Latvia’s domestic retail growth volatile in August.

By bne IntelliNews September 30, 2013

Domestic retail trade at constant prices in Latvia increased by 2.1% y/y and declined by 0.4% m/m in August, according to the report by Central Statistical Bureau. Out of that retail trade gained 4.4% y/y in food and 0.7% y/y in non-food segment. In m/m terms food sales remained flat and non-food trade decreased by 0.6% m/m.

Previously, May-July retail trade data has put the indicator back on the stable upwards trend.  The Bank of Latvia economist Agnese Bicevska on comments that m/m decline on the indicator in August is in line with previous monthly fluctuations. At the same time, the central bank economist is optimistic on the confidence indicators both in Latvia and in Europe.

Previously, the CB reiterated that domestic demand cannot last forever as the main driver of growth without support of external demand. In this regard gradual improvement of the situation in Europe was seen positively by the CB.     

Retail trade gained 6.4% y/y in H1/13. This was slightly below the expectations of 6.5%-7.2% growth in BNS banking analysts’ survey.

In 2012 overall retail trade went up by 9.7% y/y vs. 4.6% y/y growth in 2011, 2.2% y/y decline seen in 2010 and 28% drop in 2009.

Related Articles

Latvia’s ABLV bank asks US authorities to stop sanctions procedure

Latvian lender ABLV has asked the US Financial Crimes Enforcement Network (FinCEN) not to go forward with sanctions against it for money laundering, the bank said on April 20. Latvia’s ... more

Lithuanian retail group Maxima Grupe to place €300mn-€400mn bond issue

Lithuanian retail giant Maxima Grupe is planning a bond issue worth €300mn-€400mn in order to diversify financing and reduce its dependence on borrowing from banks, Lithuanian ... more

Latvia to probe tram tender awarded to Russian-controlled Railvec

Latvia’s state security service, the Constitution Protection Bureau (SAB), plans to scrutinise a tender to deliver trams to the country’s second-largest city won by a Russian company with ties to ... more