Latvia: GDP growth slows markedly in Q4
February 10, 2014
In Q4, GDP expanded 3.5% over the same period of the previous year according to the flash estimate published by the statistical office on 10 February. The reading came in below the 4.5% expansion observed in Q3 and marked the slowest pace since Q1 2011. Quarterly data shows that the economy expanded 4.0% in 2013, which was below the 5.2% increase observed in 2012.
On a quarter-on-quarter basis, GDP rose a seasonally-adjusted 0.7% in Q4, which came in below the 1.2% expansion registered in Q3. More detailed data will be released on 11 March.
In its January Macroeconomic Developments Report, the Central bank indicated that it expects the economy to expand 4.1% in 2014. FocusEconomics Consensus Forecast panelists expect the economy to grow 4.3% in 2014, which is up 0.1 percentage points from last month's projection. For 2015, panelists expect the economy to expand also 4.3%.
Author: Ricardo Aceves, Senior Economist