bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 22.05.2017 | Name days: Emīlija
LatviaLatvia

Latvia's GDP grew by 2.0% in 2016; by 2.6% in the fourth quarter

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn 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.

Ref: 225.109.109.2451


Leave a reply

Experts: Rail Baltica – connection that benefits everyone

The essence of Rail Baltica project is not combating the trends currently present in the world, but rather using them as an advantage, says advisor to the Bank of Latvia Andris Strazds. He adds that more and more economic and social development is centered in large and urban city centres.

Latvian companies ahead of neighbours in organization of business trips

Latvian businesses are more progressive in the organization of business trips than Lithuania. They do, however, spend a lot of money on planning and organizing of those trips. In addition, they also use inefficient financing methods – 20% of employees are forced to pre-finance their business trips from their own pockets, according to results of an international study.

Riga Eastern Clinical Hospital to identify patients using fingerprint data

Riga Eastern Clinical Hospital has introduced biometric data identification system that will be used to identify patients using fingerprint data, BNN was informed by the hospital.

FDC: micro-enterprise tax has created serious defects

The micro-enterprise tax has created serious defects for Latvia’s tax system, said Fiscal Discipline Council chairman Janis Platais in an interview to Latvijas Avīze.

Microsoft software licences cost Estonia millions each year

Estonian ministries and their subordinated institutions pay a total of under five million euros each year in Microsoft software licence fees.

Latvia’s unemployment rate was 9.4% in Q1 2017

In Q1 2017 the Latvian unemployment rate constituted 9.4 %. Compared to the previous quarter, the unemployment rate increased by 0.1 percentage points, whereas, compared to the same period of the year before, the rate reduced by 0.9 percentage points.

Pension expert: how far can index funds root themselves in Latvian pension plans?

Latvian pension plan clients can still pick existing pension plans with sufficiently flexible deposit policy and possibilities to receive consultations. It should be added, however, that pension plans based on index funds can find clients in Latvia for whom low-price guarantees is important the most, Nordea Pensions Latvia board member Ilya Arefjevs predicts.

Latvian Defence Ministry plans the largest tendering process in country’s history

This summer, Latvian Defence Ministry plans to announce the largest tendering procedure in the history of Latvia’s army. It is planned to procure heavy vehicles to transport armoured vehicles and troops. The total amount for the next ten years may reach EUR 200 million, as reported by Nekā personīga.

Study: engaging in business improves satisfaction with life

It has been concluded that psychological aspects are far more important than financial aspects in business operations – stability, family support, exchange of experience and realization of ideas are important for emerging businessmen, as concluded in a study performed by Altum.

Following use of EU funds, demand for loans increases in municipalities

Demand for loans from the State Treasury has increased after use of EU funds became more active, said Kaspars Abolins, chief of State Treasury, in an interview.

Swiss voters decide to move away from nuclear energy

Switzerland has decided to quit nuclear power stations and opt for renewable energy, show the results of a referendum held on Sunday, May 21, where 58% voters backed phasing out nuclear power.

Child vaccination made mandatory in Italy

Reacting to lower child protection against measles, the government of Italy has decided to make vaccination against 12 illnesses mandatory for children before they start going to state schools.

Deputies to decide on prohibiting gambling in Riga’s historic centre

On Monday, 22 May, deputies will discuss the matter on sorting out Riga’s historic centre. It is stated in new territorial plans that it will be prohibited for gambling halls to be located in this area.

Week in Lithuania. Lithuania to start paying child money in 2018

Lithuanian Prime Minister Saulius Skvernelis says that the government will follow up on its plan to next year start paying a monthly benefit for each child regardless of their parents' income, but adds that the state cannot afford to pay more than 30 to 50 euros in so-called «child money».

BNN summary of the week: problems with state financial accounts Baltics to promote healthy eating

BNN offers a summary of this week’s topical news in a variety of categories: Business; Future; Decline; Truth and Growth.

Specialists: noxious smoke from the fire claims more lives than the flames

The biggest damages during a fire are caused by flames, whereas noxious smoke from the fire kills more people, as noted by firefighting specialists.

FVS uncovered illegal sheep meat product trade

Inspecting an advertisement published on Facebook, Latvian Food and Veterinary Service uncovered illegal trade of sheep meat, canned meat storage and meat product distribution organized in an office building on Selpils Street, Riga, as reported by SRS.

Municipal elections 2017: what do people say?

With municipal elections gradually coming close, BNN offers a compilation of opinions provided by experts from different industries. Short answers consist of thoughts about specific municipalities that affect respondents directly, and municipal administrations in general – what people expect from officials and what changes they expect from elections.

Sweden decides to drop Wikileaks Assange arrest warrant

Prosecutors in Sweden have made the decision to quit the investigation in the case, where the founder of classified document leaking organisation Wikileaks, Julian Assange, is charged with rape and to drop the European arrest warrant on him.

Vejonis: we have yet to assess the use of funding in healthcare

In his interview to 900 seconds, Latvian President Raimonds Vejonis said the level of competent use of funding in the country’s healthcare sector has yet to be properly assessed.

ST: changes to Latvia’s credit rating associated with GDP growth

The possibility of Latvia’s credit rating growing is directly tied to gross domestic product growth, admits State Treasury manager Kaspars Abolins.

War games start in Estonian large-scale military drill with allied units

The military drill of the annual Estonian Defence Forces entitled Spring Storm has entered its key stage of a week of imitated battles, where units of other NATO member states and partner states are to take part.

EP tells member states to speed up refugee resettlement; especially children

European Union member states have to fulfil their promises to resettle asylum seekers from Greece and Italy. This especially applies to children, as stated in European Parliament’s resolution approved 19 May.

Total costs of reconstruction of Mezaparks Grand Stage may reach EUR 77 million

The estimated costs for the reconstruction of Mezaparks Grand Stage may reach EUR 77 million, as announced by Riga City Council’s Property Department Direction Olegs Baburovs at the first meeting of the Song and Dance Celebration Council.

Greece passes further austerity measures to receive next bailout payment

The parliament of Greece has adopted a further set of austerity measures, which are necessary to ensure the next bailout instalment worth several billion euros.