bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 30.03.2017 | Name days: Nanija, Ilgmārs, Igmārs
LatviaLatvia

Latvia’s GDP experiences the weakest growth among Baltic States

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn Q3 2016, as compared to Q2, gross domestic product (GDP) at constant prices increased by 0.2 %, according to seasonally and calendar adjusted data.

In Q3, as compared to the corresponding period of 2015, GDP grew by 0.3 % according to both – seasonally and calendar adjusted data, as well as non-adjusted data. After receiving and analysing the detailed data of all sectors regarding Q3, it has been established that the volume of GDP growth has been lower than estimated a month before, according to the latest data from the Central Statistical Bureau of Latvia.

In Q3, GDP at current prices amounted to EUR 6.4 billion, whereas at constant prices of 2010 – to EUR 5.6 billion.

In Q3 2016, as compared to Q3 2015, the manufacturing sector grew by 4 %. Growth was recorded in all of the largest manufacturing sub-sectors: in manufacture of wood and of products of wood – of 4 %, in manufacture of food products – of 1 %, as well as in manufacture of fabricated metal products – of 6 %.  Significant growth was also observed in manufacture of computer, electronic and optical products – of 22 %, in manufacture of machinery and equipment n.e.c. – of 13 %, and in manufacture of other non-metallic mineral products – of 10 %. However, there was also a drop recorded in the industrial production of certain sub-sectors: in manufacture of wearing apparel – of 5 %, in manufacture of chemicals and chemical products – of 8 %, as well as in repair and installation of machinery and equipment – of 11 %.

In Q3 2016, as compared to the corresponding quarter of the previous year, the construction production volume decreased by 22 %. Construction volume dropped by 3 % in the segment of non-residential buildings (a share of 39 % of the total construction production volume) and by 9 % in the construction of residential buildings (a share of 16 %). The largest drop (of 36 %) was recorded in the construction of civil engineering structures (a share of 45 % of the total construction production volume), including the construction of harbours, waterways, dams and other water works – of 39 %, and the construction of highways, streets and roads, airfield runways, and railways – of 31 %. In turn, growth was recorded in the construction of bridges and tunnels – of 50 %.

Retail trade witnessed overall growth of 1 % in Q3 2016, of which retail trade in food products decreased by 2 %, whereas retail trade in non-food products increased by 3 %. Wholesale increased by 6 % during the respective period, while wholesale, retail trade and repair of motor vehicles and motorcycles indicated a drop of 3 %.

In Q3 2016, as compared to Q3 2015, the transportation and storage sector witnessed a drop of 2 %. Passenger traffic increased by 5 %, freight traffic dropped by 7 %, warehousing and support activities for transportation witnessed a drop of 3 %, while growth of 13 % was recorded in postal and courier activities.

Significant growth (of 11 %) was recorded in accommodation and food service activities, of which 14 % in accommodation services and 9 % in food services.

GDP growth was facilitated by taxes on products, which grew by 4 % in Q3 2016 in comparison to the corresponding period of the previous year.

In Q3 2016, final consumption expenditure rose by 3 %. That was influenced by a 3.2 % increase in private final consumption, where household expenditure on transport (expenditure on public transport, purchase and exploitation of transport vehicles) grew by 2 %, on recreation and culture – by 5 %, while expenditures on restaurants and hotels grew by 9 %. Expenditure on food has remained at the level of the previous year, while expenditure on housing decreased by 3 %. Final consumption of households was affected by the drop in consumer prices on transport and housing, household equipment and routine household maintenance, as well as the increase in the income of households. Government final consumption grew by 2 %.

Gross fixed capital formation witnessed a rapid decrease for the third quarter in a row, dropping by 26 % in Q3 2016, as compared to the corresponding period of 2015. A drop was recorded in all of the fixed capital groups: investment in equipment and machinery decreased by 12 %, in intellectual property – by 30 %, whereas in dwellings and other buildings and structures – by 39 %. The largest investments made in Q3 where recorded in the sector of public administration and defence, compulsory social security (22 % of the total investments), retaining the level of investments of the previous year within the sector. 13 % of the total investments were made in the transportation and storage sector, which was still 59 % less than the year before. Investments in the electricity, gas, steam and air conditioning supply sector decreased by 4 %. Growth in investments was recorded in the sectors of trade (5 %) and health and social work (3 %).

Exports of goods and services have grown by 2 % in Q3, whereas imports have increased by 1 %. Although it has to be noted that the respective increase was witnessed due to a drop in prices. The growth in exports had a positive impact on the GDP in the amount of 1.4 percentage points, whereas imports decreased the total GDP by 0.4 percentage points.

According to the flash estimate data of Estonia and Lithuania for Q3, the GDP of Lithuania has grown by 1.7 %, while the GDP of Estonia has increased by 1.1 %.

Ref: 102.109.109.6097


Leave a reply

Circle K Latvia commences reconstruction work at first fuel station

Circle K Latvia has begun reconstruction work at the first fuel station to give it a Circle K look. The opening of the first official Circle K fuel station is planned for May 2017.

WHO: Measles outbreaks occurring in Europe

In countries, where the proportion of the population vaccinated against measles has dropped, the spread of the dangerous infectious disease has been seen with larger outbreaks in Italy and Romania.

Government supports increase of funding for five sports

Prime Minister Maris Kucinskis’ led Latvian National Sports Council has decided to ask the Cabinet of Ministers to review the matter of increasing funding for five sports - bobsleigh, skeleton, luge, biathlon and ice hockey.

