Latvia: Industrial production steams ahead in December
February 3, 2011
In December, industrial production rose 15.7% over the same month the previous year, which was above the 11.5% expansion observed in November. The increase represented the eighth consecutive month of double-digit growth, suggesting the recovery in the industrial sector continues at pace. The December reading was mainly the result of faster growth in manufacturing output (+16.3% year-on-year) as well as electricity and gas supply (+16.5% yoy). In contrast, mining and quarrying swung from a 13.0% expansion in November to a 14.9% contraction in December. A month-on-month assessment, however, does not confirm the faster expansion suggested by the annual figures, as industrial production dropped a seasonally adjusted 1.90%, following a 0.50% fall in November. The trend continues to point to a healthy recovery in the industrial sector, with the annual average growth in industrial production rising from 12.2% in November to 13.8% in December, which marked the fastest clip in more than a decade.
Author: Ricardo Aceves, Senior Economist