Analytics, GDP, Latvia, Statistics

In the 2nd quarter, GDP at current prices amounted to EUR 6.3 bln, whereas at constant prices – to EUR 5.4 bln.

Production approach (at constant prices, seasonally and calendar non-adjusted data)

In the 2nd quarter of 2016, as compared to the 2nd quarter of 2015, the manufacturing sector grew by 7.2%. Growth was recorded in all of the largest manufacturing sub-sectors: in manufacture of wood and of products of wood – of 11%, in manufacture of food products – of 1%, in manufacture of fabricated metal products – of 19%, in manufacture of other non-metallic mineral products – of 8%, in manufacture of computer, electronic and optical products – of 26%, and in repair and installation of machinery and equipment – of 13%.  In turn, a drop in industrial production output was recorded in manufacture of chemicals and chemical products (of 5%) and in manufacture of electrical equipment (of 4%).

In the 2nd quarter of 2016, as compared to the corresponding quarter of the previous year, the construction production volume decreased by 19%. Construction volume dropped by 10% in the segment of non-residential buildings (a share of 42% of the total construction production volume), whereas the construction of residential buildings indicated growth of 10% (a share of 18%). The largest drop (of 34%) was observed in the construction of civil engineering structures (a share of 40% of the total construction production volume), including the construction of harbours, dams and other water works – of 49%, construction of bridges and tunnels – of 41%, as well as in the construction of highways, streets and roads, airfield runways, and railways – of 33%. In turn, growth was recorded in the construction of main pipelines, communication and electricity lines – of 34%, as well as in the construction of local pipelines and cables – of 13%.

The 0.1% drop in the value added of the manufacturing sector did not have a significant impact on the overall GDP growth rate.

The value added in service sectors grew by 1.7%, having a positive impact on GDP growth in the amount of 1.1% percentage points.

Retail trade grew by 3% in the 2nd quarter of 2016, of which retail trade in food products – by 0.1%, and retail trade in non-food products – by 5%. Wholesale increased by 8 % during the respective period.

In the 2nd quarter of 2016, as compared to the 2nd quarter of 2015, the transportation and storage sector grew by 3%. Passenger transport decreased by 1% and freight transport dropped by 2 %, whereas growth was recorded in postal and courier activities – of 11%, as well as in warehousing and support activities for transportation – of 8%.

The volume of entertainment and recreation services increased by 4%, including growth of 3% in the gambling and betting sector, as well as an increase of 10% in creative, arts and entertainment activities.

GDP growth was facilitated by taxes on products, which grew by 8% in the 2nd quarter of 2016 in comparison to the corresponding period of the previous year, forming 1 percentage point of total GDP growth.

Changes of Gross Domestic Product in the Baltic Countries
(at constant prices, seasonally and calendar non-adjusted, % of the corresponding period of the previous year)