In the 2nd quarter, GDP has increased by 3.0 %

Data compiled by the Central Statistical Bureau (CSB) shows that in the 2nd quarter of 2026, gross domestic product (GDP) at constant prices rose by 3.0 % (according to seasonally and calendar non-adjusted data). Compared to the previous quarter, GDP has increased by 0.7 % (according to seasonally and calendar adjusted data at constant prices). Wholesale and retail trade, repair of motor vehicles and motorcycles contributed the most to the GDP growth.

In the first 6 months, compared to the respective period of the previous year, GDP at constant prices (seasonally and calendar non-adjusted) increased by 2.8 %. GDP at current prices comprised EUR 21.3 billion.

In the 2nd quarter of this year, GDP at current prices amounted to EUR 11.5 billion.

In the 2nd quarter, the largest contribution to growth in value added came not only from wholesale and retail trade sector, repair of motor vehicles and motorcycles, but also from manufacturing and information and communication services sector. A decrease was observed in transportation and storage sector, as well as agriculture, forestry and fishing sector.

In the 2nd quarter of 2026 GDP at current prices comprised EUR 11 491.2 million
 

Production approach

(at constant prices, seasonally and calendar non-adjusted data)

In the 2nd quarter of 2026, compared to the corresponding period of the previous year, total value added increased by 3.4 %. In the producing sectors, growth reached 3.3 %, while in the services sectors, value added increased by 3.5 %.

Agriculture recorded a 2.1 % increase in value added, while  value added in forestry and logging has gone down by 7.1 %.

Value added in quarrying of stone, sand, clay and peat increased by 4.5 %.

Value added in manufacturing rose by 5.5 %, which was affected by the increase in 16 out of 22 manufacturing sub-sectors. Among the largest manufacturing sectors, value added increased by 2.2 % in the manufacture of wood and of products of wood, while in the manufacture of food products it rose by 5.7 %. The overall performance of the sector was also positively influenced by growth in the manufacture of other non-metallic mineral products (of 3.7 %), manufacture of other fabricated metal products n.e.c. (18.6 %). At the same time, a decline of 25.3 % was recorded in the manufacture of beverages.

In electricity, gas, steam and air conditioning supply value added of sectors increased by 2.9 %. A rise of 3.0 % was observed in water supply; sewerage, waste management, as well as remediation activities.

The value added of construction increased by 3.2 % in the 2nd quarter of 2026. Development was promoted by a 11.8 % rise in construction of buildings. At the same time, a decline of 2.8 % was recorded in civil engineering, and of 0.3 % in specialised construction activities.

Value added of retail trade has gone up by 5.8 %. Wholesale and retail trade and repair of motor vehicles and motorcycles witnessed a rise of 5.3 %, while wholesale showed an increase of 7.4 %.

The volume of services provided in accommodation and catering services shrank by 2.3 %. Of which a drop of 1.5 %was registered in accommodation, but of 2.7 % in catering services.

Value added in information and communication trade sector has gone up by 8.3 %. In the largest sub-sector, computer programming and consultancy sector, it has risen by 16.6 %, while in information service activities the growth comprised 5.0 %. At the same time, a decline of 2.9 % was recorded in the provision of telecommunication services.

The value added in financial and insurance activities rose by 10.4 %. The rise was driven by the insurance, reinsurance and pension funding, where a 40.0 % increase was registered. In turn, financial service activities and activities auxiliary to financial services and insurance activities experienced a drop of 0.5 % and 4.3 %, respectively. The rapid growth in insurance, reinsurance and pension funding was promoted by increase in gross premiums written in non-life insurance.

Value added in professional, scientific and technical activities rose by 5.2 %. It was promoted by upturn in provision of architectural and engineering activities; technical testing and analysis (by 10.8 %), provision of other professional, scientific and technical activities (12.2 %), as well as development of legal and accounting activities (3.4 %). At the same time, a drop of 3.1 % was registered in advertising and market research.

Value added of administrative and support activities increased by 3.6 %. A positive contribution to the increase came from labour recruitment and provision of personnel, where the rise reached 2.2 %, as well as from office administrative, office support and other business support activities, where an upturn of 24.1 % was registered. In turn, the growth was hindered by a drop of 7.5 % in security and investigation activities, as well as of 3.8 % in building maintenance and landscape architectural services.

