Investment in Latvia
Latvia - Investment
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 - 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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December 8, 2020
Consumer prices declined 0.28% over the previous month in November, following October’s flat reading.
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.
November 9, 2020
Consumer prices were unchanged over the previous month in October, following September’s 0.09% uptick.
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.
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.