In the 4th quarter, Gross Domestic Product has increased by 3.6%, in 2013 – by 4.1%

11.03.2014

Data compiled by the Central Statistical Bureau of Latvia indicate that, in 2013, Gross Domestic Product (GDP) at current prices comprised EUR 23.3 billion (LVL 16.4 billion), but in the 4th quarter of 2013 – EUR 6.3 billion (LVL 4.4 billion).

In 2013, as compared to 2012, GDP has increased by 4.1%, while in the 4th quarter of 2013, in comparison with the 4th quarter of 2012, it has grown by 3.6% (seasonally non-adjusted data).

According to seasonally adjusted data, in the 4th quarter of 2013, compared to the 3rd quarter of 2013, GDP volume has risen by 0.8%.

Changes of GDP volume, 1st quarter 2011 - 4th quarter 2013
 (at constant prices, %)

Production approach

In the 4th quarter of 2013, as compared to the 4th quarter 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.

Changes of GDP in the 4th quarter of 2013 by kind of economic activity

at constant prices, % over 4th quarter of 2012

NACE Rev. 2 activities

agriculture, forestry and fishing (A);

4.0

Structure of activities at current prices, %

manufacturing (C);

13.5

other industry (BDE);

4.5

construction (F);

7.3

trade (G);

15.8

transportation and storage (H);

10.8

accommodation and food service activities (I);

1.6

information and communication (J);

4.5

financial and insurance activities (K);

3.6

real estate activities (L);

9.3

commercial services (MNS);

8.2

public administration and defence; compulsory social security (O);

7.9

education (P);

3.8

human health and social work activities (Q);

2.9

arts, entertainment and recreation (R);

2.2

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

x

Expenditure approach

In the 4th quarter of 2013, compared to the 4th quarter 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%. 

Gross domestic product by main expenditure items

at current prices, % over corresponding quarter of previous year

at constant prices, % over corresponding quarter of previous year

Compared to the 4th quarter of 2012, private final consumption in the 4th quarter 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.

Changes of Gross Domestic Product in the Baltic Countries

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

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