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Saturday 18.11.2017 | Name days: Doloresa, Aleksandrs

Latvia's GDP grows 4.1% in 2013

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn 2013, Gross Domestic Product (GDP) at current prices comprised EUR 23.3 billion (LVL 16.4 billion), but in Q4 of 2013 – EUR 6.3 billion (LVL 4.4 billion).

In 2013, as compared to 2012, GDP has increased by 4.1%, while in Q4 of 2013, in comparison with Q4 of 2012, it has grown by 3.6% (seasonally non-adjusted data).

According to seasonally adjusted data of the Central Statistical Bureau of Latvia, in Q4 of 2013, compared to Q3 of 2013, GDP volume has risen by 0.8%.

In Q4 of 2013, as compared to Q4 of 2012, manufacturing rate has grown by 2.6% (at constant prices); and that, in turn, facilitated rise in GDP rate by 0.3 percentage points. Rate changes were influenced also by 8% increase in manufacture of food products (20.9% of total manufacturing). Second largest manufacturing sector, manufacture of wood and of products of wood (20.8% of total manufacturing), rose by 9%, but manufacture of fabricated metal products (8.7% of total manufacturing) – by 3%. Manufacture of chemicals and chemical products has reduced by 17% (3.3% of total manufacturing). Manufacture of basic metals has decreased by 69%.

Construction has gone up by 3.9%. Construction of residential buildings has grown by 36.1% (11.5% of total construction), construction of main pipelines, communication and power lines – by 74.1% (8.6% of total construction), as well as construction of bridges and tunnels – by 42% (3.5% of total construction). Construction of highways, streets, roads, airfield runways, railways witnessed drop of 6.3% (21.1% of total construction), construction of industrial buildings and warehouses – of 3.7% (6.8% of total construction), as well as construction of local pipelines and cables – of 37.4% (5.5% of total construction).

Trade, which rose 1.7%, increased GDP by 0.3 percentage points, of which retail trade grew by 4%. Increase in retail trade was influenced by 6% growth in retail sale of food and by 3% increase in non-food products group, affected by reduction of retail sale of automotive fuel by 2% (share in non-food products group – 28%).

In commercial services sector the largest increase was observed among the following services: in accounting – by 35.4%, in travel agencies – by 10.4%, in hairdressing and other beauty treatment – by 8.3%, as well as in repair of computers and communication equipment – by 23.5%.

In the information and communication services sector the largest growth was on computer programming and consultancy services – by 9%.

Chargeable services in education sector rose by 14.5%, but in healthcare sector – by 9.8%.

Increase in gambling and betting sector – by 32.1%, but in sports and recreation activities – by 11.3%.

Taxes on products (Value Added Tax, Excise Duty, customs duties) were collected by 6.9% more; and that left 0.8 percentage point influence on GDP growth rate.

In Q4 of 2013, compared to Q4 of 2012, private final consumption at current prices grew by 5.8%. Rise was observed within the main groups of final consumption expenditure: housing maintenance (23% of total expenditure) – of 3.3%, food (19% of total expenditure) – of 7.8%, and transport (14% of total expenditure) – of 4.0%. Gross fixed capital formation reduced by 9.4%. Export of goods (73% of total exports) has dropped by 3.1%, but exports of services gone up by 6.5%. Volume of imports of goods (85% of total imports) has reduced by 3.5%, but imports of services – by 2.7%. Government final consumption grew by 0.1%.

Compared to Q4 of 2012, private final consumption in Q4 of 2013 at constant prices grew by 4.3%, of which expenditure on housing rose by 1%, but expenditure on food – by 4%, and expenditure on transport – by 6%. Increase of the private final consumption had a positive effect on the total GDP growth rate – of 2.6 percentage points.

Expenditure on gross fixed capital formation reduced by 10.3%. It was affected by the reduction of non-financial investment in public administration and defence; compulsory social security by 12.3%, but in transportation and storage sector – by 9.6%, which comprises 25.3% and 18.9%, respectively, to all non-financial investment. Volume of non-financial investment in the manufacturing dropped by 9.8% (10.5% of total non-financial investment). Gross fixed capital formation had a negative effect on the GDP – of 2.6 percentage points.

Government final consumption grew by 5.6%, which affected total GDP rate by 1 percentage point.

Export of goods dropped by 2.3%, but export of services increased by 6.7%. In its turn, import of goods decreased by 2.7%, while import of services – by 4.7%. Imports reduction had a positive impact on the GDP of 1.8 percentage points.


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