Latvia: Economic activity loses vigor in Q1
April 29, 2016
Latvia’s economic activity decelerated substantially at the turn of the year. According to a preliminary estimate released by the National Statistics Office on 29 April, GDP increased 1.8% in Q1 over the same period last year. The print came in below the 2.7% expansion registered in Q4 2015 and marked the weakest increase since Q1 2015, when the economy grew also at a 1.8% pace.
Although a detailed breakdown of data was not released with the preliminary estimate, the statistical office signaled that economic growth in Q1 was mainly supported by a 2.3% expansion in trade and growth of 0.5% in manufacturing. However, growth was dragged by a contraction in the construction sector.
A quarter-on-quarter comparison confirms the deceleration suggested by the annual data. GDP, when adjusted for seasonal factors, decreased 0.1% in Q1, which followed the 0.4% contraction registered in Q4. More complete data will be published on 31 May.
Author: Ricardo Aceves, Senior Economist