GDP steady in second quarter

Compared to the 1st quarter of 2017, in the 2nd quarter Latvia's gross domestic product at constant prices increased by 1.2 % (according to revised, seasonally and calendar adjusted data), the Central Statistics Office (CSB) said August 31. 

Compared to the corresponding period of 2016, in the 2nd quarter of this year the GDP grew by 4.0 % according to seasonally and calendar non-adjusted data and by 4.8 % according to adjusted data.

The 4.0 % figure was revised downwards from initial estimates of 4.1 % growth, while the 4.8 % figure was in line with the initial estimate.

In the 2nd quarter, the GDP amounted to 6.8 billion euros at current prices and at 5.7 billion euros at constant prices.

the figures suggest Latvia is keeping pace with Lithuania in terms of growth but still lagging behind Estonia among the Baltic economies.

Changes of the DGP in the Baltic countries (at constant prices, seasonally and calendar non-adjusted, % of the corresponding period of the previous year)

Commenting on the figures, Swedbank said: "With respect to the GDP volume, the economy still has not reached the pre-crisis peak, but it is likely to happen in the second half of this year. Currently, there is no reason to talk about general overheating of the economy. The real estate market still has not seen a substantial pick-up in activity and the credit growth has been sluggish. However, the labor market tightening is a reason for concern. This and next year the economy will expand by about 4%. The growth will slow in 2019 as the world business cycle matures."

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