In a significant shift from the previous month, Latvia's retail sales experienced a notable decline in May, falling to -2.00% year-over-year. This marks a stark contrast from April's positive growth of 0.60%, highlighting a challenging period for the retail sector in the country. The latest data, updated on 27 June 2025, reveals a concerning trend as the economic environment adapts to new market conditions.
The reported figures signal a year-over-year decrease, where the actual changes in May 2025 are compared to May 2024, presenting a clear indication of declining consumer demand or spending power. This downturn comes on the heels of a modest increase in April, when the retail sales growth was reported at 0.60% from April 2024, suggesting a sudden shift in the economic landscape.
Various factors could be contributing to this downturn, from inflationary pressures affecting consumer spending to broader economic challenges within the region. As Latvia navigates these headwinds, businesses and policymakers alike will need to closely monitor these developments to understand the underlying causes and to formulate strategies to mitigate further declines in the retail sector.
