Latvian GDP bounced back in second quarter / Article

According to the Central Statistical Bureau, GDP at constant prices increased by 1.7 % in Q2 2025 (seasonally and calendar non-adjusted data). Quarter-on-quarter, GDP at constant prices grew by 0.4 % (seasonally and calendar adjusted data). The largest positive contribution came from manufacturing.

In the first six months of the year, GDP at constant prices was 0.7 % higher than in the same period a year before (seasonally and calendar adjusted data) and reached 19.7 billion euro.

At current prices, GDP stood at 10.5 billion euro in Q2 2025.

“Manufacturing, along with construction, trade, as well as information and communication, had a significant impact on the overall value added growth in Q2 2025. A decline in electricity, gas, steam and air conditioning supply as well as transportation and storage partially offset the increase,” said the CSB.

In Q2 2025, value added overall increased by 1.8 % year-on-year. Value added in producing sectors increased by 2.4 %, while in services sectors it went up by 1.6 %.

Growth in the agricultural sector was estimated at 1.5 %. Fishery saw a decline of 0.1 %, while forestry and logging – of 8.5 %.

The overall reduction in mining and quarrying (down by 18.7 %) was largely driven by drop in the extraction of peat (15.6 %) as well as quarrying of stone and sand (28.0 %).

In Q2 2025, household final consumption reduced by 0.2 % year-on-year. Expenditure on food products fell by 2.1 %, and expenditure on housing, water, electricity, gas and other fuels dropped by 1.2 %. Household expenditure on restaurants and hotels increased by 3.5 %. Transport costs (public transport, as well as acquisition, operation and maintenance of transport vehicles) rose by 3.7 %.

Government final consumption expenditure grew by 2.0 %.

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