FX.co ★ Latvia Economic Growth Accelerates in Q3

In the third quarter of 2025, Latvia's economy experienced a year-on-year growth of 2.5%, improving from a revised 0.9% in the second quarter. This marks the fifth consecutive quarter of expansion and is the fastest growth since the first quarter of 2023. Significant increases were recorded in household consumption, which rose by 1.8% compared to 0.1% in the previous quarter, government spending, which grew by 5.8% up from 3.2%, and gross fixed capital expenditure, which increased by 10.8% from 9.0%. Despite these gains, net trade had a negative impact on GDP, as export growth at 3.0% lagged behind the 5.8% increase in imports. From the production perspective, notable contributions came from manufacturing, which grew by 7.3% compared to 3.6%, construction at 9.0% from 5.8%, trade at 3.1% from 2.7%, and real estate activities at 3.0% compared to 2.1%. On a seasonally adjusted quarterly basis, GDP rose by 0.6% in the third quarter, an improvement over the previously revised 0.3% increase.