Latvia Economic Outlook
October 22, 2019Momentum appears to have remained muted in the third quarter, after faltering investment activity and a deteriorating external backdrop led growth to a near three-year low in the second quarter. Industrial production lost traction in July–August on tumbling mining and quarrying output, and near-stagnant manufacturing sector activity. On a more positive note, consumer demand appears to have held up in July–August, reflected by stronger retail sales growth amid a falling unemployment rate. Externally, merchandise exports dipped in August, suggesting that July’s rebound was likely just a one-off. Meanwhile, economic sentiment, on average, remained broadly stable from the previous quarter in Q3. In other news, on 20 September, Fitch Ratings affirmed the country’s A credit rating with a stable outlook, largely thanks to expected policy continuity and a narrowing fiscal deficit.
Latvia Economic GrowthGrowth is seen stable next year, supported by solid domestic demand. Private consumption should spearhead the overall expansion, amid a tighter labor market and lower inflation; investment activity is set to remain upbeat; and the external sector should remain vigorous, despite the challenging external environment. FocusEconomics panelists see GDP growing 2.8% in 2020, which is down 0.1 percentage points from last month’s forecast, and 3.0% in 2021.
Latvia Economy Data
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|Bond Yield||0.55||0.0 %||Jun 30|
|Exchange Rate||1.10||0.65 %||Sep 04|
|Stock Market||1,025||0.17 %||Sep 04|
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Latvia Economic News
November 8, 2019
Consumer prices rose 0.4% from the previous month in October, accelerating slightly from September’s 0.1% month-on-month uptick.
November 4, 2019
Industrial production jumped 7.0% in annual working-day adjusted terms in September, accelerating from August’s 2.0% increase and marking the strongest expansion since February 2018.
October 30, 2019
According to preliminary national accounts data released by Latvia’s Statistical Institute on 30 November, GDP rose 2.8% year-on-year in the third quarter.
October 9, 2019
Consumer prices ticked up 0.1% from the previous month in September, down slightly from August’s 0.2% drop.
October 4, 2019
Industrial production rose 2.0% in annual working-day adjusted terms in August, rebounding from July’s 1.3% dip.