Latvia’s GDP increased 4.2% in Q1 2018

Q1 2018, compared to Q1 2017, the gross domestic product, based on seasonally and calendar non-adjusted data, increased by 4.2 %. In Q1 GDP at constant prices was EUR 6.32 billion.

As compared to the previous quarter, GDP, according to seasonally and calendar adjusted data, grew by 1.6 %.
 

In Q1 2018, compared to Q1 2017, forestry and logging increased by 22 %.
 

In Q1 2018, compared to Q1 2017, manufacturing rose by 2 %.  Significant growth was observed in manufacture of chemicals and chemical products – by 15 %, in manufacture of non-metallic mineral products – by 12 %, in manufacture of fabricated metal products, except machinery and equipment – by 10 %. Decrease, in turn, was observed in manufacture of computer, electronic and optical products – by3 %, according to data from the Central Statistical Bureau of Latvia.
 

In electricity, gas, steam and air conditioning supply manufacturing volume rose by 6 %, of which in production and distribution of electricity – by 2 % and in steam and air conditioning supply – by 13 %.
 

In Q1 2018, as compared to the corresponding period of the previous year, construction production volume rose by 36 %. Both buildings and engineering building were constructed more by 44 %, but specialised construction activities – more by 16 %. Increase was observed in all sub-sectors of civil engineering: construction of roads and railways (of 56 %), construction of utility projects (61 %), other civil engineering projects (8 %).
 

In Q1 2018, retail trade increased by 5 %, of which trade in food products – by 6 %, but trade in non-food products – by 4 %. Wholesale trade, retail trade and repair of motor vehicles and motorcycles rose by 3 %, but wholesale – by 1 %.
 

In transport and storage sector reduction of 1 % was promoted by decrease in freight transport by 7 %, drop in warehousing and support activities for transportation by 2 %. Rise, in turn, was observed in postal and courier activities – of 21 % and in passenger traffic – of 14 %.
 

Accommodation and catering services grew by 6 %, of which accommodation – by 11 %, catering – by 5 %.
 

Information and communication services grew by 5 %, including rise of 13 % in information services, of 10 % in telecommunication services and of 2 % in computer programming and consulting.
 

As volume of production dropped, financial and insurance activities shown increase of costs share, which determined reduction of 27 % along with price rise due to loses in financial instruments trading in contrast with profit of Q1 the last year, as well as due to a drop of 6 % in commissions from monetary financial institutions.
 

Professional, scientific and technical activities rose by 6 %, of which architectural, engineering, technical testing and analysis services – by 49 %, activities of head offices; management consultancy activities – by 3 %.
 

In Q1 2018 the volume of taxes on products (value added tax, excise and customs taxes) increased by 9 %.
 

Compared to the corresponding quarter of the previous year, household expenditure on food products rose by 6 %, on transport (public transport, purchase and exploitation of transport vehicles) – by 3 %, expenditure on recreation and culture – by 9 % in Q1 2018.
 

Government final consumption expenditure grew by 5 %.
 

Investment in the gross fixed capital formation grew by 19 %, excluding dwellings, other buildings and structures, also in intellectual property products (research, computer software, databases, copyrights, etc.) – by 4 %. Investment in machinery and equipment, of which in vehicles, reduced by 2 %.
 

In Q1 exports of goods and services rose by 2 %, of which exports of goods – by 5 %. Exports of services dropped by 5 %, which mainly was affected by decrease in exports of transport services.
 

Imports of goods and services, in turn, went up by 6 %. Imports of goods rose by 6 %, and mainly it was made up by import from the EU countries (75 %), mainly by food products, computers, electronic and optical products. Imports of services rose by 10 %.
 

Compared to Q1 2017, in Q1 2018 compensation of employees grew by 11 %, of which total wages and salaries – by 11 % and social security contributions by employees – by 13 %. This rise was promoted by wage and salary fund increase in manufacturing by 12 %, in construction sector – by 24 %, services sectors – by 9 %. Gross operating surplus and mixed income increased by 3 %, whereas the balance of taxes on production and imports and subsidies went up by 7 %.

BNN

 

Comment