Consumption in Latvia

Latvia - Consumption
Contraction in GDP softens in Q3 as Covid-19 restrictions ease
The economy shrank 2.6% year-on-year in the third quarter, according to detailed national accounts data released on 30 November. The reading was revised up from the 3.1% contraction reported in the preliminary release and was much smaller than the 8.9% plunge logged in Q2, which had marked the steepest downturn in over a decade. Q3’s result marked the third consecutive quarter of declining output, however.
The milder downturn reflected the gradual return of activity amid the lifting of coronavirus containment measures. Private consumption fell 7.3% on an annual basis in Q3, moderating from the 20.8% collapse recorded in Q2. Similarly, fixed investment slipped 0.8% year-on-year, after tumbling 4.9% in the prior quarter. Lastly, public spending growth accelerated to 2.5% in Q3 from 1.7% in Q2.
On the external front, exports of goods and services declined 3.7%, a much milder drop than Q2’s 13.1% slump, as external demand firmed. Likewise, imports slid 2.6% annually, softening from the 15.8% crash in Q2—reflecting the gradual strengthening of domestic demand.
On a seasonally-adjusted quarter-on-quarter basis, GDP surged 7.1%, rebounding strongly from the previous quarter’s 7.1% drop.
After this year’s pandemic-induced contraction, economic output is poised to rebound in 2021 as domestic and foreign demand strengthen. Nevertheless, the outlook remains dampened by the second wave of Covid-19 cases seen recently at home and in the EU, as well as uncertainty regarding the strength of the Eurozone recovery.
FocusEconomics panelists see GDP growth of 4.1% in 2021, which is down 0.5 percentage points from last month’s estimate. In 2022, the economy is seen expanding 3.9%.
Latvia - Consumption Data
2015 | 2016 | 2017 | 2018 | 2019 | |
---|---|---|---|---|---|
Consumption (annual variation in %) | 2.5 | 1.5 | 3.1 | 4.2 | 2.9 |
Latvia Facts
Value | Change | Date | |
---|---|---|---|
Bond Yield | 0.55 | 0.0 % | Jun 30 |
Exchange Rate | 1.12 | 0.65 % | Dec 31 |
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Economic News
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Latvia: Consumer prices fall annually again in November
December 8, 2020
Consumer prices declined 0.28% over the previous month in November, following October’s flat reading.
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Latvia: Contraction in GDP softens in Q3 as Covid-19 restrictions ease
November 30, 2020
The economy shrank 2.6% year-on-year in the third quarter, according to detailed national accounts data released on 30 November.
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Latvia: Consumer prices continue to drop annually in October
November 9, 2020
Consumer prices were unchanged over the previous month in October, following September’s 0.09% uptick.
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Latvia: Industrial production contracts again in September
November 3, 2020
Industrial production output dropped 2.8% in year-on-year, calendar-day adjusted terms in September, slightly softer than August’s 2.9% fall.
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Latvia: Economy contracts at softer clip in Q3
October 30, 2020
Economic activity tumbled for the third consecutive quarter in Q3, with GDP falling 3.1% on an annual basis according to preliminary national accounts data released by Latvia’s Statistical Institute on 30 October.