Latvia Current Account Swings to Deficit

Latvia recorded a current account deficit of EUR 62 million in December 2025, shifting from a surplus of EUR 146 million in the same month of the previous year. The goods account shortfall expanded to EUR 388 million from EUR 331 million a year earlier, while the services account surplus narrowed to EUR 183 million from EUR 247 million. At the same time, the secondary income surplus decreased significantly to EUR 15 million from EUR 188 million. On the other hand, the primary income account surplus widened sharply to EUR 128 million, compared with EUR 43 million a year earlier.

Latvia recorded a current account deficit of €86 million in November 2025, compared with a €46 million trade surplus in the same month a year earlier, marking the largest shortfall in four months. The deterioration was largely driven by the goods account deficit, which widened to €381 million from €159 million, while the services account surplus fell to €164 million from €241 million. On the income side, the primary income account rebounded to a €36 million surplus, reversing a €95 million deficit a year ago. The secondary income account also saw its surplus expand, rising to €95 million from €59 million.

Latvia recorded a current account deficit of EUR 23 million in October 2025, narrowing from EUR 77 million in the corresponding month of the previous year. This marked the smallest deficit since February last year, driven by primary income, which posted a surplus of EUR 97 million, shifting from a shortfall of EUR 49 million a year ago. Additionally, the surplus in the secondary income account widened to EUR 55 million from EUR 27 million. On the other hand, the goods account gap expanded to EUR 326 million from EUR 253 million, while the services account surplus declined to EUR 152 million from EUR 198 million.