Latvia: Growth picks up in the fourth quarter

According to a flash estimate released by the Statistical Institute on 30 January, the economy expanded 5.0% in year-on-year terms in the fourth quarter of 2018, up slightly from the third quarter’s sturdy 4.8% increase. The booming construction sector spearheaded the expansion.

In seasonally-adjusted quarter-on-quarter terms, growth decelerated somewhat in the fourth quarter, clocking in at 1.1% compared to 1.8% in the third quarter.

Latvia GDP Forecast

The Central Bank forecasts growth of 3.5% in 2019 and 3.1% in 2020. FocusEconomics panelists expect GDP to increase 3.5% in 2019, which is up 0.1 percentage points from last month’s forecast, and 3.2% in 2020.