Rise of 0.1 % on taxes on products (mainly value added tax, excise and customs duties) was determined by growth in income from value added tax. Taxes on products collected (at current prices) increased by 2.8 %.

Expenditure approach

(at constant prices, seasonally and calendar non-adjusted data)

In the 2nd quarter of 2026, compared to the corresponding period of the previous year, household final consumption rose by 3.7 %. Consumption of food products increased by 3.6 %. The volume of goods and services used by households in the housing, water, electricity, gas and other fuels expenditure group increased by 1.0 %. In turn, expenditure on transport, of which on public transport, purchase and exploitation of transport vehicles, went up by 2.0 %.

Government final consumption expenditure decreased by 2.4 %.

Investment in gross fixed capital formation in total rose by 6.5 %. Investment in dwellings and other buildings and structures increased by 3.2 %, in machinery and equipment (of which in transport vehicles) by 9.8 %. In turn, investment in intellectual property products, e.g. research, computer software, databases, copyrights, went up by 6.6 %.

Exports of goods and services rose by 7.7 %, of which exports of goods increased by 11.6 %, but exports of services reduced by 0.9 %. The main commodities in exports were wood and products of wood (except furniture), electrical machinery and equipment, as well as mineral products. The most significant categories of exported services were transport services and other economic activity, including R&D, professional and management consulting, as well as technical, trade-related and other business services.

The volume of imports of goods and services grew by 7.1 %. Imports of goods increased by 9.6 %, while imports of services reduced by 1.7 %. The largest share of imports was accounted for by mineral products, electrical machinery and equipment, as well as vehicles and associated transport equipment. Main services groups imported were transport services and other economic activity services.

Income approach

(at current prices, seasonally and calendar non-adjusted data)

Compared to the 2nd quarter of 2025, in the 2nd quarter of 2026 compensation of employees increased by 6.4 %, of which wages and salaries rose by 6.3 %, but employers' social security contributions by 7.2 %.

The largest increase in total compensation of employees was recorded in arts, entertainment, recreation and other service activities group, where it reached 10.3 %. Compensation of employees in professional, scientific and technical activities rose by 10.0 %, but in construction by 9.6 %. In general, compensation of employees in producing sectors on average has grown by 6.3 %, while in services sectors the rise has reached 7.7 %.

Gross operating surplus and mixed income increased by 9.4 %, whereas the balance of taxes on production and imports and subsidies went up by 6.1 %.

A revision of the GDP data is expected, including an update of the 2024 GDP estimate based on annual data sources. At the same time, changes related to the Gross National Income (GNI) reservations imposed on the country will be incorporated into the GDP time series (starting with data for 2018). These reservations were identified as part of Statistical Office of the European Union (Eurostat) 2020-2024 GNI verification cycle. The revision will also include other changes resulting from updates to GDP estimation methods and data sources.

The updated information will be available on official statistics portal on September 30.

Time series of historical data and revision values of main GDP indicators are available for download in Excel files in the OSP GDP metadata section.

More information on the GDP is available in official statistics portal section Economy Gross domestic product – quarterly data.

Methodological information

Calculations of quarterly data of the GDP are made in line with the methodology of the European System of Accounts (ESA 2010). Main data sources used in calculations are:

• Surveys of quarterly and monthly enterprises and institutions;

• Labour Force Survey data carried out by the CSB;

• Data from the Ministry of Finance, the Treasury and the State Revenue Service; 

• Latvijas Banka;

• Data from the Institute of Agricultural Resources and Economics. 

The GDP statistics from production and expenditure approach is 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 prices of the previous calendar year and 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 CSB Revision Policy. The adjustments are made due to receipt of specified information as well as the latest administrative data, inclusion of new economically active enterprises and institutions in surveys, specification of economic activity of sector of enterprises.

Media requests:
Public Relations Section
E-mail: media@csp.gov.lv
Phone: +371 27880666

More information on the data:
Gita Ķiņķevska
National Accounts Data processing, Analysis and Dissemination Section
E-mail: Gita.Kinkevska@csp.gov.lv
Phone: +371 67366791