Latvia Records 1.7% GDP Growth in Second Quarter of 2025

Latvia received encouraging economic news on August 29, as new data from the Central Statistical Bureau (CSB) showed GDP growth returning to positive territory.

Growth Figures

GDP at constant prices rose by 1.7% year-on-year in Q2 2025, while quarter-on-quarter growth reached 0.4%.

The largest contribution came from manufacturing, supported by construction, trade, and information and communication sectors.

In the first six months of 2025, GDP at constant prices was 0.7% higher than in the same period of 2024, reaching €19.7 billion.

At current prices, GDP stood at €10.5 billion in the second quarter.

Sector Performance

• Value added across the economy increased by 1.8% year-on-year.

• Producing sectors grew 2.4%, and services expanded 1.6%.

• Manufacturing, construction, trade, and ICT drove growth.

• Agriculture rose 1.5%, while forestry and logging fell sharply (-8.5%) and fisheries declined slightly (-0.1%).

• Mining and quarrying recorded the largest drop (-18.7%), driven by lower peat extraction and quarrying of stone and sand.

Household and Government Consumption

Household final consumption decreased slightly (-0.2%) compared with Q2 2024.

Spending on food (-2.1%) and housing and utilities (-1.2%) fell, while expenditure on restaurants and hotels rose (+3.5%) and transport costs increased (+3.7%).

Government final consumption expenditure, meanwhile, grew by 2.0%.

The Ministry of Finance welcomed the positive results, noting that growth is on track to match or exceed the June forecast of 1.1% GDP growth for 2025.