Latvia: Growth decelerates in Q1
Growth decelerated to 2.8% in year-on-year terms in the first quarter of the year, down sharply from the previous quarter’s 5.1% increase and marking the weakest expansion since Q3 2016. The deceleration was led by a marked slowdown in investment growth, particularly in the construction sector, and a largely stagnant industrial sector weighed on by a contraction in electricity, gas and heat supply.
In seasonally-adjusted quarter-on-quarter terms, the economy contracted 0.3% in the first quarter, following the healthy 0.9% expansion recorded in the final quarter of last year. The first quarter result marked the first contraction in output in over three years.