GDP in Latvia

Latvia GDP | Economic News & Forecasts

Latvia - GDP

Q4 GDP expansion faster than previously reported

In Q4, Latvia’s GDP increased 2.6% over the same period last year, according to a revised set of data released by the Statistical Institute on 1 March. The increase was revised up from the initial flash estimate that saw the economy growing 2.1%. Q4’s result marked the fastest increase in a year and a substantial acceleration compared to the 0.5% year-on-year expansion in Q2. Sequential data was also encouraging as GDP increased a seasonally-adjusted 1.1% in Q4, the fastest pace since June 2015. Q4’s final result was also revised up from a preliminary 0.8% increase.

Looking at the GDP components, total consumption was the main driver behind the quarterly acceleration. Government consumption picked up from a 1.7% increase in Q3 to a 4.9% expansion in Q4—the fastest pace since Q1 2013. Likewise, private consumption growth accelerated to 3.3% in Q4 (Q3: +3.1% year-on-year). On a less positive note, the disruption in inflows of EU structural funds continues to hurt gross fixed investment which dropped for a sixth consecutive quarter (Q4: -5.5% yoy, Q3:-12.2% yoy).

On the external front, exports of goods and services increased for a third consecutive period, showing a solid 3.9% expansion in Q4 (Q3: +3.1% yoy).However, due to stronger domestic demand, imports accelerated and increased 4.1% in Q4, which came in well above the 1.2% rise in Q3. As a result, net exports were a drag on overall economic growth, subtracting 0.1 percentage points from it, which contrasted the 1.1 percentage point contribution recorded in Q3.


The Central Bank expects the economy to expand 1.4% this year. For 2018, the Bank sees economic growth rising to 3.0%. FocusEconomics Consensus Forecast panelists expect the economy to grow 1.9% in 2017, which is down 0.1 percentage points from last month’s projection. For 2018, panelists expect the economy to expand 2.9%.

Latvia - GDP Data

2011  2012  2013  2014  2015  
Economic Growth (GDP, annual variation in %)6.2  4.0  3.0  2.4  2.7  

Sample Report

5 years of economic forecasts for more than 30 economic indicators.

Download

Latvia GDP Chart


Latvia GDP
Note: Annual variation of gross domestic product (GDP) in %.
Source: Central Statistical Bureau of Latvia and FocusEconomics calculations.

Latvia Facts

ValueChangeDate
Bond Yield0.550.0 %Jun 30
Exchange Rate1.090.73 %Mar 27
Stock Market770-0.13 %Mar 27

Sample Report

Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.

Download

Start Your Free Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Economic News

Search form