In 2016, Latvia’s GDP had increased by 2.0 %. GDP at current prices amounted to EUR 25 billion, whereas at constant prices – to EUR 21.8 billion.
In Q4 2016, as compared to the 3rd quarter, GDP at constant prices grew by 1.1 % (according to seasonally adjusted data). In Q4 2016, compared to the corresponding period of 2015, GDP grew by 2.2 % according to seasonally adjusted data, and by 2.6 % – according to seasonally non-adjusted data.
In Q4, GDP at current prices amounted to EUR 6.7 billion, whereas at constant prices of 2010 – to EUR 5.9 billion.
The manufacturing sector grew by 6 %, of which manufacture of wood and of products of wood – by 8 %, manufacture of computer, electronic and optical products – by 16 %, manufacture of fabricated metal products – by 9 %, and manufacture of food products – by 1 %.
Electricity, gas, steam and air conditioning supply sectors experienced growth of 7 %, of which electric power generation, transmission and distribution increased by 6 %.
Production volumes in agriculture decreased by 3 %, with a 5 % drop experienced in crop production, while animal production remained at the level of the previous year.
The forestry and logging sector witnessed growth in the amount of 3 %. The sector experienced reduction in prices.
There was a 38 % increase in total fish catch, however, the fish catch in the Baltic Sea and Gulf of Riga dropped by 3 %.
Construction production volume had decreased by 18 % that year. A drop of 4 % could be observed in the construction of non-residential buildings, and a drop of 33 % was recorded in the construction of civil engineering structures (including motorways, streets and roads). Construction of residential buildings grew by 2 %.
Retail trade had increased by 2 %, of which retail sale of automotive fuel – by 2 %, and trade in non-food products – by 5 %.
Wholesale trade has gone up by 4 %.
The transport sector grew by 0.5 %. Passenger traffic increased by 4 %, whereas freight traffic dropped by 7 %.
Growth of 9 % was recorded in accommodation and food service activities, of which 11 % in accommodation services and 7 % in food services.
Information and communication services were provided at a volume that was 3 % higher than that of 2015.
The finance and insurance sector experienced growth of 3.5 %, which was facilitated by successful work of banks and insurers.
Operations with real estate have remained at the level of the previous year.
The volume of arts, entertainment and recreation services increased by 3 %, with gambling and betting activities growing by 5 %, creative and arts activities – by 6 %, and sports activities experiencing a drop of 4 %.
Public administration and defence grew by 4 %, education – by 1 %, and health sector – by 2 %.
The volume of taxes (excise, value added and customs taxes) on products had increased by 6 % in 2016.
GDP growth in Q4 2016 was mainly facilitated by the successful development of industrial sectors (growth of 10 %) and the increase in the amount of services provided (of 2 %).
In 2016, final consumption of households increased by 3 %, of which expenditure on food increased by 1 %, on transport (expenditure on public transport, purchase and exploitation of transport vehicles) – by 6 %, and on recreation and culture – by 3 %. Expenditure on housing dropped by 1 %, as a decrease was observed in the expenditure on electricity, gas and other fuel, and less was also spent on household maintenance and repairs. The increase in final consumption of households was facilitated by growth in the income of population, as well as stability of consumer prices.
Government final consumption grew by 3 %.
Gross fixed capital formation reduced by 11 %. Investments in equipment and machinery dropped by 1 %, in intellectual property and cultivated assets – by 21 %, while investments in construction decreased by 18 %.
Exports grew by 4 %, of which exports of goods – by 2 % (the goods that were exported the most were electrical machinery and equipment, machinery and mechanical appliances, as well as sawn wood). The increase in the exports of transport, IT and construction services facilitated 4 % growth of the total exports of services.
Import volumes have grown by 2 %. Imports of goods increased by 5 % due to growth in the imports of passenger cars and pharmaceutical products, however, a negative impact was caused by imports of electrical machinery and equipment, machinery and mechanical appliances, as well as diesel fuel. Imports of services grew by 2 %. The services that were imported the most were ones related to transport, tourism and trade.
The GDP increase in Q4 2016 was based on final consumption expenditure and amounted to 2.9 percentage points of the total GDP. The GDP was affected negatively by gross capital formation and the balance of exports and imports in the amount of 0.1 and 0.2 percentage points, respectively.