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Sunday 25.02.2018 | Name days: Alma, Annemarija

Latvia's GDP grows by 5.6%

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Latvia’s Gross Domestic Product (GDP) in 2012 as compared to 2011 increased by 5.6%, while in the fourth quarter of 2012 as compared to the fourth quarter of 2011 – by 5.1%.

In its turn, seasonally adjusted data indicate that the GDP in Q4 of 2012 rose by 1.4%, as compared to Q3 of 2012, according to data from the Central Statistical Bureau of Latvia.

In 2012 the GDP changes were determined by increase in the following sectors:in trade (share in the GDP structure – 16.1%) – of 7.0%,manufacturing (14.5%) – of 9.3%, and transport and communications (12.1%) – of 4.0%. Construction sector (5%) witnessed a rise of 14.6%.

As compared to Q4 of 2011, the GDP changes in Q4 of 2012 were determined by growth in following sectors: in trade (share in the GDP structure – 16.3%) – of 8.8%,in manufacturing (13.5%) – of 6.2%, and in transport and communications (11.1%) – of 1.1%. Construction sector (7.4%) witnessed a rise of 9.3%.

In 2012 private final consumption at current prices grew by 8.6%. The most notable expenditure in private final consumption was recorded in housing maintenance (of 9.0%), food (6.0%) and transport (19.7%). Gross capital formation grew by 19.7%, import – by 10.1% and export – by 13.1%. In its turn, government final consumption dropped by 3.8%.

In the fourth quarter of 2012 as compared to the fourth quarter of 2011, private final consumption grew by 6.7%. Rise was recorded within the main groups of final consumption expenditure:on housing maintenance (25% of the total expenditure) – of 8.9%, on food (20%) – of 3.3%, and on transport (16%) – of 23.7%. Gross capital formation grew by 12.6%. Export of goods (73% of total exports) increased by 20.2% and exports of services – by 1.7%. Import of goods (84% of total imports) rose by 9.9%, while import of services decreased by 0.8%. In its turn, government final consumption declined by 2.2%.

Compared to Q4 of 2011, expenditure on private final consumption in Q4 of 2012 at constant prices grew by 4.2%, of which expenditure on housing rose by 3.2%, expenditure on food – by 2.4%, and expenditure on transport – by 18.8%. Increase of the private final consumption had a positive effect on the total GDP rise – of 2.8 percentage points.

Export of goods increased by 13.5%, whereas export of services dropped by 4.0%. Exports increased the GDP by 4.7 percentage points. In its turn, import of goods grew by 2.7%, while import of services decreased by 7.9%. Imports reduced the GDP by 0.7 percentage points.

In 2012 private final consumption purchase volume grew by 5.4%. Expenditure on gross capital formation rose by 12.3%, whereas government final consumption declined by 0.2%.

Export of goods (72.2% of total exports) increased by 9.8% and export of services – by 0.2%. In its turn, import of goods (83.6% of total imports) rose by 3.0% and import of services – by 3.1%.


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