The economy of Latvia expanded by 2.9% year-on-year in the fourth quarter of 2025, accelerating from an upwardly revised 2.6% growth in the previous quarter. This marked the strongest economic expansion since Q1 2023, driven primarily by robust performances in manufacturing (6.8%), construction (10.0%), trade (2.6%), information and communication (7.4%), commercial services (6.6%), human health and social work activities (4.4%), and arts, entertainment, and recreation (3.3%). In contrast, agriculture, forestry, and fishing (-8.6%), transportation and storage (-3.5%), financial and insurance activities (-1.6%), and education (-1.2%) experienced declines. On a seasonally adjusted quarterly basis, GDP rose 0.6% in Q4, slightly easing from an upwardly revised 0.8% gain in the previous quarter. For the full year 2025, Latvia’s economy expanded by 2.1%.