Latvia’s current account deficit narrowed notably in the first quarter of 2026, signaling an improvement in the country’s external position. The current account balance stood at -1.50% of GDP, compared with -3.00% of GDP in the fourth quarter of 2025.
The latest data, updated on 4 June 2026, indicate that Latvia is reducing the scale of its external financing needs at the start of the year. While the balance remains in deficit territory, the halving of the gap as a share of GDP between late 2025 and early 2026 points to a moderation in external pressures on the Latvian economy. Investors and policymakers are likely to monitor whether this trend continues in subsequent quarters, helping to stabilize the country’s macroeconomic outlook.
