RISP2503
GDP up by 1.7 % in Q2 2025
According to the Central Statistical Bureau, gross domestic product (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.
Production approach
(at constant prices, seasonally and calendar non-adjusted data)
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 %).
Due to a growth in 13 out of 22 manufacturing sub-sectors, value added in manufacturing increased by 4.3 %. Recession was recorded in manufacture of fabricated metal products (down by 2.1 %), as well as manufacture of computer, electronic and optical products (down by 1.5 %). In the manufacture of food products, value added went up by 8.0 %, while in the sub-sector having the largest share in manufacturing – manufacture of wood and of products of wood – it rose by 3.5 %. Upturn in the manufacture of other non-metallic products (of 15.8 %) had a positive effect on the value added of the sector overall. Manufacture of chemicals and chemical products saw a decline of 10.8 %. Output in manufacturing increased by 4.1 %.
In electricity, gas, steam and air conditioning supply, output rose by 0.1 %, but in water supply, sewerage, waste collection, treatment and disposal activities; materials recovery it fell by 5.6 %.
Value added of the construction sector increased by 4.5 % in Q2 2025. Construction of buildings fell by 2.8 % year-on-year, civil engineering rose by 27.7 %, and specialized construction activities dropped by 0.1 %.
Value added of the retail trade sector reduced by 0.4 %, with retail sale of non-food products growing by 1.1 %, but retail sale of food products declining by 2.1 %. Wholesale and retail trade and repair of motor vehicles and motorcycles increased by 24.0 %, while wholesale saw an increase of 0.3 %.
Output of accommodation and food service activities went up by 3.4 %, of which in accommodation by 5.8 % and in food service activities by 2.2 %.
Value added of the information and communication sector saw a growth of 3.7 %, with a rise of 6.8 % in computer programming, consultancy and related activities and of 8.6 % in telecommunication, both of which are the largest sub-sectors of information and communication. Decline, however, was recorded in information service activities (down by 13.5 %).
Driven by upturn in all sub-sectors, value added of the financial and insurance activities increased by 4.6 %. Financial service activities saw a growth of 1.6 %. Higher earned premiums in non-life insurance were the key factor behind the rise in insurance, reinsurance and pension funding (14.9 %). Underpinned by the successful performance of several enterprise groups, value added of the activities auxiliary to financial services and insurance activities grew by 9.9 %.
The 0.2 % rise in value added of the professional, scientific and technical activities was largely attributable to increased provision of architectural and engineering activities; technical testing and analysis (up by 13.0 %) as well as provision of advertising and market research (up by 3.3 %). However, a decline of 9.3 % in other professional, scientific and technical activities and of 6.5 % in activities of head offices, advertising and market research had counterbalancing effect on the sector.
Value added of the administrative and support service activities fell by 1.2 % overall. A rise in employment activities (up by 5.6 %) and services of building and landscape activities (up by 3.1 %) contributed positively to the sector’s value added. While a drop in security and investigation activities (down by 1.1 %), rental and leasing activities (down by 3.0 %), as well as office administrative, office support and other business support activities (down by 2.1 %) contributed negatively.
The 1.8 % rise in taxes on products (mainly value added tax, excise and customs duties) was driven by higher revenue from value added tax.
Expenditure approach
(at constant prices, seasonally and calendar non-adjusted data)
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 %.
Investment in gross fixed capital formation went up by 8.6 % overall. Investment in dwellings and other buildings and structures rose by 7.1 %, and investment in machinery and equipment (including in transport vehicles) grew by 13.9 %. Investment in intellectual property products (research, computer software, databases, copyrights, etc.) went up by 0.2 %.
Exports of goods and services increased by 2.3 %, of which goods went up by 1.7 % and services by 3.5 %. In Q2 2025, the main commodities in export were wood and products of wood (except furniture), electrical machinery and equipment, as well as mineral products. The main services in export were transport services and other business services (this diverse category includes, among others, services in the areas of research and development (R&D), professional and management consultancy, technical and trade-related services and other services to businesses).
Imports of goods and services rose by 7.1 %, with goods up by 6.0 % and services up by 11.4 %. The main commodities in import were mineral products, electrical machinery and equipment, as well as vehicles other than railway or tramway rolling stock, and parts and accessories thereof. The main services in import were transport services and other business services.
Income approach
(at constant prices, seasonally and calendar non-adjusted data)
In Q2 2025, compensation of employees increased by 6.3 % year-on-year, of which wages and salaries went up by 6.1 % and employer’s social contributions grew by 7.3 %.
The largest growth in compensation of employees was recorded in arts, entertainment and recreation; and other service activities (8.8 % in total), followed by construction (8.5 %), as well as professional, scientific and technical activities; and administrative and support service activities (8.1 %). Compensation of employees rose by an average of 5.3 % in production sectors and an average of 6.9 % in services sectors.
Gross operating surplus and mixed income increased by 1.8 %, while the balance between taxes on production and imports and subsidies went up by 5.9 %.
A revision of GDP data is planned. This will involve revising the GDP estimates for 2023 produced based on annual data sources and integrating them into the quarterly GDP time series. The updated information will be released on the official statistics portal on 30 September.
Time series of historical data and revisions to the key GDP indicators are available for download in Excel format in the official statistics portal GDP metadata section.
Further information about GDP is available in the official statistics portal Economy section, under Gross domestic product – quarterly data.
Methodological information
Quarterly calculations of the GDP are made in line with the methodology of the European System of Accounts (ESA 2010). The main data sources used are:
quarterly and monthly surveys of enterprises and institutions;
data from the Labour Force Survey conducted by the CSB;
data from the Ministry of Finance, the Treasury, and State Revenue Service;
data from Latvijas Banka;
data from the Institute of Agricultural Resources and Economics.
The GDP statistics from production and expenditure approach are calculated at current prices (registration and calculations are made at the actual prices of the corresponding period) and constant prices. The indicators at constant prices are expressed at the prices of the previous calendar year and at the prices of the reference year (chain-linked), thus excluding the effect of changes in prices during the certain period.
To calculate GDP at the prices of the previous calendar year, the actual prices of the previous calendar year are used as a base and the annual average method (where each running quarter (or year) is calculated at the average prices of the previous year) is used. To make the calculations, various deflators are used. Both volume indices and price indices may be used as deflators. The following price indices are used: consumer price index, producer price index, construction cost index, services producer price index, price indices of agricultural products, export unit value index, import price index. The following volume indices are used: change in number of employees and change in natural indicators (e.g., in removals, passenger number, etc.).
To calculate GDP at the prices of the reference (base) year (currently, prices of 2020), the indices calculated from the GDP indicators at the prices of the previous year are used to chain-link the calculated volume indices with 2020.
GDP from the income approach is calculated at current prices only.
The published data are adjusted in line with the Guidelines for Central Statistical Bureau Revision Policy. Adjustments are carried out when new information or updated administrative data become available, when newly active enterprises and institutions are added to surveys, or when enterprises are reclassified under a different economic activity or sector.
Media requests:
Public Relations Section
Email: media@csp.gov.lv
Phone: +371 27880666
More information on the data:
Gita Ķiņķevska
Quarterly National Accounts Section
Email: Gita.Kinkevska@csp.gov.lv
Phone: +371 67366791
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