Article

In 2025, Latvia's economy is diversifying, with strong potential in the bioeconomy, smart energy, and defense sectors. The bioeconomy benefits from expertise in natural resource management, a robust food-processing industry, and a new protein plant in collaboration with the University of Biotechnology.

Latvia's biomedicine sector exports 76% of its products to the USA, Japan, Canada, and Europe. The smart energy sector is expanding with 16 GW of offshore wind potential and advancements in hydrogen storage technologies.

Latvia's ICT ecosystem boasts €1.4 billion in annual exports and strong capabilities in quantum technologies. The construction sector, contributing over 7% to GDP, focuses on sustainable building solutions with export opportunities in Sweden, Germany, and Lithuania. Latvia plans to allocate up to 5% of GDP to defense by 2026 and has committed €1.17 billion for military infrastructure by 2036.