The Latvian economy grew a seasonally adjusted 0.3% y/y in the third quarter, a second reading from the Central Statistical Bureau (CSB) showed on November 30.
The reading is a revision from an expansion of 0.7%, which the CSB published at the end of October. The poor result illustrates a considerable slowdown of economic growth in comparison to the 0.8% expansion reported for April-June. The pace of growth has been slowing since the third quarter of 2015, and July-September was the weakest since the fourth quarter of 2010.
Unadjusted growth came in at 0.3% y/y as well, a significant disappointment compared to the 2% expansion recorded the previous quarter. In adjusted quarterly terms, the economy expanded 0.2%, slowing from 0.5% in the second quarter.
As was the case in April-June, ongoing problems in the construction sector, which contracted 22% y/y in the third quarter, contributed to the unimpressive GDP reading in July-September. The drop could not be offset by the limited contributions from manufacturing, which expanded 3.7%, or trade, which advanced 3.9%, the CSB notes.
In terms of expenditure, GDP growth benefited from a 3.2% growth in household consumption, but that was offset by a 12.2% drop in investment.