Nobel award in literature to be finally handed to Bob Dylan

American singer-songwriter Bob Dylan, who was last year named the laureate of the prestigious Nobel Prize in literature, has agreed to accept his award in Stockholm this week.

Caksa asked to refrain from illegal attempts to influence trade union

A letter has been sent to Healthcare Minister Anda Caksa, asking her to refrain from any attempts to illegally influence decisions of trade unions to refuse working extended work hours, as reported by Latvian Health and Social Care Workers Union.

Kucinskis wants to see Citskovskis in charge of State Chancellery because he has «bright eyes»

One of the strongest characteristics of Interior Affairs Ministry’s deputy state secretary Janis Citskovskis, who is a candidate for the post of director of State Chancellery, is the ability to form a strong and capable team, Prime Minister Maris Kucinskis said in an interview to 900 seconds programme in LNT.

Latvia’s largest taxpayers to be awarded for the twentieth consecutive year

On 30 March, the State Revenue Service will host the Large Taxpayers award ceremony. The festive event will be attended by Finance Minister Dana Reizniece-Ozola, SRS Director General Ilze Cirule and cooperation partners. Awards and certificates will be handed out to the country’s largest taxpayers in twelve nominations.

International credit risk insurer upgrades Latvia’s business risk rating

International credit risk insurer Coface has upgraded Latvia’s business risk rating to A3.

Mixer in U.S. suggests allies should be consistent in their messages

As the Baltic states foreign ministers met with the Speaker of the U.S. House of Representatives, the head of the Estonian foreign service emphasised the significance of consistency and clarity in messages by allies.

Circus support association claims signatures For Human Circus are fake

Riga Circus Support Association has submitted a request to State Police, Corruption Prevention and Combating Bureau and Saeima speaker to commence a criminal process in relation to signatures submitted to the Saeima by Animal Freedom.

Nordea economists: fate of Baltic States – prosperity or undue expensiveness?

Economic growth rate continues to speed up and become more balanced in all three Baltic States. Thanks to more rapid cyclic growth in Eurozone than expected and limited influence of political uncertainty on the global economy, Nordea Bank’s economists predict 3% growth in Lithuania and Latvia, and 2.5% growth in Estonia.

Georgia pleased with new visa-free travel to EU

After four and a half years of negotiations with the European Union, visa-free travel has entered into force for Georgian nationals travelling to the Schengen area, which has been marked by the Prime Minister of the Caucasian country with a trip to Athens and Brussels in a group of students.

Rinkevics invites USA to maintain presence in Baltic region

Strategic partnership between Baltic States and USA in the field of security and defence should continue, says Latvian Foreign Affairs Minister Edgars Rinkevics, inviting USA to maintain its presence in the Baltic region.

Delna: a possible conflict of interests identified in Healthcare Ministry

A possible conflict of interests has been identified in Healthcare Ministry. This conflict remains unresolved, as reported by Delna.

Risky births in Swedish regions prompt government to ensure maternity ward funding

Reacting to reports on risky births in remote places in Sweden, the country’s government has earmarked funding that would maintain the operation of smaller maternity wards and reopen closed ones.

Deputies propose forming a new Public Media Council, preserving NEPLP as a regulator

In a discussion, deputies emphasized the role of an efficient public broadcasters management model in strengthening the media environment, BNN was informed by Saeima’s press-service.

KNAB officers confiscate documents from Jurmala City Council

Corruption Prevention and Combating Bureau confiscated certain documents from Jurmala City Council on Tuesday, 28 March, as confirmed by the city council.

Trump suspends series of anti-climate change measures

Although the U.S. is one of the largest contributors to greenhouse gas emissions globally, the country’s President Donald Trump has issued an executive order aimed at suspending measures introduced by his predecessor in the post hoping to slow down climate change.

Natural gas reserves to be created in Latvia for energy crisis situations

Latvian Cabinet of Ministers supports the plan to entrust the creation of natural gas reserves to Conexus Baltic Grid, as BNN was informed by Economy Ministry.

Martins Bondars invites Riga residents to «topple» Nils Usakovs

Leaders of political parties Latvian Association of Regions and For Latvia’s Development believe the current Mayor of Riga Nils Usakovs is a real burden for the capital city’s development. This is why they have made it their main objective to «topple» Usakovs, as noted by Latvian Association of Regions.

Unity asks for assessment of Rail Baltica project for influence on Riga’s development

Unity’s representatives in Riga City Council Olafs Pulks and Nils Josts ask for an assessment of Rail Baltica project’s influence on the city’s development.

Latvian Defence Ministry signs agreement on cooperation in cyber security matters

As part of the E-skills week, Latvian Defence Minister Raimonds Bergmanis and President of Latvian Information and Communications Technology Association Signe Balina signed an agreement on cooperation in matters of cyber security.

Elvi and Aibe store networks form joint procurement group

Last week, two local Latvian store networks Elvi and Aibe commenced work on the creation of a joint company that would perform centralized procurements, as BNN was informed by representatives.

As UK readies to launch Brexit, interest in Estonian e-residency grows

A growing number of British citizens are applying for Estonian e-residency as the UK government plans to announce that the country will start leaving the EU later this week.

Expert: municipalities are incapable of attracting new residents

One way to increase budget revenue for municipalities is attracting new residents. This is a problem in Latvian municipalities, especially in Jurmala. «The city lacks cheap and accessible housing offers. This does not contribute to the attraction of new residents,» says real estate expert Jevgenija Dmitricenko.