Latvia: Economic growth edges up in Q1

According to a flash estimate released by the Statistical Institute on 2 May, the Latvian economy expanded 4.3% in the first quarter of 2018 compared to the corresponding period last year, ticking up from the previous quarter’s 4.2% growth. In seasonally-adjusted quarter-on-quarter terms, the economy expanded an impressive 1.7% in Q1, marking the strongest result since Q4 2016, and more than four times faster than growth in the previous quarter (Q4 2017: +0.4% quarter-on-quarter)

Growth in the quarter was underpinned by a booming construction sector, which expanded over a third in annual terms. Meanwhile, industrial production grew 3.0%, and retail trade rose 5.0% in annual terms in the same period.

A more detailed breakdown of the Q1 result will be released on 31 May.

Latvia GDP Forecast

FocusEconomics Consensus Forecast panelists expect the economy to grow 3.9% in 2018, which is down 0.1 percentage points from last month’s projection. For 2019, panelists see the economy expanding 3.4%.