Latvia’s economy expanded by 3.0% year-on-year in the second quarter of 2026, following a 2.5% increase in the previous quarter. This marked the strongest economic growth since the first quarter of 2022, driven largely by stronger performances in manufacturing (5.5% vs 1.1% in Q1), construction (3.2% vs 2.8%), trade (6.4% vs 5.5%), and human health and social work activities (4.7% vs 2.1%). Moreover, declines softened in public administration and defence (-0.6% vs -0.9%) and agriculture, forestry, and fishing (-3.0% vs -3.6%), while activity rebounded in education (0.2% vs -0.6%), information and communication (8.3% vs -2.4%), and finance and insurance activities (10.4% vs -1.0%). In contrast, growth moderated in real estate (2.8% vs 3.7%) and other industries (4.3% vs 21.6%), while accommodation and food services (-2.3% vs -1.8%) contracted at a faster pace. On a seasonally adjusted quarterly basis, GDP edged up by 0.7% in Q2, following a 0.6% increase in the preceding period.