Latvia: Economy expands at fastest pace in four years
November 9, 2011
In the third quarter, GDP rose 5.7% over the same period last year, according to a preliminary flash estimate released on 9 November by the Central Statistics Bureau of Latvia. The third quarter expansion represented the fifth consecutive quarter of growing economic activity, following nine consecutive periods of contraction. Moreover, reading followed an already strong 5.6% expansion in the second quarter and marked the fastest pace since the fourth quarter of 2007. On a quarter-on-quarter seasonally adjusted basis, the economy expanded 1.3% in the third quarter, which was below the second quarter's 2.0% increase. A revised and more complete dataset will be published on 9 December. Additional economic information suggests that growth in the industrial sector remains solid. Based on monthly industrial production data, the industrial sector expanded 8.3% year-on-year in the third quarter, which was below the 13.0% increase registered in the second quarter. The Central Bank expects the economy to expand 3.3% this year.
Author: Ricardo Aceves, Senior Economist