Latvia's GDP growth modest in second quarter

According to a flash estimate from the Central Statistical Bureau, in the second quarter of 2016, compared with the first quarter of 2016, seasonally adjusted Gross Domestic Product (GDP) increased by 0.4%, LSM reports.

Compared to the corresponding period of 2015, during the second quarter of 2016 seasonally and working days adjusted GDP grew by 0.7%, while seasonally and working days non-adjusted GDP increased by 2.1%.

The GDP changes were affected by a 7% increase in the added value of manufacturing and a 3% increase in retail trade, as well as a drop of 22% in the construction sector (seasonally and working days non-adjusted data).

Commenting on the data, Citadele bank economist Martins Abolins said: "The Latvian economy is continuing a low growth period and in the second quarter, the economy is likely to have slightly decelerated."

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