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Statistic · Economy

Latvia’s 2025 budget deficit widens to 2.5% of GDP as local finances deteriorate

Latvia

Latvia’s general government deficit rose to €1.085 billion, or 2.5% of GDP, in 2025, from €744.8 million, or 1.8% of GDP, in 2024, according to updated figures from the Central Statistical Bureau.

Local governments moved from a €66.1 million surplus to a €174.1 million deficit. The central government deficit also increased, reaching €1.396 billion. A €484.8 million surplus in the social security fund partly offset the two deficits.

At the end of 2025, general government debt stood at €20.2 billion, or 46.2% of GDP, up from 45.7% a year earlier.

The Ministry of Finance reported a larger consolidated budget deficit of €1.8 billion on a cash-flow basis. The difference reflects the accounting adjustments used in the EU’s ESA 2010 methodology.