Gross Domestic Product (GDP) in Latvia

Gross Domestic Product (GDP) measures the total value of all final goods and services produced within a country in a given year. It is a broad indicator of the size of an economy and its overall level of economic activity. It captures the outcome of economic activity by households, businesses and the government.
This indicator is expressed in millions of constant 2021 international dollars. Constant means that the values are adjusted for inflation, allowing meaningful comparisons over time by reflecting changes in real production rather than price changes. International dollars mean that the values are expressed using Purchasing Power Parity (PPP) based on the purchasing power of the U.S. dollar. PPP adjusts for differences in price levels across countries, so that one international dollar has the same purchasing power in any given country as one U.S. dollar has in the United States. Overall, constant international dollars make GDP figures more comparable internationally, as they reflect differences in the volume of goods and services produced rather than differences in local prices or exchange rates.