Latvia: Industrial production decelerates sharply at the outset of the year
March 6, 2013
In January, industrial production increased 1.9% over the same month last year, which came in only as a fraction of the 10.5% expansion registered in December. The January result represented, in fact, the slowest print in more than three years. The deceleration mainly reflected slower growth in electricity and gas supply, while growth in manufacturing output was flat.
A month-on-month comparison paints a bleaker picture than the one suggested by the annual figures, as industrial production contracted a seasonally adjusted 3.5% in January, which contrasted the 2.5% expansion observed in December.
As a result of the softer increase, the trend continues to point downwards, with annual average growth in industrial production dropping from 6.2% in December to 5.7% in January.
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