In the fourth quarter of 2025, Latvia recorded a 9.9% increase in construction output compared to the same quarter in 2024, as per calendar-adjusted data. The growth was primarily fueled by a 21.5% rise in civil engineering, a 6.3% increase in specialized construction work, and a 4% rise in building construction. Notably, the civil engineering sector benefited significantly from increased infrastructure projects, such as electricity and water supply facilities, which surged by 32%. Conversely, other civil engineering sectors saw a decline of 5%.

When comparing the fourth quarter of 2025 to the previous quarter, construction output increased by 2.4% based on seasonally adjusted data. Civil engineering grew by 6.3%, specialized works climbed by 1.7%, while building construction experienced a decline of 4.4%. This ongoing trend indicates a shift in investment priorities towards infrastructure over traditional building projects, illustrating a broader strategy in Latvia's construction sector aimed at improving essential services.

The rise in construction output is significant in the context of Latvia's economic recovery post-pandemic, reflecting both increasing demand for infrastructure improvements and the government's efforts to stimulate growth through investments in public works. As construction continues to adapt to changing needs, it's crucial for stakeholders to stay informed on trends that may influence future developments in the sector.