Latvia's economy shrank by 9.8 percent from a year earlier in the second quarter of 2020, the steepest pace of contraction since the first quarter of 2010, a preliminary estimate showed. The latest fall in the GDP also meant that the country entered a technical recession, as the government was forced to impose restriction measures to curb the coronavirus pandemic. Output dropped in producing sectors (-3.8 percent) and in services sectors (-11.0 percent), of which in retail trade (-1.6 percent). Also, the volume of taxes on products collected reduced. On a quarterly basis, the economy shrank 7.5 percent, the most on record.
GDP Annual Growth Rate in Latvia averaged 3.87 percent from 1996 until 2020, reaching an all time high of 15.10 percent in the first quarter of 2007 and a record low of -15.60 percent in the third quarter of 2009. This page provides - Latvia GDP Annual Growth Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Latvia GDP Annual Growth Rate - data, historical chart, forecasts and calendar of releases - was last updated on August of 2020.
GDP Annual Growth Rate in Latvia is expected to be -7.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Latvia to stand at 13.20 in 12 months time. In the long-term, the Latvia GDP Annual Growth Rate is projected to trend around 5.00 percent in 2021 and 3.00 percent in 2022, according to our econometric models.