Retail sales in Latvia have seen a significant shift from growth to contraction as figures for January 2025 reveal a decrease of -0.60%, according to the latest data released on 28 February 2025. This decline comes after a promising 1.40% increase reported in December 2024, suggesting the holiday season may have temporarily bolstered consumer spending.
The month-over-month comparison highlights this sharp turnaround, as economic activity waned following the festive surge. December's robust retail performance now stands in stark contrast to the start of the new year, indicating potential post-holiday consumer caution or a temporary adjustment in purchasing behavior.
As retailers and economists delve into the factors contributing to this downturn, the outlook and strategies may need reevaluation amidst shifting economic conditions. Market stakeholders will closely monitor upcoming months to decipher whether this trend signifies a transient post-holiday slump or the onset of more persistent challenges in consumer spending in Latvia.
