Latvia: Latvian economy swings into contraction in Q2 2023; posts weakest reading in the Eurozone
A flash release revealed that GDP declined 0.9% year on year in the second quarter of 2023, marking the lowest reading since Q1 2021 and the worst result across the Eurozone. Q2’s figure deteriorated notably from the previous quarter’s 0.8% expansion. Additionally, GDP contracted 0.6% in seasonally adjusted quarter-on-quarter terms in Q2, deteriorating from Q1’s 0.5% rise.
While detailed data is not yet available, the chief driver of Q2’s annual contraction was a 4.0% drop in the producing sectors of the economy (Q1: +1.3% yoy). In contrast, services picked up steam, growing 0.6% (Q1: +0.4% yoy).
More detailed data will be released on 31 August.