GDP in Latvia
Latvia - GDP
According to comprehensive national accounts data released by the Statistical Institute on 1 March, economic growth reached 5.1% on an annual basis in the final quarter of 2018 (previously reported: +5.0% year-on-year), accelerating from the third quarter’s revised 4.5% expansion (previously reported: +4.8% yoy). For the year as a whole, annual GDP growth clocked in at 4.8% in 2018, a notch above 2017’s 4.6% expansion. Meanwhile, in seasonally-adjusted quarter-on-quarter terms, growth moderated to 1.2% in Q4 (previously reported: +1.1% quarter-on-quarter) from to 1.6% in Q3 (previously reported: +1.8% qoq).
The fourth-quarter expansion was driven by robust domestic demand. Fixed investment spearheaded the acceleration in Q4, picking up from an already impressive showing in Q3 (Q4: +18.6% yoy; Q3: +13.1% yoy). Meanwhile, household consumption remained sturdy, although it eased from the previous quarter (Q4: +3.9% yoy; Q3: +4.7% yoy), as election-related uncertainties likely weighed on consumer demand. Finally, government consumption gathered speed in the quarter, rising 4.2% year-on-year, up from 3.5% in Q3.
External sector conditions, meanwhile, were more challenging in the fourth quarter and weighed on overall growth. Exports contracted for the first time in over five years in Q4, against the backdrop of tumbling financial and construction services exports, falling 2.0% in Q4, compared to the marginal 0.5% increase observed in Q3. Nevertheless, thanks to a stronger deterioration in imports growth (Q4: +2.1% yoy; Q3: +5.8% yoy), the external sector’s contribution to growth improved from minus 3.7 percentage points in Q3 to minus 2.8 percentage points in Q4.
The Central Bank forecasts growth of 3.5% in 2019 and 3.1% in 2020. FocusEconomics panelists expect GDP to increase 3.5% in 2019, which is up 0.1 percentage points from last month’s forecast, and 3.2% in 2020.
Latvia - GDP Data
|Economic Growth (GDP, annual variation in %)||2.4||1.9||3.0||2.2||4.5|
5 years of economic forecasts for more than 30 economic indicators.
Latvia GDP Chart
Source: Central Statistical Bureau of Latvia and FocusEconomics calculations.
|Bond Yield||0.55||0.0 %||Jun 30|
|Exchange Rate||1.14||0.65 %||Jan 30|
|Stock Market||987||0.17 %||Jan 30|
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April 15, 2019
Consumer prices rose 1.1% from the previous month in March, accelerating sharply from February’s 0.1% increase.
April 8, 2019
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.
March 15, 2019
Consumer prices rose 0.1% from the previous month in February, moderating from January’s 0.5% increase.
March 5, 2019
According to Latvia’s Central Statistical Bureau, industrial output fell 1.8% in working day-adjusted year-on-year terms in January, compared to a strong 4.5% expansion in December.
March 1, 2019
According to comprehensive national accounts data released by the Statistical Institute on 1 March, economic growth reached 5.1% on an annual basis in the final quarter of 2018 (previously reported: +5.0% year-on-year), accelerating from the third quarter’s revised 4.5% expansion (previously reported: +4.8% yoy).