In the 3rd quarter of 2015 Gross Domestic Product rose by 1.0%

30.11.2015

Data compiled by the Central Statistical Bureau (CSB) show that in the 3rd quarter of 2015, compared with the 2nd quarter of 2015, Gross Domestic Product (GDP) at constant prices, according to seasonally adjusted data increased by 1.0%. In the 3rd quarter of 2015 Gross Domestic Product at current prices was 6.4 bln euros.

In the 3rd quarter of 2015 as compared with the corresponding period of 2014, GDP grew by 3.3% according to both - seasonally adjusted, as well as seasonally unadjusted data. It is 0.8 percentage points more than it was reported in the GDP flash estimate, based on the cautious forecasts of entrepreneurs (especially in the construction and services sectors). 

Changes of GDP volume (at constant prices, as %)

Data source: Central Statistical Bureau of Latvia

Production approach (seasonally unadjusted data, at constant prices)

In the 3rd quarter of 2015, compared with the 3rd quarter of 2014, GDP growth was promoted by the significant sectors of the economy: manufacturing, construction, trade, and real estate activities. The growth of 3.7% in industry was promoted by growth of 6% in manufacture of wood and of products of wood, of 27% - in manufacture of computer, electronic and optical products, of 17% - in manufacture of furniture. In turn, drop was recorded in manufacture of food products- of 2%, in manufacture of other non-metallic mineral products - of 9%, as well as in manufacture of fabricated metal products - of 10%.

Construction production volume increased by 4.9%. Growth of 15% was observed in construction of civil engineering structures, which accounts for 56% of the total construction volume. It was promoted by growth of 15% in construction of highways, streets, roads, airfields and railways, as well as by increase of 56% in construction of local pipelines and cables. Construction of residential buildings increased by 2%. In turn, construction of main pipelines, communications and power transmission lines dropped by 7%.

In trade growth was recorded both - in wholesale - of 6%, and retail trade - of 5%; of which retail sale of automotive fuel grew by 6%, wholesale and retail trade of motor vehicles and motorcycles - by 11%. There was a 3% increase in retail trade of food products and 6% increase – in retail  trade of non-food products.

Development of real estate sector was promoted by growth of 11% in lease and management of real estate.

Development of transport sector was facilitated by growth of 4% in passenger transportation, as well as by increase of 8% in freight turnover. In storage and supporting and auxiliary transport activities there was a decrease of 4%.

In accommodation and food service activities there was an increase of 4% and 10%.

Volume of entertainment and recreation services increased by 5.7%, of which in gambling and betting sector there was a rise of 9%. Decrease of 1% was observed in sporting activities.

GDP growth was also promoted by product taxes, which witnessed 5.9% increase.

Changes of GDP in the 3rd quarter of 2015 by kind of economic activity

At constant prices, % over the 3rd quarter of 2014

Sectors according to NACE Rev.2

Share of sectors in value added, as %

Data source: Central Statistical Bureau of Latvia

Agriculture, forestry and fishing (A)

3.9

Manufacturing (C)

11.9

Other industry (BDE)

3.5

Construction (F)

8.5

Trade (G)

14.7

Transportation and storage (H)

9.7

Accommodation and food service activities (I)

2.3

Information and communication (J)

4.5

Financial and insurance activities (K)

4.4

Real estate activities (L)

12.1

Commercial services (MNS)

8.4

Public administration and defence, compulsory social security (O)

6.7

Education (P)

4.4

Health and social work (Q)

2.9

Arts, entertainment and recreation (R)

2.1

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

 

x

Expenditure approach (seasonally unadjusted data)

In the 3rd quarter of 2015, compared with the 3rd quarter of 2014, private final consumption at current prices grew by 5%. Households' expenditure on transport (expenditure on public transport, purchase and exploitation of transport vehicles) in private final consumption rose by 8%, expenditure on recreation and culture – by 9%, on housing - by 1%, and expenditure on food increased by 2%.

At constant prices expenditure on transport in private final consumption grew by 13%, as 40% of all households' expenditure on transport was formed by expenditure on fuel, the price of which decreased. Households spent 9% more on recreation and culture, and 4% more on food; in turn, expenditure on housing remained at the level of the previous year.

Government final consumption at current prices increased by 6%, and at constant prices – by 4%.

Gross fixed capital formation at current prices, as well as at constant prices increased by 6%. Non-financial investment in transport and storage sector grew by 51%, and in manufacturing - by 4%. In turn, in public administration and defence, compulsory social security sector non-financial investment decreased by 12%.

Export of goods both at current prices and constant prices increased by 1%. Export of services at current prices increased by 4%, and at constant prices – by 2%.

Import of goods at current prices increased by 1%, and at constant prices - by 6%; it was related to decrease in import prices of coke and oils products, computers, electrical and optical equipment, as well as in import of motor vehicles, trailers and semi-trailers. Import of services at current prices increased by 4%, but at constant prices decreased by 1%.

Gross Domestic Product by main expenditure item at constant prices
(% of the corresponding quarter of the previous year)

Data source: Central Statistical Bureau of Latvia

 

Changes of Gross Domestic Product in the Baltic Countries

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

*Flash estimate data for the 3rd quarter of 2015

Possible changes in calculations of government sector, balance of payments and sectors of financial services, as well as services producer indices will be taken into account in GDP calculations and balancing of quarterly national accounts on the 85th day after the reference quarter. More information will be available in the CSB database on 23 December.

More information on GDP is available in the CSB database section Gross Domestic Product.

 

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