Latvia: Industrial production suffers sharpest contraction in over five years in February

According to Latvia’s Central Statistical Bureau, industrial output dropped 3.2% in working day-adjusted year-on-year terms in February, an over five-year low and a steeper decline than January’s 1.8% fall. The print reflected a sharp contraction in the electricity and gas supply sector more than offsetting strong expansions in the manufacturing, and mining and quarrying sectors.

Meanwhile, annual average industrial production growth continued to moderate in February, falling to 0.7% from 1.7% in January. In seasonally-adjusted terms, industrial production rose 0.9% month-on-month in February, contrasting January’s 3.7% drop.

Latvia Industrial Production Forecast

Our panelists expect industrial production to expand 3.1% in 2019, down 0.1 percentage points from last month’s projection, and 3.2% in 2020.