Latvia: Economic growth decelerates in Q4
According to a flash estimate released by the Statistical Institute on 30 January, Latvia’s economy lost steam in Q4, following remarkable growth in Q3. GDP rose 4.2% in Q4 compared to the same quarter last year, below Q3’s 5.8% year-on-year expansion. The result brought full-year growth to 4.5%, the highest reading in six years. The economy grew a meagre 0.3% in seasonally-adjusted quarter-on-quarter terms in the fourth quarter, significantly below the 1.5% increase in the third quarter.
The result was underpinned by an over 20% jump in the construction sector, whereas a weaker expansion of industrial output was behind the slowdown in the growth rate. Meanwhile, the service sector also contributed notably to the overall result in Q4, with retail trade expanding at a healthy pace on the back of strong wage rises, a tightening labor market and accommodative financing conditions.
A more detailed breakdown of the Q4 result will be released on 28 February.