Latvia becomes first EU country to enter recession

Latvia becomes first EU country to enter recession
In September Latvia's total retail trade turnover rose by 1.8%. / bne IntelliNews
By Linas Jegelevicius in Vilnius November 1, 2022

Latvia has become the first EU country to enter recession in the current economic cycle, according to a flash estimate published by Latvia’s Central Statistical Bureau (CSB) on October 28.

Compared to the second quarter of 2022, GDP fell by 1.7% (according to seasonally and calendar adjusted data).This puts Latvia in technical recession (two consecutive quarters of q/q decline) following the 1% q/q fall in Q2 GDP.

Compared to the third quarter of 2021, gross domestic product (GDP) decreased by 0.6% (according to seasonally and calendar non-adjusted data),, a Latvian news website, reported on October 31.

Provisional estimates show that GDP was affected by a drop of 3.9% in producing sectors and a growth of 1.7% in services sectors.

However, the figures are subject to revision, and the precise volume of and changes in the GDP in the 3rd quarter of 2022 will be published on 30 November.

Separately, calendar-adjusted data (at constant prices) compiled by the Central Statistical Bureau (CSB) show that, compared to September 2021, in September 2022 total retail trade turnover rose by 1.8%. Retail trade both in food as well as in non-food products (except for retail sale of automotive fuel) increased by 1.8%, and turnover of retail sale of automotive fuel by 1.5%.

As compared to September 2021, the largest turnover rise was registered in retail sale of information and communication equipment in specialised stores (of 19.2%), retail sale of hardware, instruments, construction materials and sanitary equipment (9.9%) and retail sale of clothing, footwear and leather goods (7.3%). Turnover drop was registered in retail sale in stalls or markets (of 7.0%), retail sale of cosmetics and toiletries (5.2%) and non-specialised stores selling mainly non-food products (3.5%).

Total retail trade turnover at current prices increased by 21.5% (not taking into account the calendar influence). Compared to August, in September 2022, the total turnover of retail trade enterprises rose by 1.2%, according to seasonally adjusted data at constant prices, reported.