The Latvian economy grew a seasonally adjusted 4.8% y/y in the fourth quarter, a flash reading from the Central Statistical Bureau (CSB) showed on January 30.
The result shows a slowdown in economic expansion on the seasonally-adjusted expansion of 6.2% y/y in July-September. The slowdown of GDP growth in the fourth quarter puts an end to a series of fourth consecutive quarters of accelerating GDP.
Unadjusted growth came in at 4.2% y/y, a slowdown of 1.6pp on the unadjusted annual expansion recorded in the preceding quarter. In quarterly terms, the economy fell a seasonally and working day adjusted 0.3%, compared to a growth of 1.5% q/q in the third quarter.
The strong performance came across the key sectors of the economy. There was a 21% y/y expansion in construction. Industrial production grew 5%, while the services sector gained 4%, including a 5% growth in retail.
The fourth quarter data are likely to keep forecasts for GDP growth in 2017 largely unchanged from the most recent projections putting expansion at over 4.5% last year.
Detailed data on GDP growth in the fourth quarter is due on February 28.