In a surprising turn of events for the Latvian economy, retail sales experienced a noticeable decline in May 2025, as the latest data shows. According to figures updated on 27 June 2025, the current retail sales indicator in Latvia has dropped by 0.70%, marking a significant downturn from April's robust growth of 0.50%.
This month-over-month comparison indicates a stark reversal of fortunes, suggesting a potential cooling off in consumer spending or other underlying economic challenges. The leap from a positive growth of 0.50% in April to a negative 0.70% in May raises questions about the stability and consumer confidence within the Latvian market.
Economists and market analysts will likely keep a close watch on coming months' data to determine if this is a temporary setback or a sign of a longer-term trend. As retailers adjust strategies and policymakers evaluate the causes, the Latvian economy may need to navigate carefully to regain its footing in the coming months.
