Latvia: Industrial production contracts for the first time in over three years
April 3, 2013
In February, industrial production declined 1.9% over the same month last year, which contrasted the 1.9% expansion observed in January. The print represents the first contraction in more than three years and showed how a sharp deterioration in electricity and gas supply offset an improvement in mining and quarrying. Manufacturing output showed only a mild increase in February.
A month-on-month comparison confirms the negative annual reading, as industrial production contracted a seasonally adjusted 2.6% in February, which followed the 3.6% decline recorded in January.
As a result of the annual contraction, the trend continues to point downwards, with annual average growth in industrial production dropping from 5.7% in January to 4.9% in February.
FocusEconomics Consensus Forecast panellists expect industrial production to increase 5.6% this year, which is down 0.4 percentage points from last month's estimate. For 2014, the panel expects growth in industrial output to accelerate to 7.5%.
Author: Ricardo Aceves, Senior Economist