Latvia: Economic growth accelerates further in Q2
July 31, 2017
According to a flash estimate from the Statistical Institute released on 31 July, Latvia’s economy picked up further steam in the second quarter of 2017, after Q1’s already-healthy print. GDP rose 4.1% in Q2 compared to the same quarter of the prior year (Q1: +4.0 year-on-year), the fastest pace in several years. The economy grew 1.3% quarter-on-quarter in seasonally adjusted terms in the second quarter, slightly down from Q1’s multi-year high of 1.6%.
Q2’s results were underpinned by strong expansions in the industry and construction sectors, with the former likely due to a jump in demand from CIS countries and robust growth in orders from the EU. The service sector also contributed to Q2’s growth, despite growing significantly slower than the aforementioned sectors.