Violence broke out in Riga late on Tuesday after a peaceful protest involving thousands of people. The demonstrators were demanding new parliamentary elections in the Baltic state. Protestors accused the government of economic mismanagement amid the current financial crisis.
Protestors threw rocks and bottles at the parliament building, smashed windows and looted stores. Riot police used tear gas and truncheons to disperse the crowd. Several police officers were reported injured.
"Latest reports say 32 people were injured during the unrest in Riga, 28 of them were taken to hospital," health officials said. "The other four received medical assistance at the scene."
Police said 126 people had been arrested. The rioters were dispersed by 11 p.m. (21:00 GMT).
Latvia's economy, which until last year enjoyed rapid growth, is expected to decline by 5% this year.
Latvia has been forced to take a 7.5 billion euro (about $10 billion) loan from the International Monetary Fund (IMF) and the European Union. The country plans to cut public spending by 15%, freeze state-paid workers' salaries and raise taxes. The measures have sparked protests across the former Soviet republic and now EU and NATO member.