Press Release

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%.

Production approach

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%.

Expenditure approach

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

Tel. 67366671

Alla Vanaga

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