 2.5 % in Q1 2026 (at constant prices, seasonally and calendar non-adjusted data). Quarter on quarter, GDP grew by 0.6 % (at constant prices, seasonally and calendar adjusted data). Among economic activities, the strongest upward contribution came from electricity, gas, steam and air conditioning supply. Revenue from taxes on products also supported GDP growth.

At current prices, GDP stood at 9.9 billion euro in Q1 2026.

Electricity, gas, steam and air conditioning supply, along with the wholesale and retail trade as well as real estate activities had a significant impact on the overall growth of the value added. However, a decline in transportation and storage as well as agriculture, forestry and fishing partially offset the increase.

In Q1 2026, GDP at current prices stood at 9 855.8 million euro

Production approach

(at constant prices, seasonally and calendar non-adjusted data)

Compared with Q1 2025, value added overall increased by 2.1 %. Value added in producing sectors increased by 4.1 %, and in services sectors it went up by 1.4 %.

The growth in crop and animal production, hunting and related service activities was estimated at 1.3 %, while fishing and aquaculture recorded a decline of 0.2 % and forestry and logging of 4.5 %.

The overall reduction in mining and quarrying (down by 27.7 %) was largely driven by drop in the quarrying of stone, sand and clay as well as extraction of peat.

Due to a growth in 13 out of 22 manufacturing sub-sectors, value added in manufacturing increased by 1.1 %. In terms of value added of the sub-sectors having the largest share in manufacturing, manufacture of wood and of products of wood recorded a decline of 2.5 %, while manufacture of food products an increase of 6.3 %. Upturn in manufacture of other non-metallic products (up by 1.4 %) and manufacture of fabricated metal products, except machinery and equipment (up by 19.4 %) had a positive influence on the sector, while manufacture of beverages had a counterbalancing effect (down by 32.8 %). 

Low temperatures in January and February contributed to higher value added of electricity, gas, steam and air conditioning supply (up by 41.6 %). Value added of water supply, sewerage, waste collection, treatment and disposal activities; materials recovery also went up (by 3.5 %).

Value added of the construction sector increased by 2.8 %. Civil engineering was the main contributor to the growth of the sector, with value added increasing by 4.3 % due to the expansion of infrastructure projects, such as roads, bridges and power supply. Value added of construction of buildings increased by 4.3 %, whereas value added of specialized construction activities dropped by 0.3 %.

Value added of the retail trade sector rose by 6.6 %. Wholesale and retail trade; repair of motor vehicles and motorcycles rose by 0.4 %, while wholesale trade, except of motor vehicles and motorcycles, saw an increase of 6.0 %.

The volume of services provided in accommodation and food service activities saw a decline of 1.8 %, of which accommodation fell 2.1 % and food service activities by 1.6 %.

Value added of the information and communication sector saw a decline of 2.4 %, with a rise of 1.8 % in computer programming, consultancy and related activities and a drop of 2.3 % in telecommunication, both of which are its largest sub-sectors. Information service activities recorded a reduction of 16.8 %.

Driven by a 16.4 % downturn in activities auxiliary to financial services and insurance activities, value added of financial and insurance activities reduced by 1.0 %. However, financial service activities saw a growth of 0.8 %, while insurance, reinsurance and pension funding of 5.5 %. Downturn in the auxiliary activities was driven by activities auxiliary to financial services, except insurance and pension funding, by activities of insurance agents and brokers, as well as by investment management companies.

The 7.1 % rise in value added of professional, scientific and technical activities was largely attributable to increased provision of architectural and engineering activities; technical testing and analysis (up by 9.9 %), other professional, scientific and technical activities (up by 8.7 %), advertising and market research (up by 7.7 %), as well as legal and accounting activities (up by 6.4 %).

Value added of administrative and support service activities rose by 6.9 % overall. A rise in employment activities (up by 11.0 %) and office administrative, office support and other business support activities (up by 33.7 %) contributed positively to the value added of the sector. While a 5.2 % drop in security and investigation activities contributed negatively.

The 5.7 % rise in taxes on products (mainly value added tax, excise and customs duties) was driven by higher revenue from value added tax. Of the overall GDP growth, 0.7 percentage points were attributable to taxes on products. At current prices, revenue from taxes on products increased by 9.1 %.

Expenditure approach 

(at constant prices, seasonally and calendar non-adjusted data)

Compared with Q1 2025, household final consumption increased by 0.2 %. Consumption of food products rose by 1.4 % and consumption of items in the group of housing, water, electricity, gas and other fuels went up by 3.0 %. Household expenditure on transport (public transport as well as acquisition, operation and maintenance of transport vehicles) grew by 6.2 %.

Government final consumption expenditure reduced by 1.5 %.

Investment in gross fixed capital formation went up by 3.2 % overall. Investment in dwellings and other buildings and structures rose by 3.3 %, and investment in machinery and equipment (including in transport vehicles) grew by 3.4 %. Investment in intellectual property products (research, computer software, databases, copyrights, etc.) went up by 1.3 %.

Exports of goods and services increased by 1.4 %, of which goods went up by 1.4 % and services by 1.7 %. In Q1 2026, the main commodities in export were wood and products of wood (except furniture), electrical machinery and equipment, as well as mineral products. The main services in export were transport services and other business services (this category includes, among others, services in the areas of research and development (R&D), professional and management consultancy, technical and trade-related services and other services to businesses).

Imports of goods and services rose by 3.0 %, with goods going up by 5.1 % and services down by 4.8 %. The main commodities in import were mineral products, electrical machinery and equipment, as well as vehicles other than railway or tramway rolling stock, and parts and accessories thereof. The main services in import were transport services and other business services.

Income approach

(at constant prices, seasonally and calendar non-adjusted data)

Compared with Q1 2025, compensation of employees increased by 5.5 %, of which wages and salaries went up by 5.7 % and employer’s social contributions grew by 4.8 %.

The largest growth in compensation of employees was recorded in financial and insurance activities (11.1 %), followed by construction (7.9 %), as well as professional, scientific and technical activities (7.4 %). Compensation of employees rose by an average of 5.9 % in production sectors and an average of 6.2 % in services sectors.

Gross operating surplus and mixed income increased by 4.0 %, while the balance between taxes on production and imports and subsidies went up by 12.0 %.

Possible revisions to government sector estimates, balance of payments and financial services sector data, together with updated business services indices, will be taken into account in GDP calculations and the balancing of quarterly national accounts on the 85th day after the reference quarter. The updated information will be released on the official statistics portal on 19 June.

Time series of historical data and revisions to the key GDP indicators are available for download in Excel format in the official statistics portal, GDP metadata section.

Further information about GDP is available in the official statistics portal Economy section, under Gross domestic product – quarterly data.

Methodological information

Quarterly calculations of the GDP are made in line with the methodology of the European System of Accounts (ESA 2010). The main data sources used are:

• quarterly and monthly surveys of enterprises and institutions;

• data from the Labour Force Survey conducted by the CSB;

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

• data from Latvijas Banka;

• data from the Institute of Agricultural Resources and Economics. 

The GDP statistics from production and expenditure approach are 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 the prices of the previous calendar year and at the 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 Central Statistical Bureau Revision Policy. Adjustments are carried out when new information or updated administrative data become available, when newly active enterprises and institutions are added to surveys, or when enterprises are reclassified under a different economic activity or sector.
 

Media requests:
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More information on the data:
Gita Ķiņķevska
National Accounts Data processing, Analysis and Dissemination Section
Email: Gita.Kinkevska@csp.gov.lv
Phone: +371 67366791