Estonia and Latvia report economic growth in second quarter

The economies of Estonia and Latvia are showing signs of growth despite geopolitical uncertainties.

In Estonia, the GDP grew by 1.8% in the second quarter of 2026, marking the fifth consecutive quarter of expansion. This growth was primarily driven by manufacturing, which saw a 6.5% increase in value added, alongside significant contributions from agriculture and construction. However, some sectors faced declines, including wholesale and retail trade, real estate, and energy supply. Economists note that while the upward trend is evident, long-term growth remains constrained by low levels of investment.

In Latvia, the economy demonstrated resilient growth, with GDP increasing by 3% in the second quarter of the year. This expansion is supported by a broader range of sectors, including manufacturing, exports, and increased consumer spending. Experts highlight that previous investments have helped expand export product ranges, and a replenished ‘safety cushion’ among citizens is encouraging higher consumption. While the external environment remains uncertain due to regional conflicts, the diversification of growth across multiple sectors suggests more structural stability.