Latvia: GDP grows at slowest rate in more than two years
May 10, 2013
In the first quarter, GDP increased 3.1% over the same period last year, according to the flash estimate published by the statistical office on 10 May. The figure came in well below the 5.1% expansion recorded in the fourth quarter of 2012 but was just in line with last month's FocusEconomics Consensus Forecast panellists expectations.
According to the statistical office, the deceleration mainly reflected a contraction in manufacturing (-5.0% year-on-year). In contrast, both retail trade (+6.0% yoy) and construction (+9.0% yoy) recorded positive growth rates in Q1.
On a quarter-on-quarter basis, GDP rose a seasonally adjusted 1.2%, which came in below the 1.4% increase tallied in the fourth quarter. More detailed data will be released on 7 June.
In its April Macroeconomic Developments Report, the Central Bank maintained their growth projections and expects the economy to expand 3.6% this year. FocusEconomics Consensus Forecast panellists expect the economy to grow 3.4% this year, which is unchanged over the previous month's projection. For 2014, panellists see economic growth picking up to 4.0%.
Author: Ricardo Aceves, Senior Economist