BAKU, Azerbaijan, November 4. Latvia’s manufacturing sector has picked up speed, showing its fastest annual output growth since June 2022 in September 2025, fueled by strong external demand, and the industry has been on the rise for seven consecutive months, Trend reports.
Domestic-oriented industries also continued to contribute positively to growth, supported by household purchasing power, rising wages, recent tax changes, price stabilization, and other favorable factors.
Compared to September 2024, manufacturing output increased by 11.3 percent in unadjusted terms and by 8.5 percent after calendar adjustment. Overall, in the first three quarters of 2025, total manufacturing production was 4.5 percent higher than a year earlier.
The strongest positive impact came from two of the largest subsectors—wood processing (+12.8 percent) and food manufacturing (+13 percent)—both maintaining strong performance for the fourth consecutive month. Output also rose notably in metal products (+16 percent), automobile and trailer manufacturing (+37 percent), and computer, electronic, and optical equipment (+14.5 percent).
In September, the sector’s total turnover in current prices increased by 14.1 percent year-on-year, with export volumes rising by 16.1 percent and domestic sales by 10.5 percent. The biggest gains were seen in wood and food product exports.
Analysts expect steady growth to continue through the final quarter of 2025, with annual manufacturing volumes likely to significantly exceed 2024 levels. External demand and export expansion are expected to remain key growth drivers.
However, the sector still faces challenges from global geopolitical uncertainty and potential U.S. import tariffs, which could affect the competitiveness of Latvian exporters. Experts emphasize the need for manufacturing companies to maintain flexibility and adaptability in the face of changing global trade conditions.
Entities with residual exposure to CIS markets are advised to persist in their operational diversification strategies and actively pursue novel export and supply chain opportunities.
Stay up-to-date with more news on Trend News Agency's WhatsApp channel