Latvia Industrial Output Contracts for First Time in 16 Months

Latvia’s industrial production fell by 0.2% year-on-year in July 2026, following a 0.5% increase in the previous month. This marked the first contraction since March 2025, as output growth moderated in mining and quarrying (12.4% vs 13.8% in June), while activity declined at a faster pace in electricity, gas, steam, and air-conditioning supply (-35.6% vs -29.8%). Meanwhile, production increased in manufacturing (8.2% vs 5.0%), lifted by stronger gains in food products (11.7% vs 5.7%), textiles (131.9% vs 122.0%), rubber and plastic products (13.2% vs 0.5%), fabricated metal products, except machinery and equipment (33.9% vs 19.0%), and repair and installation of machinery and equipment (8.2% vs 1.2%). On a monthly basis, industrial activity rose by 0.1% in July, rebounding from a downwardly revised 0.9% drop in the preceding period.

Latvia’s industrial production increased 0.5% year-on-year in June 2026, slowing from a revised 5.9% rise in the previous month and marking the weakest growth since March 2025. Output growth moderated in manufacturing (5.0% vs. 7.2% in May), weighed down by smaller gains in food products (5.7% vs. 8.3%) and declines in wearing apparel (-16.8% vs. 25.8%), leather and related products (-11.8% vs. 3.8%), and paper and paper products (-7.9% vs. 6.9%). Production also dropped sharply for electricity, gas, steam, and air conditioning supply (-29.8% vs. 7.1%). Conversely, activity accelerated in mining and quarrying (13.8% vs. 2.2%). On a monthly basis, industrial production fell 0.8% in June, reversing from a revised 0.3% increase in May. In the second quarter of 2026, industrial production rose 4.2% compared with the same period a year earlier.

Latvia’s industrial production rose 6.2% year-on-year in May 2026, easing from a 7% gain in the previous month. This marked the softest growth since December 2025, as activity moderated in manufacturing (6.1% vs 6.8% in April), driven largely by a slowdown in the production of dairy products (8.5% vs 13.0%), printing and reproduction of recorded media (2.8% vs 12.2%), rubber and plastic products (13.8% vs 14.5%), electrical equipment (5.9% vs 6.3%), and other manufacturing (4.6% vs 17.1%). At the same time, activity decreased in electricity, gas, steam, and air-conditioning supply (10.5% vs 12.1%). Meanwhile, production recovered sharply in mining and quarrying (2.5% vs -8.3%). On a monthly basis, industrial activity grew by 0.4% in May, following a flat reading in the preceding period.