bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Saturday 21.01.2017 | Name days: Agne, Agnese, Agnija
LatviaLatvia

Latvia’s GDP increases by 0.6%

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn Q2 2016, as compared to Q1, gross domestic product at constant prices, according to seasonally and calendar adjusted data, increased by 0.6%. In Q2 this year, as compared to the corresponding period of 2015, GDP grew by 0.8% according to seasonally and calendar adjusted data and by 2.1%.

In Q2, GDP at current prices amounted to EUR 6.3 billion, whereas at constant prices – to EUR 5.4 billion.

Compared to Q2 2015, the manufacturing sector grew by 7.2% in Q2 2016. Growth was recorded in all of the largest manufacturing sub-sectors: in manufacture of wood and of products of wood – of 11%, in manufacture of food products – of 1%, in manufacture of fabricated metal products – of 19%, in manufacture of other non-metallic mineral products – of 8%, in manufacture of computer, electronic and optical products – of 26%, and in repair and installation of machinery and equipment – of 13%.  In turn, a drop in industrial production output was recorded in manufacture of chemicals and chemical products (of 5%) and in manufacture of electrical equipment (of 4%), according to data from the Central Statistical Bureau of Latvia.

In Q2 2016, as compared to the corresponding quarter of the previous year, the construction production volume decreased by 19%. Construction volume dropped by 10% in the segment of non-residential buildings (a share of 42% of the total construction production volume), whereas the construction of residential buildings indicated growth of 10% (a share of 18%). The largest drop (of 34%) was observed in the construction of civil engineering structures (a share of 40 % of the total construction production volume), including the construction of harbours, dams and other water works – of 49%, construction of bridges and tunnels – of 41%, as well as in the construction of highways, streets and roads, airfield runways, and railways – of 33%. In turn, growth was recorded in the construction of main pipelines, communication and electricity lines – of 34%, as well as in the construction of local pipelines and cables – of 13%.

The 0.1% drop in the value added of the manufacturing sector did not have a significant impact on the overall GDP growth rate.

The value added in service sectors grew by 1.7%, having a positive impact on GDP growth in the amount of 1.1% percentage points.

Retail trade grew by 3% in Q2 2016, of which retail trade in food products – by 0.1%, and retail trade in non-food products – by 5%. Wholesale increased by 8% during the respective period.

In Q2 2016, as compared to Q2 2015, the transportation and storage sector grew by 3%. Passenger transport decreased by 1% and freight transport dropped by 2%, whereas growth was recorded in postal and courier activities – of 11%, as well as in warehousing and support activities for transportation – of 8%.

The volume of entertainment and recreation services increased by 4%, including growth of 3% in the gambling and betting sector, as well as an increase of 10% in creative, arts and entertainment activities.

GDP growth was facilitated by taxes on products, which grew by 8% in Q2 2016 in comparison to the corresponding period of the previous year, forming 1 percentage point of total GDP growth.

In Q2 2016, final consumption expenditure rose by 3 %. That was facilitated by a 4% increase in private final consumption, where household expenditure on food grew by 5%, expenditure on transport (expenditure on public transport, purchase and exploitation of transport vehicles) – by 9%, on recreation and culture – by 5%, whereas expenditure on housing decreased by 0.4%. Final consumption of households was affected by both the drop in prices (mostly on transport and housing), as well as the increase in the income of households. Government final consumption has remained at the level of the previous year.

Gross fixed capital formation decreased rapidly already for the second quarter in a row, which dropped by 26% in Q2 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 17%, in intellectual property – by 29%, whereas in dwellings and other buildings and structures – by 33%.  In Q2 2016, the most amount of money was invested in the transportation and storage sector (17% of the total investments) and in the public administration and defence, compulsory social security sector (14%), which was still 38% and 40% less than a year before, respectively. Investments in the electricity, gas, steam and air conditioning supply sector grew by 24%.

In Q2, exports of goods and services have grown by 4%, whereas imports – by 7%. The growth in exports had a positive impact on GDP in the amount of 2.2 percentage points, whereas imports decreased the total GDP by 4 percentage points.

Ref: 102.109.109.5788


Leave a reply

Expert: «Lithuania’s renewed National Security Strategy is a «hodgepodge»

This week, the Lithuanian Parliament has overwhelmingly approved a renewed National Security Strategy, laying out 14 major hazards and risk factors to national security.

Industry: advertisements contribute the entire economy of the European Union

Every euro invested in advertisement has seven times the influence on a country’s GDP. Every one euro brings seven euros in return to the country’s GDP, as emphasized by Latvian Advertising Association, noting that advertisement sector contributes to employment in all of the European Union.

Six deputies applied with administrative penalties in Saeima’s autumn session

According to information provided to the parliament, six deputies were applied with administrative penalties during Saeima’s autumn session.

Slower economic growth for Estonia forecast – at 2.2% - for 2017

The economic growth of Estonia in 2017 will be slower than previously expected, Swedbank economists have announced lowering their previous economic forecast for the Baltic country by 0.2% to 2.2%.

