Investment in Latvia
Latvia - Investment
Contraction in GDP softens again in Q1
The economy shrank 1.3% year-on-year in the first quarter of 2021, according to detailed national accounts data released on 31 May. The reading showed a slight improvement from the 1.5% contraction logged in Q4 2020, and was also above the 2.2% downturn reported in the preliminary Q1 release. That said, the result still marked the fifth consecutive quarter of declining output.
Q1’s softer downturn was chiefly due to a milder decline in consumer spending (Q1: -7.3% yoy; Q4: -8.5%). On the other hand, the result was weighed on by deteriorating capital and public spending: Fixed investment fell 4.5% in Q1, contrasting the previous quarter’s 2.6% rise, while government consumption growth slowed slightly to 2.9% in the first quarter (Q4: +3.0% yoy).
Externally, exports of goods and services fell 1.0% year-on-year in Q1, swinging from the 3.0% increase logged in the previous quarter. Meanwhile, imports grew 0.3% annually, moderating from Q4’s 1.8% rise.
On a seasonally-adjusted quarter-on-quarter basis, GDP fell 1.7% in Q1 (Q4: +1.1% yoy).
GDP is set to recover from the pandemic’s impact this year, as demand revives both abroad and at home. That said, still-high Covid-19 infections and a relatively lagging vaccination campaign, coupled with concerns regarding the strength of the recovery in the Eurozone, cloud the outlook.
FocusEconomics panelists see GDP growth of 3.6% in 2021, which is unchanged from last month’s estimate. In 2022, the economy is seen expanding 4.8%.
Latvia - Investment Data
|Investment (annual variation in %)||-1.2||-8.2||11.3||15.8||3.1|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||0.55||0.0 %||Jun 30|
|Exchange Rate||1.12||0.65 %||Dec 31|
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May 31, 2021
The economy shrank 1.3% year-on-year in the first quarter of 2021, according to detailed national accounts data released on 31 May.
May 10, 2021
Consumer prices rose 0.91% over the previous month in April, quickening from March’s 0.73% increase and marking the fastest rise in over two years.
May 5, 2021
Industrial production rose 4.7% in year-on-year, calendar-adjusted terms in March, firmly above the 2.7% increase logged in February. March’s higher reading was driven by faster output growth in the manufacturing sector, as well as activity in the mining and quarrying sector rebounding solidly.
April 29, 2021
GDP fell 2.2% on an annual basis in the first quarter of 2021, according to a preliminary release.
April 9, 2021
Consumer prices rose 0.73% over the previous month in March, quickening from February’s 0.46% increase.