BAKU, Azerbaijan, August 13. Latvia’s construction sector recorded strong growth in the first half of 2025, with output in constant prices rising by 7.8 percent compared to the same period in 2024, according to unadjusted data. In the second quarter alone, the sector grew by 7.1 percent year-on-year, driven largely by increased activity in infrastructure projects such as solar panel installation and work on high-voltage facilities, Trend reports.
The growth was not evenly distributed across all construction categories. Civil engineering posted a sharp increase and remained the main driver of industry expansion in 2025, while specialized construction works stayed at last year’s levels.
In contrast, building construction saw a downturn in the second quarter, with output falling by 2.8 percent year-on-year. The decline was mainly due to reduced activity in non-residential building projects.
Civil engineering output surged by 27.7 percent in the second quarter compared to a year earlier, with strong growth across all segments. Specialized construction output remained stable, slipping by just 0.1 percent year-on-year. Gains were seen in building demolition and site preparation, as well as in finishing works.
The sector's trajectory was further evidenced by the data on
construction authorization metrics. In the second quarter of 2025,
the aggregate issuance of permits stabilized at approximately
1,192, reflecting a marginal decrement of 0.1 percent compared to
the corresponding timeframe in 2024. However, the anticipated
building area experienced a significant escalation of 33.2
percent.
This was predominantly propelled by industrial and logistics
infrastructures, alongside edifices designed for extensive
gatherings, educational purposes, and healthcare services.
The construction sector in Latvia is experiencing an uptick in
business sentiment, as evidenced by the confidence index reflecting
favorable dynamics. Market metrics indicate that the sector is
poised for ongoing expansion in the forthcoming quarters, bolstered
by persistent capital infusion.
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