Latvia: GDP in Q3 up strongly
- GDP recovered by 7.1% QoQ, but was still down by 2.6% YoY in Q3 2020.
- Growth was boosted by strong recovery in private consumption and exports, albeit remaining under last year’s levels.
- Value added improved notably in catering and accommodation, as well as arts and recreation, but they still were the key sectors dragging GDP down.
The second reading of GDP figures was even more optimistic than the flash estimate.
Private consumption saw the strongest swings, but remained 7.3% down YoY. Exports rebounded solely due to excellent performance in goods, while services saw almost no improvement.
With the virus in Latvia unfortunately not under control, indicators point to decreasing activity in winter months. However, the economic situation is not as bleak as was observed in the first wave yet.
The positive Q3 data suggest that GDP is likely to contract by less than the previously projected 5% in 2020. The current virus surge means recovery in 2021 is to be more gradual (+3.1%).
For more information please contact Ms. Līva Zorgenfreija, +371 67445875, email@example.com
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