Analytics, Economics, GDP, Latvia

''Trends show that the economic free fall has ended, and we now must stabilize and move ahead,'' said Zigure.

At the same time, Zigure also pointed out that it will be hard to come to some sorts of conclusions after the first quarter results are released, and that people must wait until the end of the second quarter to better understand national economy trends, writes LETA.

As reported, GDP in Latvia last year was down 18%, based on seasonally-unadjusted data.

In the fourth quarter of 2009, compared to the fourth quarter of 2008, GDP was down 16.9%.

The downward trend in 2009 was "led" by drops in volume in the following sectors: retail (down 31.4%, 14.1% proportion of GDP structure), transportation/communications (down 10.3%, 11% proportion), processing industry (down 9%, 11% proportion), construction (down 38.5%, 6.1% proportion).

In the fourth quarter of 2009, year-on-year final private consumption expenditure on alcoholic beverages and tobacco fell by 9.3%, on food – by 19.6%, on transport – by 37.1%, on clothing and footwear – by 37.2%, and on restaurants and hotels – by 40.4%.

Purchase volumes in final private consumption (at constant prices) continued to fall.

Government final consumption expenditure decreased by 14.3%, but expenditure on gross capital formation – by 38.4%. Export of goods (72.9% of total exports) grew by 6.0%, with exports of services falling by 28.5%. Meanwhile, the volume of imports of goods (84.4% of total imports) decreased by 25.7%, while the volume of imports of services fell by 33.8%.

Compared to 2008, private final consumption expenditure on food decreased in 2009 (at current prices) by 16%, on alcoholic beverages and tobacco – by 19%, on transportation – by 25.1%, on restaurants and hotels – by 43%, and on clothing and footwear – by 44.7%.

Over 12 months, purchase volume in private final consumption (at constant prices) continued to fall in 2009. Government final consumption expenditure decreased by 9.2%, but expenditure on gross capital formation – by 37.7%. Export of goods (66.2% of total exports) dropped by 12.0%, and exports of services – by 17.4%. Meanwhile, the volume of imports of goods (83.2% of total imports) decreased by 34.2%, with the volume of imports of services falling by the same amount.