Latvia: GDP slows further in Q2
August 11, 2014
In the second quarter, GDP increased 2.5% over the same period last year, according to a preliminary flash estimate released by Statistics Latvia on 11 August. The reading came in below the 2.8% expansion registered in the first quarter and marked the slowest pace of growth since Q3 2010. According to the statistical office, a deterioration in industry was the main driver behind the quarterly slowdown. Moreover, services maintained the pace of growth, while construction showed notable growth in the second quarter.
A quarter-on-quarter comparison does not corroborate the slowdown suggested by the annual data. GDP rose a seasonally-adjusted 1.0% in Q2, which came in above the 0.6% expansion registered in Q1. According to Statistics Latvia, more detailed data, together with the new European System of Accounts (ESA 2010), will be released in the second half of September, which still needs to be confirmed.
Author: Ricardo Aceves, Senior Economist