Latvia: Economic growth accelerates in the fourth quarter of 2025
GDP reading: Latvia’s GDP increased 2.9% in annual terms in Q4, following a 2.6% expansion in the previous quarter. Q4’s reading was the strongest since Q1 2023. In seasonally adjusted quarter-on-quarter terms, economic output increased 0.6% in Q4, following a 0.8% expansion in the previous quarter.
In 2025 as a whole, GDP grew 2.1% after flatlining in 2024, marking the best reading since 2021.
Drivers: Compared with the prior quarter’s data, figures in Q4 improved for private consumption (+2.2% in annual terms vs +1.7% in Q3), fixed investment (+11.8% vs +10.4% in Q3) and imports of goods and services (+6.1% vs +5.8% in Q3). In contrast, readings worsened for government consumption (+3.4% vs +6.0% in Q3) and exports of goods and services (-1.9% vs +3.2% in Q3).