Forests have great importance for the Latvian economy, environment, landscape, flora and fauna. Forest sector contribution to the national GDP is 10…12 %, providing employment for 75…80 thousand people. In the paper was analysed accessible forest and wood resources in Latvia, forest harvesting volumes and dynamics of wood processing industries. Efficient investments in wood processing sector and the available local resources have provided the rapid growth of this field. Wood and wood products are the most important Latvian export products. It is also described strengths and weaknesses of the forest sector in Latvia.