Latvia: Industrial production accelerates in November
January 3, 2012
In November, industrial production expanded 8.5% over the same month last year, which represents a notable acceleration compared to the 5.0% increase observed in October. The November expansion was mainly the result of growth in mining and quarrying (+18.3% year-on-year), as well as in manufacturing (+12.1% yoy). Only electricity and gas supply contracted in November. On a month-on-month comparison, industrial production increased a seasonally adjusted 0.9% over the previous month, which contrasted the 0.8% drop recorded in October. Industrial production reached its peak in June 2011 and its downward trend has now continued for the fifth consecutive month, with annual average growth edging down from 10.6% in October to 10.1% in November, thus suggesting that industrial production is losing momentum. In its October inflation report, the Central Bank estimates that the economy has grown 4.0% in 2011. For 2012, the Bank expects economic growth to moderate to 2.5%.
Author: Ricardo Aceves, Senior Economist