Latvia: Economic growth stabilizes in Q2; sequential data suggest improvement
July 29, 2016
Following a deceleration in the first quarter, Latvia’s economy stabilized in the second quarter. According to a preliminary estimate released by the Central Statistical Bureau of Latvia (CSB) on 29 July, GDP increased 2.1% in Q2 over the same period last year, which matched the growth rate registered in Q1.
Although a detailed breakdown of data was not released with the preliminary estimate, the CSB signaled that economic growth in Q2 was supported by a 7.0% increase in manufacturing and a 3.0% expansion in retail trade. Conversely, the construction sector plunged a massive 22.0%, which weighed heavily on overall economic activity.
Sequential data were more encouraging about the state of the economy. A quarter-on-quarter comparison showed that GDP, when adjusted for seasonal factors, accelerated and increased 0.4% in Q2. The result was up from the 0.1% rise recorded in Q1. More complete data will be published on 31 August.
Author: Ricardo Aceves, Senior Economist