Latvia: GDP growth improves in Q3
November 28, 2014
In the third quarter, GDP growth rose 2.4% over the same period last year, according to revised data released by the Central Statistical Bureau (Statics Latvia) on 28 November. The reading marked a slight improvement over the 2.3% increase observed in Q2 and was revised up from the 30 October preliminary estimate of GDP growth slowing to 2.1%.
Q3’s final result showed that the external sector contributed positively to overall growth. Exports of goods and services rose 0.3% year-on-year in Q3, which came in below the 1.7% expansion observed in Q2. However, imports contracted 1.1% in Q3, which marked a deterioration over the 2.3% expansion registered in Q2. Consequently, the net contribution from net exports swung from a 0.4 percentage-point detraction in Q2 to a 0.9 percentage-point contribution in Q3.
On the domestic front, growth in private and government consumption each decelerated to 2.1% in Q3, down from 2.3% and 3.9%, respectively in Q2. Gross fixed investment deteriorated and contracted 1.9% in Q3, which contrasted the 1.8% expansion observed in Q2.
A quarter-on-quarter comparison showed that GDP increased a seasonally-adjusted 0.5% in Q3, which came in below the 0.8% expansion tallied in Q2.
Author: Ricardo Aceves, Senior Economist