The analyst expects the construction industry in Latvia to grow in real terms by 5.2% in 2025, supported by investments in transport, energy, electricity, and housing projects. According to the Central Statistical Bureau (CSB), the volume of output for the construction of roads and railways grew sharply by 78.8% year-on-year (YoY) in the first quarter of 2025, increasing from EUR40.2 million ($43.8 million) in Q1 2024 to EUR71.8 million ($78.3 million) that quarter. Furthermore, in October 2024, Saeima, which is the parliament of the Republic of Latvia, approved the 2025 Budget, with an expenditure of EUR17.1 billion ($18.2 billion). The budget includes an allocation of EUR2.9 billion ($3.1 billion) for economic activity, including maintenance and renovation of national roads, public transport and the Rail Baltica project; EUR1.9 billion ($2 billion) for the health sector; EUR1.2 billion ($1.3 billion) for the education sector; EUR239.4 million ($254.6 million) for the recreation, culture and religion, including for film industry, art and literature, cultural heritage, sports and other measures.
The industry is, however, expected to slow down in the coming quarters, owing to an increase in public debt and decrease in permits. According to the data released by the European System of Accounts (ESA), the general government debt at the end of 2024 reached EUR19 billion ($20.7 billion), which is 47.7% of GDP, increasing by EUR1.5 billion ($1.6 billion) over the year. In April 2025, the Ministry of Finance forecasted a modest 1.4% growth in total exports for 2025 but acknowledged that global economic uncertainty and trade wars could pose further challenges. The industry is expected to register an average annual growth of 3.4% from 2026 to 2029, supported by investments in transport and renewable energy infrastructure projects. The government aims to reduce greenhouse gas emissions by 65%, compared to 1990 levels, by 2030 and achieve climate neutrality by 2050. To support this target, Latvia is focusing on increasing the capacity of renewable energy across the country. In March 2025, the European Investment Bank (EIB) has granted a EUR200 million ($217.9 million) loan to a domestic energy company Latvenergo AS to modernize Latvia’s electricity distribution network, aiming to improve the reliability and efficiency of power supply for nearly 1.9 million customers.
The industry is, however, expected to slow down in the coming quarters, owing to an increase in public debt and decrease in permits. According to the data released by the European System of Accounts (ESA), the general government debt at the end of 2024 reached EUR19 billion ($20.7 billion), which is 47.7% of GDP, increasing by EUR1.5 billion ($1.6 billion) over the year. In April 2025, the Ministry of Finance forecasted a modest 1.4% growth in total exports for 2025 but acknowledged that global economic uncertainty and trade wars could pose further challenges. The industry is expected to register an average annual growth of 3.4% from 2026 to 2029, supported by investments in transport and renewable energy infrastructure projects. The government aims to reduce greenhouse gas emissions by 65%, compared to 1990 levels, by 2030 and achieve climate neutrality by 2050. To support this target, Latvia is focusing on increasing the capacity of renewable energy across the country. In March 2025, the European Investment Bank (EIB) has granted a EUR200 million ($217.9 million) loan to a domestic energy company Latvenergo AS to modernize Latvia’s electricity distribution network, aiming to improve the reliability and efficiency of power supply for nearly 1.9 million customers.
The Construction in Latvia - Key Trends and Opportunities to 2029 (H2 2025) report provides detailed market analysis, information, and insights into the Latvian construction industry, including:
- The Latvian construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Latvian construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Latvia. It provides:
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Latvia, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance3 Latest news and developments4 Project analytics5 Construction Market Data6 Risk Profile
7 Appendix
List of Tables
List of Figures
