Consumption in Latvia
Latvia - Consumption
Growth plummets to near three-year low in Q2
GDP increased 2.0% on annual basis in the second quarter, according to a second estimate released on 30 August. This was a notch below the preliminary estimate of a 2.1% year-on-year increase, was considerably below Q1’s 3.0% expansion and marked the slowest expansion since Q3 2016. However, in seasonally- and working day-adjusted quarter-on-quarter terms, growth rebounded to 0.7% in Q2, from a 0.1% contraction logged in Q1.
A faltering external sector and weaker investment activity chiefly led the deceleration in the second quarter. Fixed investment growth nearly halved (Q2: +4.3% year-on-year; Q1: +8.0% yoy), beset by weaker inflows of EU funds, thus denting overall domestic demand. On a more positive note, household spending accelerated (Q2: +3.5% yoy; Q1: +2.8% yoy), supported by a tighter labor market, while government spending growth largely held up (Q2: +2.3% yoy; Q1: +2.4% yoy).
Meanwhile, the external sector weakened in the quarter as imports surged and exports deteriorated. Imports jumped 7.0% year-on-year in the second quarter, accelerating considerably from the first quarter’s 2.2% increase. Meanwhile, exports decelerated markedly (Q2: +1.9% yoy; Q1: +4.8% yoy) amid stagnant merchandise shipments.
FocusEconomics panelists expect GDP to increase 3.0% in 2019, which is down 0.4 percentage points from last month’s forecast, and also 3.0% in 2020.
Latvia - Consumption Data
|Consumption (annual variation in %)||5.3||1.2||2.7||1.4||4.2|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||0.55||0.0 %||Jun 30|
|Exchange Rate||1.10||0.65 %||Sep 04|
|Stock Market||1,025||0.17 %||Sep 04|
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October 9, 2019
Consumer prices ticked up 0.1% from the previous month in September, down slightly from August’s 0.2% drop.
October 4, 2019
Industrial production rose 2.0% in annual working-day adjusted terms in August, rebounding from July’s 1.3% dip.
September 9, 2019
Consumer prices ticked up 0.2% from the previous month in August, contrasting July’s 1.0% drop, which had marked the strongest monthly contraction since July 2015.
September 3, 2019
Industrial production fell 1.3% in annual working-day adjusted terms in July, contrasting June’s robust 4.4% increase.
August 12, 2019
Consumer prices fell 1.0% in July from the previous month in July, contrasting June’s 0.4% increase and marking the strongest monthly contraction since July 2015.