Financial News: Latvia GDP Growth Slows In Q1; Retail Sales

Latvia GDP Growth Slows In Q1; Retail Sales Rise In April

(RTTNews) - Latvia's economic growth eased in the first quarter of the year amid a decline in public spending but strong gains in investment offset the impact, and retail sales grew in April on higher demand for non-food products and automotive fuel, separate reports from the Central Statistical Bureau showed on Friday.

Gross domestic product rose a non-adjusted 2.5 percent year-on-year following a 2.9 percent growth in the previous quarter. The pace of growth slowed for the first time in three quarters and was the slowest in as many.

"Electricity, gas, steam and air conditioning supply, along with the wholesale and retail trade as well as real estate activities had a significant impact on the overall growth of the value added," the statistical office said. "However, a decline in transportation and storage as well as agriculture, forestry and fishing partially offset the increase."

Among the main production sectors, output in the transportation and storage industry decreased 8.3 percent year-on-year, while production surged 21.6 percent in the other industry group.

On the expenditure side, gross capital formation increased 13.3 percent, government spending decreased 1.5 percent.

On a seasonally and calendar adjusted basis, the economy grew 2.5 percent in the first quarter following a 2.6 percent rise in the previous three months.

GDP rose an adjusted 0.6 percent quarter-on-quarter in the first three months of the year after a 0.7 percent expansion in the previous quarter. The rate of growth was the weakest in six quarters.

Separate data from the statistical office showed that retail trade turnover rose a calendar adjusted 2.6 percent year-on-year in April. Sales of non-food products excluding motor fuel increased 2.9 percent and demand for motor fuel rose 3.0 percent. Sales of food products grew 1.8 percent.

The biggest upturns were recorded in the retail sale of pharmaceutical and medical goods, followed by retail sale of cultural and recreation goods, and retail sale of information and communication equipment in specialized stores, the statistical office said.

The sharpest turnover decline was recorded in the retail sale of clothing, footwear and leather goods, the office added.

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