GDP has grown by 2.0 % in 2016 and by 2.6 % in the 4th quarter

28.02.2017

Data compiled by the Central Statistical Bureau (CSB) show that in 2016, as compared to 2015, Gross Domestic Product (GDP) increased by 2.0 %. In 2016, GDP at current prices amounted to EUR 25 bln, whereas at constant prices to EUR 21.8 bln.

In the 4th quarter of 2016, as compared to the 3rd quarter, GDP at constant prices grew by 1.1 % (according to seasonally adjusted data). In the 4th quarter of 2016, compared to the corresponding period of 2015, GDP grew by 2.2 % according to seasonally adjusted data, and by 2.6 % – according to seasonally non-adjusted data.

In the 4th quarter, GDP at current prices amounted to EUR 6.7 bln, whereas at constant prices of 2010 – to EUR 5.9 bln.

Changes of GDP volume

 

Million euros, seasonally non-adjusted

Changes as %, at constant prices of 2010

Period

at current prices

at constant prices of 2010

compared to the previous period, seasonally and calendar adjusted

compared to the corresponding period of the previous year, seasonally and calendar non-adjusted

2015*

24 368.3

21 364.1

2.6

2.7

Q1

5 423.9

4 711.4

0.9

1.8

Q2

6 067.1

5 332.4

1.1

2.8

Q3

6 408.2

5 591.7

0.8

3.5

Q4

6 469.1

5 728.6

-0.5

2.7

2016*

25 018.2

21 781.5

1.3

2.0

Q1

5 506.7

4 826.7

0.2

2.4

Q2

6 308.8

5 454.3

0.6

2.3

Q3

6 466.8

5 620.1

0.3

0.5

Q4

6 736.0

5 880.4

1.1

2.6

* Data on 2015 and the first three quarters of 2016 have been revised

 

Production approach

2016 compared to 2015 (non-adjusted data, at constant prices)

The manufacturing sector grew by 6 %, of which manufacture of wood and of products of wood – by 8 %, manufacture of computer, electronic and optical products – by 16 %, manufacture of fabricated metal products – by 9 %, and manufacture of food products – by 1 %.

The electricity, gas, steam and air conditioning supply sector experienced growth in the amount of 7 %, of which electric power generation, transmission and distribution increased by6 %.

Production volumes in agriculture decreased by 3 %, with a 5 % drop experienced in crop production, while animal production remained at the level of the previous year.

The forestry and logging sector witnessed growth in the amount of 3 %. The sector experienced reduction in prices.

There was a 38 % increase in total fish catch, however, the fish catch in the Baltic Sea and Gulf of Riga dropped by 3 %.

Construction production volume decreased by 18 %. A drop of 4 % could be observed in the construction of non-residential buildings, and a drop of 33 % was recorded in the construction of civil engineering structures (including motorways, streets and roads). Construction of residential buildings grew by 2 %.

Retail trade increased by 2 %, of which retail sale of automotive fuel – by 2 %, and trade in non-food products – by 5 %.

Wholesale has gone up by 4 %.

The transport sector grew by 0.5 %. Passenger traffic increased by 4 %, whereas freight traffic dropped by 7 %.

Growth of 9 % was recorded in accommodation and food service activities, of which 11 % in accommodation services and 7 % in food services.

Information and communication services were provided at a volume that was 3 % higher than that of 2015.

The finance and insurance sector experienced growth of 3.5 %, which was facilitated by successful work of banks and insurers.

Operations with real estate have remained at the level of the previous year.

The volume of arts, entertainment and recreation services increased by 3 %, with gambling and betting activities growing by 5 %, creative and arts activities – by 6 %, and sports activities experiencing a drop of 4 %.

Public administration and defence grew by 4 %, education – by 1 %, and health sector – by 2 %.

The volume of taxes (excise, value added and customs taxes) on products increased by 6 %.

 

Changes of GDP in the 4th quarter of 2016 by kind of economic activity

At constant prices, % compared to the 4th quarter of 2015

Sectors according to NACE Rev.2

Share of sectors in value added, as %

Agriculture, forestry and fishing (A)

2.5

Manufacturing (C)

12.5

Other industry (BDE)

4.5

Construction (F)

5.9

Trade (G)

13.7

Transportation and storage (H)

9.0

Accommodation and food service activities (I)

1.7

Information and communication (J)

5.1

Financial and insurance activities (K)

5.5

Real estate activities (L)

12.2

Commercial services (MNS)

8.4

Public administration and defence, compulsory social security (O)

8.0

Education (P)

5.3

Health and social work (Q)

3.5

Arts, entertainment and recreation (R)

2.2

 

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

 

x

 

GDP growth in the 4th quarter of 2016 was mainly facilitated by the successful development of industrial sectors (growth of 10 %) and the increase in the amount of services provided (of 2 %).

 

Expenditure approach

2016 compared to 2015 (non-adjusted data, at constant prices)

In 2016, final consumption of households increased by 3 %, of which expenditure on food increased by 1 %, on transport (expenditure on public transport, purchase and exploitation of transport vehicles) – by 6 %, and on recreation and culture – by 3 %. Expenditure on housing dropped by 1 %, as a decrease was observed in the expenditure on electricity, gas and other fuel, and less was also spent on household maintenance and repairs. The increase in final consumption of households was facilitated by growth in the income of population, as well as stability of consumer prices.

Government final consumption grew by 3 %.

Gross fixed capital formation reduced by 11 %. Investments in equipment and machinery dropped by 1 %, in intellectual property and cultivated assets – by 21 %, while investments in construction decreased by 18 %.

Exports grew by 4 %, of which exports of goods – by 2 % (the goods that were exported the most were electrical machinery and equipment, machinery and mechanical appliances, as well as sawn wood). The increase in the exports of transport, IT and construction services facilitated 4 % growth of the total exports of services.

Import volumes have grown by 2 %. Imports of goods increased by 5 % due to growth in the imports of passenger cars and pharmaceutical products, however, a negative impact was caused by imports of electrical machinery and equipment, machinery and mechanical appliances, as well as diesel fuel. Imports of services grew by 2 %. The services that were imported the most were ones related to transport, tourism and trade.

.

Changes of GDP in the 4th quarter of 2016 by kind of expenditure

At constant prices, % compared to the 4th quarter of 2015

ESA 2010 codes

Share, %

Final consumption expenditure (P.3)

76.5

..Final consumption expenditure of households and non-profit institutions serving households P.3 (S.14; S.15)

57.7

..Government final consumption expenditure P 3 (S.13)

18.8

Gross capital formation (P.5)

22.2

..Gross fixed capital formation (P.51)

22.0

Exports of goods and services (P.6)

58.3

(-) Imports of goods and services (P.7)

57.0

   

The GDP increase in the 4th quarter of 2016 was based on final consumption expenditure and amounted to 2.9 percentage points of the total GDP. The GDP was affected negatively by gross capital formation and the balance of exports and imports in the amount of 0.1 and 0.2 percentage points, respectively.   

Changes of Gross Domestic Product in the Baltic Countries
(at constant prices, seasonally and calendar non-adjusted, % of the corresponding period of the previous year)

*Data of the first assessment for 2016 and 4th quarter of 2016.

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 24 March.

GDP data for 2011–2014 were revised in relation with updates in the calculation methodology and information used in the calculations. The volumes of changes at current prices amounted to 0.1–0.2 %. More information on changes is available here.

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

 

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