Latvia’s GDP has fallen by 0.3% / day in the first quarter

Even according to seasonal and calendar adjusted data, Latvia’s GDP in the first quarter of 2025 has decreased by 0.3%compared to the corresponding period of 2024.

And in the first quarter of this year, compared to the previous quarter – the fourth quarter of 2024 – Latvian GDP at constant prices, according to seasonal and calendar adjusted data.

In the first quarter of 2025, Latvia’s GDP was EUR 9.122 billion at current prices.

The Statistical Bureau points out that the largest growth was in the construction industry, with a significant increase in engineering structures.

The Statistical Bureau also notes that not only construction, but also information and communication services, accommodation services, financial and insurance sector have given the most positive growth. On the other hand, the negative impact on GDP in the first quarter of this year was the drop in production in the electricity, gas supply, heat supply and air conditioning industry.

In the first quarter of 2025, the total added value decreased by 1.2%compared to the corresponding period last year. The added value in the manufacturing sectors has fallen by 4%, but remained in the service sectors at the previous year’s level.

In the agricultural sector, there was an increase of 1.3%, which was influenced by 2.5%in the crop industry and a decline in livestock farming by 2%. The fisheries industry had a decline of 18.8%, while the forestry and logging industry showed 3.4%.

Increasing in peat acquisition and processing by 1.9%, as well as gravel and sand careers in the development of 9.8%influenced the total increase in production in the mining industry by 3.1%.

The added value of manufacturing decreased by 0.9%, which was influenced by the fall of 14 of the 22 manufacturing sub -sectors. The recession was in the manufacture of finished metal products – 2.4%, in the manufacture of computers, electronic and optical equipment – by 21.3%, and in food production – by 0.1%

According to the share of the largest manufacturing sub -branch, the added value of wood and wood products increased by 3.6%. Positive total added value was influenced by growth in the production of non -metallic mineral products by 6.8% and in the production of chemicals and chemical products by 7.2%. The output of manufacturing increased by 1%.

Electricity, gas supply, heat supply and air conditioning production volumes decreased by 9.5%, but water supply, wastewater collection and treatment, waste collection, processing and placement, material recycling, sanitation increased by 0.3%.

The added value of construction increased by 9.6%in the first quarter of 2025. Building construction levels decreased by 3.8%during the year. The volume of engineering increased by 40.7%, which was determined by the start of the season with large and large -scale projects in road and bridge construction, which was also facilitated by relatively favorable weather conditions, which allowed the construction work to continue in the winter. Specialized works increased by 2.6%.

Retail added value decreased by 0.4%, including a 1.3%rise in retail trade of non -food goods, while food retail trade was 3.7%. Wholesale, retail and repair of cars and motorcycles increased by 15.7%, while wholesale decreased by 0.2%.

The amount of accommodation and catering services increased by 4.5%, including an increase in accommodation by 8.4%, but in the catering services there was a decrease of 2.8%.

The added value of the information and communication industry increased by 4.6%, including a 10.3%rise in computer programming and advice and 3.6%for telecommunications. In turn, the fall was 14.6%.

The added value of the financial and insurance sector increased by 3.4%. Insurance, reinsurance and pension accumulation industry increases by 5.3% by the increase in insurance premiums earned and a decrease in remuneration, which is due to the cost of risk insurance, as well as the increase in total contributions in private pension plans. The value added of financial services and insurance activities in the added value of the sector of financial services and insurance, provided by successful insurance agents and brokers, investment management companies, as well as surgery operations. The financial services sector had an increase of 0.2%.

The value added increase in the professional, scientific and technical service industry was 1.2%influenced by the increase in activity in the provision of architectural and engineering services, technical inspections and analysis services by 5.9%, in the provision of advertising and market research by 4.5%, as well as in other professional, scientific and technical services by 5.3%. In contrast, the negative impact on the development of the industry was a fall in legal and accounting services by 0.8% and in the activities of central offices, in the provision of advertising and market research services by 1%.

The Statistical Bureau points out that a stable increase over a longer period of time is shown to the activities of administrative and service services, and in the first quarter of this year, the amount provided by services increased by 2.8%. A positive contribution to the value added of the industry provided a 4.2%increase in leasing and operational leasing services, a rise in labor search and provision of 6.7%, as well as an increase in the services provided by construction and landscape architects by 7.1%. The decline was in the travel office, tour operator booking services – by 16.8%, as well as in security services and investigations – by 8.3%.

Product tax (mainly value added tax, excise and customs duties) increased by 2.8% was determined by the increase in value added tax revenue.

The Statistical Bureau also informs that in the first quarter of 2025, the final consumption of households decreased by 1%compared to the corresponding period of the previous year. Spending on food purchased in both retail and e-environment fell by 2.3%. Household expenses for housing, water, electricity, gas and other fuels decreased by 5.3%. In contrast, the use of restaurants and hotel services in households increased by 4.2%, while household expenses for transport, including public transport, purchase and operation of public transport, increased by 2.4%.

Government’s final consumption expenditure increased by 2.2%.

Investments in gross share capital increased by a total of 6.5%. Investments in housing, other buildings and buildings grew by 9%, but in machinery and equipment, including in vehicles – by 3.2%.

Investments in intellectual property products (research, computer software, databases, copyright) increased by 1.5%.

Exports of goods and services increased by 2%, including exports of goods by 0.2%and exports of services by 7.8%. The main export goods were wood and wood products (except furniture), electrical appliances and electrical equipment, as well as mineral products. In the first quarter of 2025, the main exported services were transport services and other economic activities, which include research and development services, professional and management services, technical, trade -related and other economic activities.

Imports of goods and services increased by 7.8%, including imports of imports by 6.9%, while imports of services were mainly imported mineral products, electrical appliances and electrical equipment, land vehicles and parts thereof. The most important import services were transport services and other business services.

In the first quarter of 2025, compared to the first quarter of 2024, the total salary of employees increased by 5.4%, including the total wage by 6%, while employers’ social contributions increased by 2.6%.

The highest increase in the salary of employees was in the group of art, entertainment and recreational, other services – by 11.1%in total, while real estate operations in the industry increased by 9.3%and the financial and insurance industry had an increase of 8%. Employee salaries in service sectors have increased on average by 7%.

Gross activity and mixed income have increased by 0.5%, but the sweet and subsidy of production and imports increased by 8.4%.