Latvian and Lithuanian authorities dismantle two criminal groups

Latvian State Revenue Service’s Finance Police has successfully apprehended two organized crime groups that caused significant damage to the state budget in 2015 and 2016 by realizing different VAT fraud schemes.

Estonia to drop special pensions, push forward sweeping pension reforms

The Estonian government has decided to drop special pensions and to push forward with plans regarding other significant changes in the pension system, including tying the retirement age to the average life expectancy.

KNAB performs inspection about Jakrins’ approval in the board of Rīgas satiksme

Corruption Prevention and Combating Bureau intends to inspect if the approval of acting head of Riga City Council’s Transport Department Emils Jakrins in the management board of Rīgas satiksme had any signs of breach of good management principles.

Chinese GDP up 6.7% in 2016

World’s second largest economy has seen a 6.7% growth in 2016, Chinese official data show, which indicate that the gross-domestic-product increase has been slower than the 6.9% seen in 2015 and the slowest since 1990.

Dozens buried in Italy’s avalanche-stricken hotel

Italy has been shaken by a number of earthquakes this week, one of which has triggered an avalanche burying a mountain hotel, where at least two people have been found dead and dozens more a searched for through rubble and snow.

Weekends to experience frost and thaw; drivers urged to be careful

Weather in Latvia will not be stable in the next couple of days – cloudy weather with some precipitation will be mixed with periods of clear sky, according to State Environmental, Geology and Meteorology Centre.

Logistics Industry Council assesses results of 16+1 summit

Experts say container cargoes have the potential to bring major contribution to the logistics sector. With that, LDz Logistics intends to continue organizing the next container train from China, as well as cooperate with partners from Belarus and China in the context of the Great Stone industrial park, as BNN was informed by Transport Ministry’s representative Ilze Greiskalna.

Parliament supports amendments to avoid expensive land-measuring actions

It will no longer be necessary to prepare land border plan for entry of land units in the Land Book. It will help save budget funds, as it will not be necessary to perform land-measuring actions, as reported by Saeima press-service.

CP supervisors concerned about Latvijas Gāze’s contract terms

The Competition Council is concerned about Latvijas Gāze’s behaviour in the process of liberalization of the country’s gas market. Economy Ministry has submitted a draft of the Gas Trade and Use Rules to the Cabinet of Ministers Committee for review.

Germany seeks clarity from Trump’s government, to boost military spending

Berlin has emphasised plans to increase defence spending after facing criticism from upcoming U.S. President Donald Trump on NATO countries not meeting their spending commitments.

Saeima re-elects Elita Krumina as State Auditor

On Thursday, 19 January, the Saeima re-elected Elita Krumina in the post of State Auditor.

Saeima supports formation of aircraft passenger data registry to combat terrorism

On Thursday, 19 January, Latvia’s Saeima approved the Aircraft Passenger Data Processing Law in the final reading. This will form the passenger data registry.

Milk retail price in Estonia reaches 55 cents per litre after to price hikes

After a long period of low milk purchase prices in Estonia, milk retail prices in the Baltic country have increased twice, reaching the point where famers receive just enough to cover milk production costs.

Ventspils Freeport carries Lembergs around with luxurious car worth EUR 156,000

In spite of a 16.44% turnover decline, Ventspils Freeport bought a lux-class Audi A8L W12 for EUR 156,000 last year. It’s only known passenger so far has been the formally suspended chairman of Ventspils City Council Aivars Lembergs, as reported by Latvijas Avīze.

Estonia concludes bilateral defence framework deal with Finland

Estonia and Finland have signed a bilateral defence cooperation framework agreement aiming for closer and more regular cooperation in the field by the neighbouring countries.

Biden: Wealthiest 1% does not pay enough in taxes

The «top 1% is not carrying their weight», outgoing U.S. vice-president, Joe Biden evaluated at the World Economic Forum, insisting the world's wealthiest that they do not pay enough in taxes.

Latvia and Japan sign convention on attraction of foreign investments

In Tokyo, Latvian Finance Minister Dana Reizniece-Ozola and Japanese Foreign Ministry’s Parliamentary Vice-Minister Motome Takisawa signed a convention between the two countries on double taxation prevention for income tax.

FM: problems with real estate tax cannot be resolved with tax rate corridor

Real estate tax benefits for housing area could be applied for each person declared living in each respective house. Each benefit can be applied to the building and land, Finance Ministry’s representative Aleksis Jarockis reported on conclusions made by the work group responsible for amendments.

Turkey’s New Year’s terrorist admits choosing nightclub randomly

The main suspect of the attack in Istanbul, which left 39 people dead during New Year’s celebrations, had selected randomly the place of attack.

WhatsApp to be provided with bank-contacting functionality

Continuing the digitization process and studying customer habits more intently, it is planned to allow customers resolve matters related to finances using WhatsApp, DNB Bank reports.

U.S. commutes sentence of classified-document-leaker Manning

U.S. President Barack Obama has commuted the sentence of the former U.S. soldier Chelsea Manning, found guilty of stealing and leaking a vast material of classified material to transparency organisations.

When do you pay fines for speeding?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: