In the 4th quarter of 2008 gross domestic product has decreased by 10.3%
Compared to the fourth quarter of 2007 gross domestic product (GDP) in the fourth quarter of 2008 has decreased by 10.3%,* according to the data of the Central Statistical Bureau of Latvia. But in 2008 GDP volume if compared to the previous year has reduced by 4.6%.
The decrease in GDP was due to the drop in the following activities: trade (share in GDP structure – 15.6%) - by 17.2%, transport and communications (10.1%) – by 2.0%, manufacturing (9.2%) – by 11.5% and construction (9.2%) – by 10.9%. Large volume decrease was also observed in financial intermediation (6.4%) – by 18.0%.
Compared to the 4th quarter of 2007 in 4th quarter of 2008 (at current prices) in final private consumption expenditure on housing, water and electricity has grown by 38.3%, but expenditure on hotels, catering services has diminished by 27.1%, on clothing and footwear - by 25.7%, on food - by 16.1%, on recreation and culture - by 10%.
Decrease in private final consumption at constant prices was caused by purchase volume reduction, but gross capital formation was influencedby decrease of non-financial investments by 17%. Total reduction of export of goods and services was influenced by decrease of the export of goods by 8.9% (constituting 64.4% of total export) and decrease of export of services by 0.6%. Total volume of imports of goods and services has reduced, and that may be explained with the decrease of imports of goods by 20.3% (constituting 82.8 % of total imports) and reduction of the imports of services by 22.8%.
Prepared by National Accounts Section