A Third of Latvia's Residents Became Poorer in Just One Year 0 27

At the same time, 22% of residents indicated that their financial situation improved over the past year, while 43% noted that they did not experience significant changes.

The survey revealed pronounced differences among respondents from different age groups. Residents aged 18 to 29 were the most positive about their financial situation: 32% reported improvements, while 21% reported a worsening situation. This is largely related to the income growth of people in this age group and their more active participation in the labor market.

In the older age group, the opposite situation is observed. Among residents aged 60 to 74, 34% indicated a deterioration in their financial situation, while 14% reported an improvement. In this group, the rising prices of consumer goods, especially food and housing-related services, as well as healthcare expenses, have the most significant impact on financial situations.

Meanwhile, middle-aged residents note stability in their financial situation - among people aged 40-49, nearly half indicated that their financial situation has not changed.

In Riga, the income situation of residents is relatively more favorable - 22% of Riga residents reported improvements, while 28% indicated a deterioration in their financial situation.

In other regions, stagnation or worsening situations are more prevalent. In Latgale, 14% of residents noted improvements, while about a third reported a deterioration in their financial situation. Similar trends are observed in Vidzeme, Kurzeme, and Zemgale.

In all regions, the main factor affecting people's financial situation is rising prices - 56% of respondents feel this impact.

As noted by the chief economist of the bank, Karlis Purgailis, although the incomes of certain population groups continue to grow, the overall sentiment indicates stagnation, caused by rising prices that significantly offset the effect of wage increases.

According to the bank's forecasts, inflation in 2026 may reach 3.2%, while economic growth will remain moderate at around 1.8%. Although the average salary in the country may increase by about 6.4% this year, the growth in purchasing power will vary among different population groups. At the same time, the unemployment rate will remain stable at around 6.5%.

The survey was conducted in collaboration with the research agency "Norstat Latvija" in February 2026, involving more than 1,000 residents of Latvia aged 18 to 74.