Analytics, GDP, Latvia, Statistics
International Internet Magazine. Baltic States news & analytics
Friday, 29.03.2024, 08:18
Latvia: GDP has grown by 2.9% in the 3rd quarter
As compared
to the previous quarter, GDP (seasonally and calendar adjusted data) rose by
0.7%.
GDP changes at constant prices in the 3rd quarter of 2017 – 3rd quarter of 2019
(as %)
In the 3rd quarter of 2019, GDP at current prices comprised EUR 8 061.4 mln EUR
Production approach
(at constant prices, seasonally and calendar non-adjusted data)
In the 3rd quarter
of 2019, according to provisional calculations, there was a significant rise of
29.5% in agriculture (mainly in crop production), but in forestry and logging
and fishery there was a drop of 3.7% and 18.7%.
In mining
there was a decrease both in quarrying of sand and gravel of 21.2% and in
quarrying of peat – of 7.3%.
Manufacture
of food products has increased for the first time since 2nd quarter
of 2018.
Value added
of manufacturing has grown by 4.1%. It was promoted by the increase of
production output in four largest manufacturing sectors: manufacture of
fabricated metal products, manufacture of computer, electronic and optical
products (of 21.3%), production of building materials (of 2.5%), manufacture of
food products (of 0.9%).
But
decrease of 2.7% was observed in manufacture of wood and of products of wood,
which is the largest manufacturing sector. Also fall in manufacture of chemicals
and chemical products of 6.9%, manufacture of wearing apparel – of 6.7%,
manufacture of rubber and plastic products – of 5.0% and manufacture of
beverages – of 4.3% left negative impact on the development of sector.
Construction
production volume rose by 5.9%. Growth of construction output was observed in
almost all sectors: construction of buildings rose by 11.7%, civil engineering
– by 2.1% (of which, increase of 3.0% was observed in construction of roads and
railways, of 24.0% – in construction of other civil engineering projects, but
construction of utility projects negatively affected development of sector –
there was a drop of 4.6%).
Since
the 1st quarter of 2017, volume of construction of roads and
railways grows.
Specialised
construction activities were carried out more by 2.4% than last year.
Retail
trade increased by 1.9%, of which trade in food products – by 0.1%, but trade
in non-food products (including sale of automotive fuel at gas stations) – by
3.0%. Wholesale and retail trade and repair of motor vehicles and motorcycles
rose by 13.3%, but wholesale trade – by 6.6%.
In
transport and storage sector decrease of 4.6% was promoted by drop in freight
transport by 5.4%, fall in warehousing and support activities for
transportation by 12.7%, rise in passenger traffic by 7.3%, increase in postal
and courier activities by 23.8%.
Volume of
accommodation and catering services grew by 9.4%, of which accommodation – of
5.3%, but catering – increased by 11.3%.
Development
of information and communication services sector has decreased by 0.3%, of
which in telecommunication sector – by 9.0%, but increase was observed in
computer programming and consulting – of 2.8% and in information services – of
6.2%.
A drop of
14.3% in financial and insurance activities affected all sectors: financial
service activities reduced by 14.1%, insurance, reinsurance and pension funding
– by 12.7%, but activities auxiliary to financial services and insurance
activities – by 15.3%. The largest impact on the fall of sector was left by
reduction of the value added of monetary financial institutions which was
determined by rapid growth of expenditure (mainly, commission expenses, other
administrative expenses). Fall in insurance, reinsurance and pension funding
was affected by increase of retirement capital paid in private pension
plan (3rd pillar), while in non-life insurance there was a
slight rise.
Volume of
professional, scientific and technical activities rose by 8.2%, of which:
activities of head offices; management consultancy activities – by 20.6%,
architectural, engineering, technical testing and analysis services – by 11.8%,
professional, scientific and technical activities – by 16.8%, while drop of 2.3%
was observed in advertising and market research.
In the 3rd quarter of 2019 the volume of taxes on products (value added tax, excise and customs taxes) decreased by 0.4%.
Since
the 1st quarter of 2017, exports indicators of other economic
activity show positive trend, which mainly is made up by technical,
trade-related and other economic activity services, professional and management
services (17% of services exports).
Imports of goods and services grew by 1.0%. Imports of
goods, which comprises 84% of total imports, has risen by 1.0%, but imports of
services – by 0.6%.
Income
approach
(At current prices,
seasonally and calendar non-adjusted data)
Compared to the 3rd quarter of 2018, in the
3rd quarter of 2019 compensation of employees at current prices
grew by 9.1%, of which total wages and salaries – by 9.2% and employers' social
security contributions – by 8.6%. The sharpest increase in compensation of
employees was registered in construction – by 14.1%, information and
communication services – by 9.8% and manufacturing – by 8.7%.
Total wages and salaries and changes
Gross operating surplus and mixed income increased by 1.8%,
whereas the balance of taxes on production and imports and subsidies went up by
3.7%.