Latviski English По-русски
Wednesday 23.08.2017 | Name days: Valgudis, Ralfs, Vitālijs

Latvia's GDP grows 4.1% in 2013

(No Ratings Yet)

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.


Leave a reply

FCMC allows Latvian Central Depository to function as service provider

Finance and Capital Market Commission has decided to allow Latvian Central Depository to start providing services as a central securities depository starting from 18 September.

Without cheap labour, Liepaja prison construction may take a while

Because projects submitted by different construction companies for Liepaja prison exceed the funding that is available for the project, it is planned to cease the procurement. A new one will be announced soon, said Justice Ministry’s state secretary Raivis Kronbergs after a government meeting on Tuesday, 22 August.

Sudraba claims KNAB investigated oligarch case to the maximum extent

Investigators of the so-called oligarch case, which continue working at the Corruption Prevention and Combating Bureau, performed their work responsibly. Information leak during the investigation, on the other hand, had impacted the investigation considerably, said head of the parliamentary investigation committee Inguna Sudraba as a visit to KNAB.

Survey: 43% of internet store users purchase something once a month

Overall, Latvian consumers are satisfied with the purchases they made on internet stores. 65.3% of respondents believe internet stores are safe and reliable. 44.7% of respondents say they have never had any problems when shopping on the internet, according to results of a survey performed by

Government establishes prohibition to wear face-concealing clothes in public

On Tuesday, 22 August, Latvian government supported Justice Ministry’s proposed legislative draft on restrictions for face-concealing clothes, which prohibits residents from wearing such clothes in public places.

Experts explain why a teenager’s «I don’t know» is so dangerous

Most often we say things like «I don’t know» because we are afraid of making choices. Reaching their teens, youngsters become more independent, and the inability to make responsible decisions and say «no» can have serious consequences, says psychologist Sabine Vilcina and youth motivation programme «MOT. Izvēlies drosmi!» manager Ilze Paidere-Stake.

Traders: following VAT decline, prices of goods will decline as well

Latvian Association of Food Traders supports Agriculture Ministry’s proposal to reduce VAT rate for food and separate food product groups. Traders confirm that this step will also reduce food product prices in stores.

The most major risks and solutions for real estate purchase and rent with option to buy

To acquire housing in one’s property, often residents use rent with an option to buy. Sworn attorney Zanda Zaluma of Eversheds Sutherland Bitāns shares advice resident should keep in mind when signing real estate contracts.

Finance Minister: businessmen will be forced to pay larger wages

The current market situation shows that Latvia should speed up its education reform and think about attracting additional human resources from other countries, said Latvian Finance Minister Dana Reizniece-Ozola in an interview to Latvijas Radio.

Latvia to procure Stinger anti-air missile launchers

A mutual contract has been signed between Latvian Defence Ministry and Danish Defence Ministry for the procurement of anti-air missile launchers used by the Danish armed forces, as confirmed by Latvian Defence Ministry.

Oil prices and stock exchange indexes decline in Europe

On Monday, 21 August, oil prices declined. Exchange indexes in USA increased slightly, whereas exchange indexes in Europe declined because of concerns over the policy implemented by the administration of US President Donald Trump.

Terrorists in Barcelona were planning three explosions

Terrorists, who performed two attacks in Catalonia last week, were initially planning to blow up three shuttle buses in crowded areas in Barcelona, as reported by El Espano.

Lawyer: Maxima wants to earn by reducing compensations for the tragedy

Maxima Latvija and Zolitude 21.11 have reached an agreement on payment of EUR 900,000 to support victims of Zolitude tragedy – EUR 5,000 to EUR 75,000 to each person, as reported by Maxima Latvija.

Producer prices in industry in Latvia grew 0.4% in July

Compared to June, the level of producer prices in Latvian industry rose by 0.4 % in July 2017. The prices of products sold on the domestic market increased by 0.5 %, whereas the prices of exported products grew by 0.3 %.

Enefit: Latvia reduces electricity price difference with neighbouring countries

In recent years, Latvia has managed to reduce the electricity price difference with other Baltic neighbouring countries, as reported by Enefit Chairman Janis Bethers.

Farmers Saeima: butter price will not remain high for long

The high price on butter in Latvia will not remain so high for long, said Farmers Saeima Vice-Chairperson Maira Dzelzkaleja-Burmistre in an interview to 900 seconds programme of LNT.

Aseradens elected as chairman of Unity; Krisjanis Karins to lead party’s city council faction

Unity elected Economy Minister Arvils Aseradens as the new chairman of the party. MEP Krisjanis Karins has been elected as the party’s leader in Riga City Council with Santa Zarane as his deputy.

LPS manager: forming the budget, it is important for municipal funding to stay the same

In the formation process of the next year’s state budget, it is necessary to guarantee finances do not reduce for municipalities, said the chairman of Latvian Association of Local and Regional Governments Gints Kaminskis in an interview to Latvijas Radio.

Police to organize inspections in stores; parents asked to watch their children as well

For the new school year, Riga Municipal Police will be performing regular inspections at stores, bars and cafes from 21 August to 31 August, as well as the first days of September, to make sure minors are not sold alcohol and tobacco products, BNN was told by police.

Colder masses of air to enter Latvia this week; more rain expected

This week’s weather in Latvia will be dictated by a cyclone hovering above Northern Europe. Colder masses of air will flow into the country. A lot of rain is expected in Latvia this week, as reported by State Environment, Geology and Meteorology Centre.

Kirsis asks police to assess possible forging of votes at Riga City Council

Riga City Council’s Unity faction chairman Vilnis Kirsis has asked State Police to check if the city council’s electronic voting system was used without another deputy’s knowledge or consent, said the politician.

Expert: attack in Spain shows how terrorists switched to more easily reachable targets

Terrorist attacks that transpired in Spain this week shows how terrorists have switched to more easily reachable targets, where security requirements are not as strict, says Latvian National Defence Academy’s Security and Strategic Research Centre researcher Martins Hirss.

New mandatory tests in schools to be introduced four years from now

In four years’ time – 2021/2022 school year – it is planned to introduce completely new mandatory tests in schools, as reported by State Education Content Centre Director Guntars Catlaks.

Nearly 9,000 children and their parents got homes thanks to state support programme

In the first half-year of 2017, state support helped 1,527 families in Latvia to buy homes. Compared with last year, families’ demand for state support has grown 6%, as reported by Altum finance institute.

Prediction: Aseradens will likely take control over Unity

Economy Minister Arvils Aseradens will become the head of Unity, Betsafe bookmakers predict. The possibility of Aseradens becoming the head of the party is given 45% probability by Betsafe.