Latvian industrial production growth slows down to 3.6% y/y in November

Latvian industrial production growth slows down to 3.6% y/y in November
By bne IntelliNews January 7, 2018

Latvia's calendar-adjusted industrial production growth slowed down to 3.6% y/y in November, the Central Statistical Bureau (CSB) reported on January 3.

The gain marks the fifteenth positive monthly reading in a row, although the pace of growth faded for the second month in a row in November to the slowest rate since September 2016. Nonetheless, the November growth remains in line with forecasts indicating the Latvian economy’s shift to a higher gear in 2017.

Latvian GDP grew just 2% in 2016. In the third quarter, however, economic growth accelerated to a seasonally-adjusted 6.2% y/y, the CSB announced on December 1.

The Latvian economy is forecast to accelerate growth to 3.2% this year, the European Commission predicts in a conservative estimate, given recent performance. Fitch forecasts growth of 4.1% in 2017, while the OECD is the most optimistic, putting growth at 5.2% this year.

The annual industrial production growth in November was driven by expansion in the segments of manufacturing and mining and quarrying. Output in manufacturing grew 9.1% y/y, while in mining and quarrying, it jumped 24.3% y/y in November. In the utilities segment, output fell 11.8% on the year, however.

Within the manufacturing sector, all segments but one recorded annual production growth. As in the previous month, manufacture of motor vehicles, trailers, and semi-trailers surged 39% y/y, while production of machinery and equipment grew 30.2% y/y. Repair and installation of machinery and equipment was the only manufacturing segment to see output fall, at 12.6% y/y in the eleventh month.

In seasonally adjusted monthly terms, industrial production grew 0.6%, with growth in manufacturing expanding 2.7% m/m. Output in mining and quarrying grew 4.4% m/m. In the utilities segment, production advanced 9.4% on the month.

 

 

Data

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