Latvia’s economy grew by 3.0% year-on-year in the second quarter of 2026, up from 2.5% in the previous quarter. This was the fastest pace of expansion since the first quarter of 2022, supported primarily by stronger results in several key sectors: manufacturing (5.5% vs 1.1% in Q1), construction (3.2% vs 2.8%), trade (6.4% vs 5.5%), and human health and social work activities (4.7% vs 2.1%).
At the same time, contractions eased in public administration and defence (-0.6% vs -0.9%) and in agriculture, forestry, and fishing (-3.0% vs -3.6%). Activity also rebounded in education (0.2% vs -0.6%), information and communication (8.3% vs -2.4%), and financial and insurance activities (10.4% vs -1.0%).
By contrast, growth slowed in real estate (2.8% vs 3.7%) and in other industries (4.3% vs 21.6%), while the downturn in accommodation and food services deepened (-2.3% vs -1.8%). On a seasonally adjusted quarter-on-quarter basis, GDP rose by 0.7% in Q2, following a 0.6% increase in the first quarter.
