# Latvia Records 1.7% GDP Growth in Second Quarter of 2025

Source: https://www.savoryandpartners.com/news/latvia-gdp-growth-q2-2025 · Published: 2025-09-03 · Updated: 2025-09-03

Latvia’s GDP grew 1.7% in Q2 2025, driven by manufacturing, construction, and services. See how the economy rebounded despite declines in energy and forestry.

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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.