FX.co ★ Latvia Q4 GDP Growth Strongest Since 2023

Latvia’s economy grew by 2.9% year-on-year in the fourth quarter of 2025, picking up from an upwardly revised 2.6% in the previous quarter. This was the fastest pace of expansion since the first quarter of 2023, supported mainly by strong results in several key sectors: manufacturing (6.8%), construction (10.0%), trade (2.6%), information and communication (7.4%), commercial services (6.6%), human health and social work activities (4.4%), and arts, entertainment, and recreation (3.3%).

At the same time, some sectors contracted, including agriculture, forestry, and fishing (-8.6%), transportation and storage (-3.5%), financial and insurance activities (-1.6%), and education (-1.2%). On a seasonally adjusted quarter-on-quarter basis, GDP increased by 0.6% in Q4, slightly below the upwardly revised 0.8% growth recorded in Q3. Overall, Latvia’s economy expanded by 2.1% in 2025.