Shorouk Express 
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.
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