In the 2nd quarter Gross Domestic Product increased by 2.3%

30.09.2014

Data compiled by the Central Statistical Bureau show that Gross Domestic Product (GDP) at current prices in the 2nd quarter of 2014 was 5.9 bln euros.

According to seasonally non-adjusted data, in the 2nd quarter of 2014, compared to the 2nd quarter of 2013, GDP at constant prices has grown by 2.3%, but, according to seasonally adjusted data, compared to the 1st quarter of 2014, it has risen by 0.9%.

The calculations were carried out according to the new European System of Accounts (ESA 2010) methodology.

Changes of GDP volume, 1st quarter 2012 - 2nd quarter 2014
 (at constant prices, %)

Data source: Central Statistical Bureau of Latvia

Production approach

In the 2nd quarter of 2014, as compared to the 2nd quarter of 2013,manufacturing rate at constant prices has grown by 0.1%, which was affected by 7.2% increase in manufacture of wood and of products of wood (26.3% of total manufacturing) and 3.9% increase in  manufacture of food products (18.8% of total manufacturing). Manufacture of wearing apparel has reduced by 18.0% (2.6% of total manufacturing) and manufacture of beverages – by 17.0% (2.3% of total manufacturing).

Construction has gone up by 15.8%. Construction of residential buildings has grown by 67.3% (14.4% of total construction), construction of office buildings – by 18.0% (7.1% of total construction) and construction of industrial buildings and warehouses – by 30.4% (6.0% of total construction). Construction of highways, streets, roads, airfield runways, railways witnessed drop of 2.4% (19.3% of total construction).

Retail trade grew by 4.3%, of which retail sale of automotive fuel – by 6.1%. Trade of food products rose by 5.9% and trade of non-food products – by 3.4%.

In transport sector freight transport by road grew by 11%.

In accommodation and food service activities there was an increase of 6.5% and 6.0%.  Activity of travel agencies has gone up by 4.4%.

Rise in entertainment and recreation sector comprised 12.2%, but in gambling and betting sector – 19.7%.

Changes of GDP in the 2nd quarter of 2014 by kind of economic activity

at constant prices, % over 2nd quarter of 2013

NACE Rev. 2 activities

Data source: Central Statistical Bureau of Latvia

agriculture, forestry and fishing (A)

4.0

Structure of activities at current prices, %

manufacturing (C)

12.8

other industry (BDE)

3.6

construction (F)

6.5

trade (G)

13.4

transportation and storage (H)

9.8

accommodation and food service activities (I)

1.7

information and communication (J)

4.5

financial and insurance activities (K)

3.8

real estate activities (L)

12.9

commercial services (MNS)

9.2

public administration and defence; compulsory social security (O)

7.4

education (P)

5.0

human health and social work activities (Q)

3.3

arts, entertainment and recreation (R)

2.1

(D.21-D.31) taxes on products minus subsidies on products

x

Expenditure approach

In the 2nd quarter of 2014, compared to the 2nd quarter of 2013,private final consumption at current prices grew by 2.8 %. Rise was observed within two main groups of consumption expenditure: food (19% of total expenditure) – of 6.0% and transport (11% of total expenditure) – of 2.0%. Households' expenditure on housing, which comprises 23% of total expenditure remained at the level of the previous year. Gross fixed capital formation increased by 1.4%. Export of goods (72% of total exports) has risen by 1.4%, but exports of services – reduced by 2.5%. Volume of imports of goods (86% of total imports) has risen by 2.6%, but imports of services – decreased by 5.4%.

Gross domestic product by main expenditure items

at current prices,% of the corresponding quarter of the previous year

at constant prices, % of the corresponding quarter of the previous year

Data source: Central Statistical Bureau of Latvia

Compared to the 2nd quarter of 2013,private final consumption in the 2nd quarter of 2014 at constant prices grew by 2.3%, of which expenditure on food – by 6.1%, but expenditure on transport – rose by 0.7%. Expenditure on housing decreased by 0.9%.

Expenditure on gross fixed capital formation increased by 1.8%. Volume of investment in public administration sector has grown by 18.0%, in manufacturing – by 32.1%. However, in general there was observed a 9.5% decrease of investment in industry.

Export of goods increased by 3.5%, but export of services – reduced by 2.8%. Import of goods went up by 3.7%, while import of services – dropped by 5.3%.

Changes of Gross Domestic Product in the Baltic Countries

(at constant prices, % of the corresponding period of the previous year)

Data source: Central Statistical Bureau of Latvia

Time series from the 1st quarter of 1995 to the 1st quarter of 2014 were recalculated in the CSB according to the European Parliament and Council Regulation (EU) No. 549/2013 on the changes in the European system of national and regional accounts in the European Union (ESA 2010) and other changes.

More information on the revision carried out can be found on the news release “Changes in the calculation of gross domestic product were carried out”.

More detailed information on the seasonally non-adjusted time series is available in the CSB database in section Gross Domestic Product.

More detailed seasonally adjusted time series will be published on 3 October this year in the CSB database in section Gross Domestic Product.

 

More information:
Elita Kalniņa
Quarterly National Accounts Section
Tel. +371 67366961