Latvia’s industrial output down by 0.4% y/y in June, manufacturing up by 0.8% y/y.

By bne IntelliNews August 5, 2013

Industrial output in June decreased by 0.4% y/y and 0.2% m/m in constant prices and seasonal adjusted terms, according to the report by the Central Statistical Agency. The decline of the indicator was mostly to lower supply of electricity and gas, which declined by 6.7% m/m and 7.1% y/y.

Manufacturing, at the same time, gained 1.2% m/m and 0.8% y/y. Mining and quarrying went up by 4.8% m/m and 14.2% y/y. In y/y terms manufacturing improved in food products (4.9% y/y), metals products (4.4% y/y), while same as in the previous months dropping by 72% y/y for basic metals.

May ended three previous consecutive months of y/y decline of industrial output, but the trend was back on negative in June. Y/y decline of the indicator was last seen in the end of 2009. Negative trend in manufacturing is still being supported by 10% m/m and 72% y/y drop in basic metals due to disruptions of output in the distressed Liepajas Metalurgs metallurgy producer.

Bank of Latvia economist Igors Kasjanovs on makroekonomika.lv welcomed the 1.2% m/m increase in manufacturing and reminded that manufacturing is growing for the third months in a row. The central bank still believes that other sectors will be able to compensate for the decline of the metals sector. EU confidence indicators also suggest that in the coming months slow manufacturing increase might continue.

In the mid-term the situation is still going to be dependent on the external environment, but long-term development will be based on capital investment and government policies. The CB economist notes that even should the external demand boom, currently there is not much excess capacity in Latvian industry without sufficient investment.

Previously CB believed that overall this year manufacturing and industrial output might decline y/y. To compare, in 2011 industrial output increased by 8.9% y/y amounting to LVL 4.76bn (EUR 6.77bn), in 2012 it increased by 6.2% y/y to LVL 5.295bn (EUR 7.53bn).

Related Articles

Latvia issues permits to new gas infrastructure holding

The Latvian Public Utilities Commission (SPRK) announced on January 5 that it has issued licences to Conexus Baltic Grid for the transmission and storage of gas. Conexus Baltic Grid will control ... more

Latvijas Gaze agrees to set up spin-off company to operate gas grid and storage

A shareholders' meeting at Latvijas Gaze (LG) decided on December 22 to set up a company that will be used to spin off the country's gas pipelines and storage facilities. The creation of Conexus ... more

Latvia fines Swedbank for failings in anti money laundering measures

The Latvian branch of the Swedish banking group Swedbank said on November 23 it will implement measures to curb money laundering. The pledge follows an audit and a fine of €1.36mn from the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss